Dear Client,
Based on the property transaction you are involved in, it is, therefore, important to have a close scrutiny of the legitimacy of purchasing an apartment through Joint Development Agreement (JDA) in which the land is owned by multiple individuals through a company and sale is being executed by a General Power of Attorney (GPA) holder. I will provide clarity to all your queries based on your concerns.
When it comes to the signatures of the landowners on the sale agreement and at the time of registration, it is advisable to obtain the signatures of all legal owners or their duly authorized representatives. The Supreme Court stated that a GPA holder cannot execute a sale deed unless expressedly empowered to do so. In the absence of clear and specific authority to sell in the GPA, any transfer of ownership carried out by the builder's representative (Mr. X) will, one day, be open to legal contest. Should the land be owned by a registered company, it must also be established whether the company’s secretary has the requisite authority to execute the sale deed. This could be ascertained by perusal of the company's Articles of Association and board resolutions. If the owners are individual stakeholders in the company, their signatures may also have to be taken depending on how the ownership of the company is structured.
As regards the validity of the agreement conferred between the builder's representative and the company's secretary, it concerns the Joint Development Agreement (JDA) and the Power of Attorney (POA). The JDA must explicitly confer the builder the power to sell the developed property. In the absence of such a provision in the JDA, the builder cannot be transferred out of legal authority. And, the POA granted to Mr. X should also concisely empower him to sell and execute sale deeds.
First is the issue of ownership transfer. So, if he can only perform administrative acts such as getting approvals, Mr. X cannot transfer ownership. The dictates of a 2011 Supreme Court ruling on this matter state that a GPA holder cannot function as an owner in sale transactions. This means that any such sale could be nullified unless there exists clear authorization.
In case any of the original landowners got deceased, signatures of all legal heirs are paramount; otherwise, future disputes could arise. Limitations of these kinds can give rise to litigation and claims from the legal heirs, which might put your ownership at risk. Care must be taken to ensure the title of the property is free from encumbrances and has no claims from heirs waiting or disputes between landowners.
Then it comes to the question of floor violation which is another major problem. The builder is constructing a five-floor building while permission has been approved only for four floors. Just because the builder is not the only one doing the violation in the neighborhood does not give any legal right to this extra floor. The municipal authorities may, in the days to come, take action against them for this, which may range from demolition to fines and might damage your investment.
These legal vrthental had mahalji matters of concern, I wanted to really advise you to obtain a certified copy of the JDA and GPA, get it examined by a legal expert, and make sure that the sale deed is signed by all landowners or their authorized representatives of the company. You should not go ahead with the construction if any builder is just acting on the power of attorney without authority to sell. If the builder does not provide clarity, you may consider sending a legal notice or withdrawing from the transaction. Your investment must be legally beyond expectations, and taking the above measures will go a long way in avoiding future complications.
Hope this helps. Let me know for further help.
