Yes it's valid. Sale deed required if agpa not registered.
Bought a property that previously had agreement of sale and GPA
Hi, I bought an agricultural property in Telangana in 2018 and now I wanted to sell it but found out that it had an AGPA or Agreement of sale cum GPA on another person. When I bought the property I got the EC and it didn't show any AGPA in that. So now I came across this AGPA from the registrar office. The scenario is 1. Person A sold the property to Person B. 2. Person B has done an AGPA in 2007 (apart from the AGPA there is no sale deed) to Person X. Person B also sold it to C in 2016 which has sale deed and shows up in the EC as link document. 3. I bought it from C in 2018 and later got the Passbook and Mutation done on my name. The EC that I got shows the sale deed, dates and the survey number for all the three transactions except the AGPA transaction between B and X . Upon going through the AGPA I see points such as "Time is not the essence of this contract", "Vendee should hold...as an absolute owner as they like without any let or hinderance..", "The previous title deed are handed over to the purchaser", "The vendor admits and acknowledges receipt of the said sum and also delivered the possession of the vendee to HAVE and to HOLD the same absolutely forever." Please tell me if my situation is same as double registration? Is the AGPA still valid and does it grant full rights of the property to the person X without a sale deed? What are my options here?
Asked 4 years ago in Property Law
Religion: Hindu
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12 Answers
The AGPA is registered but it is not showing up in EC. Do I have any rights on the property?
Asked 4 years ago
You can get the EC separately. Yes it's valid
You don’t have clear and marketable title to property
2) X can always sue to set aside sale deed executed by B in favour of C and subsequent sales
3) admittedly full payment was received by B
4) it is necessary to peruse AGPA to advice further
You don’t ha e clear and marketable title to property
On the basis of AGPA no valid title transferred in favour of X. Therefore you don't have much things to worry on this account.
X however can ask for refund of money from B. But he can not claim title of the land.
Keep your physical possession therein.
Dear sir/madam,
It is advisable to recheck the entire property /sale deeds and try to know the hidden clauses.
also, you may sue the person who sold you the property without disclosing the entire facts.
You should visit a nearby Legal advisor for better assistance in your case.
If the GPA cum agreement of sale deed was executed by an unregistered deed document then it may not reflect in the encumbrance certificate.
Whether it was executed by a registered or an unregistered document, until it was not formally cancelled by the principal/vendor, the GPA deed will remain as valid .
Also it is not known that whether the vendor returned the consideration amount he received from the vendor.
You say that the entry regarding the GPA transaction was not found in the EC, then how could you come to know about this from registrar's office, did you find any entry in the endurance certificate subsequently.
Did you obtain a legal opinion from a lawyer before purchasing this property or at least now after finding an adverse entry in respect of this property ?
The power agent cum purchaser can very well file a suit for specific relief by cooking up false information to bring the claim within the limitation period.
In that case you may have to run between the court and home.
Did you ask your vendor about this legal problem?,
It becomes the duty of your vendor to clear all these problem or to face the litigation expenses that may come up in this regard if the party X decides to approach court claiming his relief.
If the GPA deed is registered then it has to be cancelled by executing a cancellation deed executed by both the principal and the power agent jointly.
If this is not done immediately, this encumbrance will remain ever in the property registration records which may cause problem for you at a future stage too when you are trying to sell the property.
1. EC does not legally show the confirmed indication of title of the property but registration deed does.
2. You should have made registry search before buying the property.
3. If the AGPA has been registered after 2012 without paying the stamp duty for the amount received by him then any further registration of sale deed based on the said AGPA is invalid.
1.Eights are not conferred based on the updation of status in EC
2. If the AGPA can be proved invalid, then you have then right on the said property.
3. You should lodge a police complaint against the seller for cheating or attempting to cheat you.
- As per Supreme court , in the case of Suraj Lamp & Industries Pvt. Ltd. Vs State Of Haryana held , that sale transactions carried in the name of general power of attorney will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.
- Further , transactions of the nature of GPA sales or SA/ GPA/ WILL transfers’ do not convey title and do not amount to transfer nor can they be recognised or valid mode of transfer of immovable property.
- Hence, a person who was having AGPA cannot execute Sale deed in favour of purchaser legally.
- You can file a suit for Declaration before the court for declaring owner of the said property which you have purchased.
Yes, you have rights on the property as the owner B latest transaction get active means his previous POA got the overruled by latest transaction of sale deed with owner C.
Plus POA holder should have objection at that time and not now as limitation act comes in picture so court may not accept his POA.
So for better clarification in deep we need to read all sale deed registered against that POA.
