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Property transactions vs GPA.

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T.N.Reddy

M.Com

313 Points Posted on 26 October 2021

Sir, one of my client is entering in to buy one plot worth of Rs. 80 lakhs from the GPA holder. So, as per the recent SC Judgement, any transactions that are executed by the GPA is not valid, but still in the field/market, people are not very cautious about that judgment and entering in to such an agreements for sale /sale deed through such GPA’s. Kindly advice on that sir.

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Quick Summary

This discussion addresses the validity of property transactions executed by a GPA holder, especially after a recent Supreme Court judgment. While the judgment casts doubt on such transactions, the market continues to see agreements and sale deeds made through GPAs. The advice clarifies that while an attorney can act on behalf of the owner, the transaction must be registered. The ban applies to transactions solely based on power without registration, particularly when the owner's whereabouts are unknown. Ultimately, deals are struck between the owner (via the attorney) and the purchaser.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 27 October 2021

You can deal with attorney on behalf of the owner, but it has to be registered.

The ban is over the transactions being held just with power without its registration; where there is no where-about of owner.

Even now a person can give power to an attorney to deal with prospective buyer, but deal gets transacted between the owner (through attorney) and the purchaser.