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The transformation from AGPA (Agreement of Sale cum General Power of Attorney) to a sale deed in pro


08-Jul-2024 (In Documentation Law)
The AGPA (Agreement of Sale cum General Power of Attorney) was executed by the vendor in favor of three persons (vendees/AGPA holders). Among them, vendee/AGPA holder no.1 passed away, leaving behind his mother, wife, 4 sons, and 3 daughters as legal heirs. Now, at the request of vendee/AGPA holders no.2 & 3, the original owner intends to execute a sale deed in favor of three persons, including the wife of the deceased vendee/AGPA holder no.1, and the remaining vendees/AGPA holders no.2 & 3. In the new sale deed, the original owner and the legal heirs of deceased vendee/AGPA holder no.1, along with vendees/AGPA holders no.2 & 3, are listed as vendors. The legal heirs of the deceased vendee/AGPA holder no.1 are represented by a Registered GPA in favor of his younger son. Can the sale deed be executed by using a GPA of the legal heirs of the deceased AGPA holder/vendee no.1? Can the vendees also be added to the list of vendors?
Answers (2)

Answer #1
53 votes

A Sale Agreement cum General Power of Attorney (GPA) is generally not considered to be a valid mode of transferring ownership of immovable property. A GPA is a legal document that grants a person the power to act on behalf of the property owner for specific purposes, such as executing documents, registering the property, or selling the property. However, it does not convey any ownership or title to the property.

The Supreme Court of India, in the case of Suraj Lamp & Industries Pvt Ltd v. State of Haryana and Another, has held that transactions involving the sale of immovable property through a GPA are not legally enforceable, and do not convey any title to the property. Therefore, any sale of immovable property based on a GPA is not considered to be legally valid and may be challenged in a court of law.

However, if the Sale Agreement cum GPA is registered and executed in compliance with the law, it may be valid for a limited purpose, such as authorizing the person to act on behalf of the owner for specific purposes. In such cases, the validity of the Sale Agreement cum GPA would depend on the specific facts and circumstances of the case, and compliance with relevant legal provisions.

It is recommended to hire a property/documentation lawyer since without going through all the documents and understanding the facts of the matter in detail, it is not possible to advise correctly.

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Answer #2
597 votes
Your entire documents will have to be looked into in order to answer this query. Please contact me for further details and I can address all your answers. I am an expert on documentation and title due diligence.
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