Hello, I am purchasing a land in bhondsi village. Registry is not there, only gpa can be done. Can I go for sale deed in the absence of registery and can I get loan on that sale deed from banks?
Buying a property through a GPA is not legally valid.
You will not become a owner if you buy it without a registered sale deed, the GPA is not a title deed.
You cannot get loan or any benefits out of the property including the absolute right to enjoy the property.
Once the principal cancels the GPA then you will be devastated of any rights in the property.
No loan is given on GPA property.
1. Transfer of property through GPA is not legally permissible.
2. Go for sale deed and based on your CIBIL score and your repaying capacity you will get loan from banks.
Bank would not grant a loan unless title is clear and marketable
Registered sale deed confers clear and marketable title to land
You need to do registered sale deed for any transaction of sale. Only gpa is not valid
It is not wise to purchase property merely on the basis of GPA .
Rather go for registered deed of conveyance only in absence of which no Bank will grant loan.
Dear client, A General Power of Attorney (GPA) is not considered a valid document for transferring ownership of a property, and as a result, banks or financial institutions usually do not lend against it. A Sale Deed is the legal document that transfers the ownership of a property from the seller to the buyer, and in the absence of a registry, a Sale Deed can be executed. However, it is essential to verify the title of the property and the legitimacy of the GPA. It is highly recommended to consult with a local lawyer and obtain legal advice on the documentation and verification process. Furthermore, it is important to note that the absence of a registry may impact the resale value of the property in the future.
- The 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 Sale Agreement / 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.
- If the said sale agreement is not registered from the office of the registrar , then it will have no value in the eye of law and bank cannot sanction loan on this document.
