Buying Property through General Power of Attorney - GPA
A legal document giving one person (called an "agent" or "attorney-in-fact") the power to act for another person (the principal) is called a Power of Attorney. The agent can have broad legal authority or limited authority to make legal decisions about the principal's property and finance. The power of attorney is frequently used in the event of a principal's illness or disability, or when the principal can't be present to sign necessary legal documents for financial transactions.
“When someone transfers any immovable property through GPA, it does not convey any rights or title or create any interest in respect of such immovable property in favor of such person as only a deed of conveyance/sale deed which is duly stamped under the provisions of the Stamp Act applicable to the state in which such property is situated, as well as registered under the provisions of the Registration Act, does so”, this was stated by the Honorable Court in one of their ruling.
Validity and Scope of General Power of Attorney
In cases where a sale deed cannot be carried out due to various issues for buyers and sellers, a power of attorney can be put to great use.
A GPA is defined as “a mere agency whereby the grantor authorizes the grantee to do certain acts specified therein; this he does on behalf of grantor, which when executed will be binding on the grantor as if done by him”.
GPA is Not Irrevocable
Immovable property can legally and lawfully be transferred or conveyed only by a registered deed of conveyance and not through GPA. By the means of a registered sale deed the ownership transfers directly to the purchaser. In case of a General Power of Attorney, if principal dies then automatically the general power of attorney ceases and ownership goes to the legal heirs of the principal. The law is that even if the parties have determined that the GPA is irrevocable it won’t have the effect of transferring title to the grantee.
These guides are not legal advice, nor a substitute for a lawyer
These articles are provided freely as general guides. While we do our best to make sure these guides are helpful, we do not give any guarantee that they are accurate or appropriate to your situation, or take any responsibility for any loss their use might cause you. Do not rely on information provided here without seeking experienced legal advice first. If in doubt, please always consult a lawyer.
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