How to convert agreement of sale cum gpa into sale deed ?

132 votes

An "Agreement of Sale cum GPA" (General Power of Attorney) is a legal document used in property transactions, combining a sale agreement with the authority to act on behalf of the seller. This empowers the buyer to handle various tasks such as executing documents, registering the property, or even selling it further. However, a GPA does not transfer ownership only a registered sale deed can legally convey property rights. While this combo document is sometimes used for convenience, the Supreme Court of India has clarified that property transfers solely based on GPA are not valid substitutes for a registered sale deed.

LawRato LawRato

578 votes

Dear Client, You must inform the owner of the property. As per recent Supreme Court judgement G.P.A. sales will not confer valid title. So go for purchase of land by owner only. I will cite gist of Supreme Court citation. No property sale on power of attorney: Supreme Court The court rules that transfer through general power of attorney cannot give ownesrship title to the buyer. Gyanant Singh New Delhi, October 13, 2011 | UPDATED 12:11 IST A +A - Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer. In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property. A three-judge bench presided over by Justice R. V. Raveendran said that property can be lawfully transferred only through registered sale deeds. "A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA. The judgment delivered on Wednesday would have an impact on both freehold and leasehold properties and affect the mode of transfer of property in Delhi and the National Capital Region (NCR) where GPA sales are very common. Even though it can cause some hardship to those who have already purchased property through the GPA, the order will help curb evasion of duties, flow of black money into real estate and also save people from being cheated by unscrupulous owners selling the same property to several people. Navin Raheja, chairman and managing director of Raheja Developers said, "The court's decision will help to curb the circulation of black money to some extent in the real estate sector where titles are manipulated. Besides, many property transactions where prices are rounded off will be affected. However, overall there won't be any significant impact on normal property sales."

Advocate Sistla Rama Krishna LawRato

947 votes

Hello, As the owner of the property is not alive, request the legal heirs of the owner to execute the sale deed in your favor, in place of the original Agreement of sale cum GPA as you cannot transfer the property through Agreement of sale cum GPA. Not intimating the legal heirs of the owner about the sale is illegal and this can put you into trouble when they come to know about the sale and object the same and the litigation may prove tough for you.

Advocate B. Srikiran LawRato

634 votes

Find the real owners is most important. You are paying hard earning money. Do not compromise. Discuss with them about deal and do not make payment till you satisfied with them. Show these documents to a good lawyer who can deal these type of cases. You personally take EC from register Office or Meeseva rather than GPA holder.

Advocate Sanjeevi Krishna Rao LawRato