GPA can be executed in favour of family member
there is no bar to such GPA being executed
it is safe
Hi, I am trying to a buy a plot in bangalore which is owned by a mother and her daughter. The mother resides in Bangalore and the daughter is in the US. The mother and daughter have given a general power of attorney to son/brother in June 2020 to sell the property on their behalf. I would like to know if there is a timer period for the GPA to expire. I am being told that a recent order by the Honourable Supreme Court was to discourage any property dealings involving a GPA. Could you please advice if such a deal is safe to go ahead.
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GPA can be executed in favour of family member
there is no bar to such GPA being executed
it is safe
1. The GPA has to be a registered one.
2. GPA will expire, when once the task is performed or if the Principal or Agent die.
3. The Hon'ble Supreme Court has held that no transfer of property can take place through GPA instead of Sale Deed. But in the instant case, as narrated by you, the mother and the daughter have appointed their son/brother through GPA only to act on their behalf, as the mother may be an old aged lady and the daughter is in USA and she can't physically be present and hence the GPA. In the above situation, the Agent appointed through GPA can sell the property.
4. However, before proceeding further, show the papers to any Lawyer and based on his opinion only, take further action.
Have the mother and the daughter executed a single GPA or two different GPAs? If joint, was it executed when the daughter (residing in the USA) was visiting India? If separate GPAs were executed, was the one executed by the daughter in the USA notarized or attested by the Indian Embassy/Consulate in the USA? Was it then duly adjudicated in India within three months of its arrival here? Besides it has to be ensured that both principals are alive as on the date of registration of the sale deed and that the GPA has not been revoked by any of them. Please engage a lawyer to verify these factual aspects, besides the original GPA/s and the title documents, and if satisfied, please proceed.
- Since, the daughter is living in US , then she can execute POA in favour of said relative to transfer and execute the property in your favour , but that POA should be properly notarized as per rule of US , and attested from the consulate of India , if the said POA was given from there.
- Further, mother can also give POA on her behalf , but that POA should be registered from the office of Registrar .
- If there is no clause mentioned in the said POA , then it is valid till the time of its performance
- As per Supreme Court, this GPA should be used for personal gain .
The property can be purchased by a registered sale deed duly executed by a power holder having a registered power of attorney deed on his favor authorizing him to sell the property executing a registered sale deed in favor of the prospective buyer.
Dear client,
A person residing outside of India cannot use a GPA to purchase property in India. This is not allowed by the law. Such a deal will not be safe.
Thank you.
Dear Client,
Through an order in 2011, the Supreme Court (SC) held that transferring property title through GPA is not valid. If you grant someone a GPA, they can pay your utility bills, collect rent on your behalf, manage and settle disputes, carry out all bank-related work acting as your representative.
Thankyou.