Can a GPA Holder Execute Sale Deed?

I have come across this question a lot, ‘Can power of attorney sell property?,’ ‘Can a GPA holder execute sale deed?’

People have been really confused online but I am here to answer these questions. 

You know on various occasions the High Courts as well as the Supreme Court have said that sale on the basis of GPA is invalid. They have also maintained that a property can be sold or purchased only after the payment of stamp duty and registration of conveyance deed with the state government as per its rules and regulations via original owner.

Let’s say you are planning to buy a flat from the builder who had earlier made and registered a GPA to person ‘X’ and gave him the rights to sell the flat. Now can person ‘X’ execute the sale deed? No. The sale deed can be executed after the builder transfers rights of ownership and transfers the conveyance deed in the name of purchaser as the confirming party.

However, a registered property owner is allowed to execute a GPA in the favor of their spouse, son, daughter, brother, sister or close relatives to manage the property or give him/her the power to execute any further deed of transfer including conveyance deed, sale deed and gift deed. This happens when GPA is registered with the notary or concerned authorities.

Curious about can a GPA holder execute sale deed? Let me assist you with the same. A Power of Attorney (PoA) holder can indeed sell property, but there are specific conditions to consider:

• Registered Sale Deed: A PoA holder can sell the property to themselves or another party, but only through a registered sale deed. The sale cannot be executed using the PoA alone.

• Validity of PoA: While a PoA grants legal authority to act on behalf of the principal, it is not an instrument of transfer for immovable property. The Supreme Court clarified that only a registered deed of conveyance can legally transfer property ownership.

• Important Note: Any sale or transaction made through PoAs or wills before this ruling remains valid. However, for new transactions, a registered sale deed is essential.

Now that you know can GPA holder execute sale deed, let us move on to the steps that need to be followed when executing a valid sale deed through a Power of Attorney (PoA),

Prepare the PoA:

• Draft the PoA terms on a Rs. 100 stamp paper.

• Specify the authority granted to the agent (the person holding the PoA).

Visit the Registrar’s Office:

• Go to the Registrar’s office (also known as the sub-registrar’s office) in your jurisdiction.

• Include the witnesses’ signatures on the PoA.

Execute the Sale Deed:

• Create an agreement for sale (distinct from a sale deed) to lay down the rules.

• The PoA holder (agent) signs the sale deed on behalf of the principal (seller).

• Ensure proper wording and adherence to legal requirements.

I hope this helps you understand whether can a GPA holder execute sale deed.

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