Purchasing a property based on a GPA
Purchasing a property based on a GPA is very risky. How do you know that the GPA is genuine and not forged. I have had a case when a GAP was forged and Notarised falsely and property sold & registered on that. This can be challenged in a court of law.
Also check if the person who has issued the GPA is alive. GPA is not valid after the death of a person as the legal heirs are then the owners of the property.
How do you know that the GPA was issued and thenlater again withdrawn ? The person holding the GPA will obviously not tell you that the GPA has been withdrawn.
The best way is to buy the property directly from the owner.
Speaking from experience. more
Also check if the person who has issued the GPA is alive. GPA is not valid after the death of a person as the legal heirs are then the owners of the property.
How do you know that the GPA was issued and thenlater again withdrawn ? The person holding the GPA will obviously not tell you that the GPA has been withdrawn.
The best way is to buy the property directly from the owner.
Speaking from experience. more
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I endorse the view of Mr. Sanjeev Sinha. GPA is valid or effective untill principal terminates it or during his life time. All mandates also die with the death of Principal. Hence till purchaser is not sure about the above facts, it is advisable that the sale deed of the property should only be executed by the principal and not by his PA holder. more
Sep 19
I would insist on a Registered GPA or Registered Specific Power of Attorney (SPA) to consummate the transaction. That is the only way you can ensure the genuine-ness of an absent Transferor. Mere Notarisation is not sufficient. I would also insist of the Witness to the Registration in your favour being the "interested" family members of the Transferor. more
Sep 19
Many a time, owner will have received full consideration from the GPA Holder and hence will not be co-operative. However, if the GPA is a registered document, the sale must be valid. more
Sep 19
You can ask to speak to the owner or contact the owner directly to confirm if the power is still in force. If needed, get a letter from them confirming that the power is still in force. I have done this for FDI companies buying properties for their projects in India. In Tamil Nadu, the problem is reduced by making a power of attorney in respect of immovable property compulsorily registerable and is reflected in Book I, which means that any cancellation will also reflect in the Encumbrance Certificate. The Principal, Agent, and the witnesses are photographed and this also reduces the chances of forgery. more
Sep 19
