NA (d) 19 October 2011

Sc ruling regarding gpa and property

Hi,

I have a situation:
A and B are spuses and own a property jointly.

Now, A is selling A's share of the property to B for an amount. So it has to be a Sale Deed not a Transfer/Release Deed.

In the light of SC ruling on GPA and property registration:
1) Can A give GPA to a family member (not to B) and get the transaction completed?
2) Is it essential for A and B to do this transaction without bringing GPA in the picture?

Result to be achieved is that B should be having complete ownership/possession/exclusive rights over the property after buying it from A.

Pls help.

Regards,

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6 Replies

adv. rajeev ( rajoo ) (practicing advocate) 20 October 2011

What is the necessity of executing the GPA? It is better to go for release deed or gift

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com) 20 October 2011

Dear NA

the transfer the property through GPA ia illigal now according to SC Judgement

read attached judgement

Attached File : 106933 217812 3 transfer of property judgement.pdf downloaded: 269 times

NA (d) 20 October 2011

Hi Nadeem/Rajiv,

Thanks for your responses.

My concern is because of that SC ruling itself.

Spouses A and B have 50-50% share in a property. Now, A is selling 50% of the share to B for an amount (B will now be 100% owner).

To execute the Sale Deed (not Gift because its not a free exchange) A doesnt want to come physically to the Registration office rather give A's GPA to A's Sister. A's sister will then sell A's 50% share to B vis Sale Deed.

In this scenario is this a valid transaction or even in this situation GPA cannot be considered and A and B both are needed to be present at the Registration Office?

If this can be done via GPA then will the GOA be registered before for authentication?

Pls suggest, I am so confused.

M V Gupta (Advocate) 21 October 2011

If A can himself sign the sale deed but cannot attend the Registrar's Office to admit execution of the Sale deed, let him sign the sale deed and give a special POA authorising A's sister to attend the Reg Office and admit execution of the Slae deed and register the document on his behalf. GPA need not be executed. Such POA is definitely not hit by the SC Judgement.

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NA (d) 21 October 2011

Thankyou much Mr Gupta.

This clearly means that geeting this transaction with GPA involvement is not advisable.

I will go by the way you suggested.