Can owner sell to 3rd party after making power of attorney in my name?

Can the owner of a land selling it via Power Of Attorney sell it to someone else after getting into a POA with one party? I am purchasing a open plot by taking a home loan from a person who is asking for half the amount to get into an Agreement to sell and is not giving anything in writing.

I plan to make the full payment to him now and make the GPA - General Power of Attorney. Is this engagement safe and will the bank give loan on this GPA?

Can the owner sell it to another person after he makes the GPA in my name?

Answers (1)

90 votes

After the recent decision in Suraj Lamps case by the Hon'ble Supreme Court, sale through a combination of WILL / GPA / SPA / ATS is not a sale in the eyes of law. Further the buyer will not get perfect title of the property. The only way to purchase property is through a valid Sale Deed / Conveyance Deed duly registered in the local sub-registrar's office.

Since the decision is applicable in your case, the Power of Attorney will give you limited title and the current owner can further grant power of attorney. Also the banks will not grant any advance/loan on such properties after the aforesaid decision. You still can check with the concerned bank for clarification.

The seller will be at liberty to sell the property to any other person since the effect of a GPA has been clarified by the decision of Hon'ble Supreme Court.

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