who is gpa holder?

Using a general power of attorney to purchase real estate in India is a regular practice. However, the Indian Supreme Court ruled in 2011 that GPA transfers are invalid, so this is no longer an option.

Despite this, purchasers are drawn to this route of property buying because of the attractive deal that typically comes along with it, as sellers are often in urgent need to unload their assets. Therefore, prospective buyers must be well-versed in purchasing real estate via General Power of Attorney (GPA) and ensure the security of such transactions before signing on the dotted line.

It’s a formal document that authorizes one person to act on another’s behalf in various business transactions, usually involving money or legal matters. This is a typical procedure when the original owner cannot physically possess the property due to illness or disability, as is frequent with Non-Resident Indians (NRIs). For this reason, they delegate authority to conduct business on their behalf by transferring the GPA to a reliable third party.

The Special Power of Attorney is distinct from this. How? Find out by reading on!

The Special Powers Act (SPA) is what you get when you give someone blanket permission to do something. For illustration, if you choose someone to represent you in Court, that authorization will only apply to that specific matter.

A general Online Power of attorney gives the agent extensive authority, while an extraordinary power of attorney restricts the agent’s discretion.

Registration with the sub-office registrar grants a GPA to the force of law. The GPA also expires after a certain amount of time. The GPA lasts as long as the main or grantor does. Revocation is possible during the owner’s lifetime. However, the SPA is null and void after the agreed-upon objective has been finished.

No. A GPA holder is not authorised to sell the property on behalf of the owner, even if the GPA is recorded with the sub-office. Registrar’s Even the most recent ruling from India’s highest Court explicitly nullifies property sales conducted through GPA. A general power of attorney (GPA) holder may only act by the owner’s instructions and may not sell the property.

Since the GPA route is fraught with potential legal complications, it is not recommended for land transactions. However, it was common in India because it was mutually beneficial for financial gain.

A purchaser is required by law to pay stamp duty and registration fees whenever the title of a parcel of land is transferred. The seller must also pay any applicable capital gains tax. If a property is transferred via a GPA, the transfer tax and other fees are not paid, resulting in a significant loss for the government coffers. You can get the Online Home Registry Services from our Experts.

If a seller does not have full legal title to a property but still wants to sell it, they can go the GPA route. However, a buyer can be fooled by seemingly fantastic real estate deals.

Other statutory measures bolster GPA transactions. When urban development agencies allocate properties on a leasehold basis, there is sometimes a lengthy waiting period before the property can be lawfully transferred. The GPA method is widely used as a means of evading such regulations. Similarly to GPA, investing in the real estate market with untraced funds is a criminal act.

In most cases, having a power of attorney holder make a real estate acquisition is not a good idea. However, there is an important caveat. One may negotiate with the holder of an irrevocable power when that power has been acquired in exchange for valuable payment.

Verifying that the holder has a Legal document in the property, such as a purchase agreement, is essential. Any such authority ought to be recorded if at all possible. Upon the grantor’s passing, the interest attached to an irreversible authority ceases to be effective.

All other forms of energy are risky, especially if they are not properly licensed. Even if such authority is irrevocable, it can be rescinded at any time. Furthermore, it is nullified upon the grantor’s passing. Unless it is tied to interest, the law will not recognize power as absolute and unchangeable. Using the power of sale to buy a house is risky and can lead to legal issues.

Now that we know what a General Power of Attorney is and how it is created legally, we can proceed. No General Power of Attorney can be used to transfer property titles when making a purchase or sale. A sale deed must be executed to transfer real estate ownership officially, and the purchaser will be responsible for paying stamp duty and registration fees.

In its judgment in 2011, India’s highest Court made it clear that a GPA cannot be used to transfer legal ownership of the real estate. In addition, the Court determined that a power of attorney is only an agency constituted in favor of the grantee on behalf of the grantor. Even an irreversible power of attorney doesn’t give the grantee legal property ownership. As a result, GPA cannot be used to buy or Sell Patta Chitta. Only a conveyance deed stamped and registered with the appropriate state authority can be used to transfer ownership of real property.

After the initial ruling, the Supreme Court issued an order prohibiting local governments from registering properties using GPA paperwork. Genuine GPA transactions, however, would not be invalidated.

The Supreme Court: https://main.sci.gov.in/ has recognized that GPA enables widespread tax evasion, including stamp duty, income tax, wealth tax, and registration fees. In addition, GPA deals make it simpler to store untraceable cash and rake in illicit gains.

Conclusion:-

Even though you paid cash for the property and signed a contract of sale, without a registered sale deed, you do not legally own the property. You cannot sell the property without the sale deed. Not only do banks not like to fund GPA initiatives, but they actively discourage anyone from doing so. To know further details about property’s general power of attorney, the professionals at VakilSearch can be of good help.

The Power of Attorney or GPA Property is a legal document that gives authority to the agent or attorney to act or represent on behalf of the grantor or principal. In case the principal wants to give the authority to the agent but is unable to do it personally, such an act would be classified as a general power of attorney.

So GPA refers to the delegation of authority only and it has nothing to do with passing on any title to the Attorney.

The registered property owner (in whose name the property is registered) is eligible to give a GPA execution in favor of his near ones to properly manage his property. Supreme Court had previously given a verdict that a GPA in the name of a non-relative will also be acceptable.

The only requirement is that it should be registered in the Registrar’s Office so as to make it a valid legal document.

In the case of a Registry or sale deed, the title, ownership, and possessions will all be transferred in favor of the purchaser and he is the one who becomes the absolute owner post the sale deed is executed. Another difference between the two is that the GPA will automatically stand null and void on the death of the principal but when it comes to a sale deed, the seller or even his legal heirs for that matter have no right once the sale deed is executed.

In case you are looking to buy a sale deed/ registry property in Chattarpur Delhi, you are at the right place. SIG RealTech will certainly help you in this regard.

No matter whether you need a registry property in south Delhi or a GPA property in south Delhi, you can rest totally assured as this article will remove all your doubts. According to the Supreme Court, it is important to register for a power of attorney for the sale of a property.

A GPA holder can implement the sale deed only if the GPA is registered and stamped. Needless to say, it would be clear by now that GPA is a useful instrument to take care of a property’s rent and pay utility bills and it even acts as a representation when we talk of home loan-related matters.

Some areas may fall under the municipal board or gram panchayats and in such cases of selling or purchasing property, the issue of NOC (no objection certificate) and OC (occupancy certificate) may also arise to get a solution regarding GPA and property transaction, consultation of a local lawyer is recommended. Previously people were not much aware of these terms and their relevance but these days it is widely known.

The full form of GPA is General Power of Attorney. It is the power given by a person to an acquaintance to carry out specific financial or legal businesses on his/her behalf.