Property buying through a General Power of Attorney – is this the right move?

Buying a property as an investment or your own home is always an important decision. When you invest in a property, you not only part ways with your hard earned money but also invest your trust in the brand for the betterment of your family and the prospect of growing your investments. Hence the source of buying or purchasing a property becomes extremely critical. 

There have been situations where people fall prey to unauthorized or illegal sources of buying or purchasing property due to incorrect or no information. One such example is purchasing a property via a General Power of Attorney which is popular in numerous areas of Delhi-NCR and a few other cities as well. Moreover, property bought through these transactions has a number of legal hazards. One can also have the chance of losing the entire sum of money. According to the apex court, General Power of Attorney is a non-transferable instrument with respect to any title, interest, or right in immovable property. Hence, a General Power of Attorney is not a justifiable document for any purchase or transfer of immovable property. 

According to the Transfer of property Act of 1882, there is a condition if you want to sell an immovable property valued at more than INR 100. You can only sell it with a registered document of transfer. Only when a conveyance or sale deed is recorded or registered between both parties do the rights in immovable premises become vested. The apex court has stated that the General Power of Attorney allows big-scale evasion of wealth tax, income tax, registration fees and stamp duty. Additionally, it denies the advantages of such revenue for the public and the government.

Moreover, the General Power of Attorney allows people with an unrevealed income to invest their tainted wealth or black money and gain profits. Additionally, the sales via the General Power of Attorney led to the formation of illegal transactions as well as the mafia of real estate. 

Therefore, it is apparent that a transfer of land or property by means of sale can only be executed by a sale deed or deed of conveyance. You are required to purchase land or property when you can register it in your name and become a valid and legal owner. Additionally, it is good to consider more than simply the price of property. 

A general power of attorney (or “GPOA”) is an incredibly useful legal document, but it is not the optimal option when it comes to real estate transactions. If you do decide to buy a home with a GPOA, make sure that you understand what you’re getting into and get competent legal advice.


Begin typing your search term above and press enter to search. Press ESC to cancel.

Back To Top