General Power of Attorney for Property in India: Buyer's Guide

Introduction

The General Power of Attorney (GPA) is a legal instrument that provides one individual the right to act for another individual. In the context of real estate, a general power of attorney can help facilitate the transfer of property when the owner of the property is not able to attend to all paperwork, negotiation, or registration. A GPA in itself does not result in transferring property rights.

A potential buyer who is buying property in India should understand the GPA in India.

What Is a General Power of Attorney?

A general power of attorney grants a wide variety of legal authority to an agent or an attorney to carry out certain actions on behalf of the donor or the principal.

What Is GPA in Property?

A GPA in Property grants an authorized representative the ability to deal with issues related to property management, paperwork, tenancy, and dealing with authorities. The specific powers vary depending on the document.

Why Is General Power of Attorney Used in Real Estate?

Usefulness of a GPA in the following scenarios:

The owner of the property stays out of the country or a different city.
The owner is unable to participate in the procedure of property registration.
An authorized agent is supposed to handle more than one property.
The owner needs help with signing papers.

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Types of Power of Attorney

Some of the common forms of power of attorney are as follows:

General Power of Attorney: General authority over certain things.
Special Power of Attorney: Specific authority over a specific transaction or purpose.

Who Are the Parties in a GPA?

The donor/principal authorizes, and the agent/attorney holder wields the power. The roles of each in relation to the authorized agent must be clearly defined.

What Powers Can Be Given Under a GPA?

Depending on the nature of the drafting, a GPA entitles the holder to the following:

Control/lease property
Sign certain documents
Appear before the sub-registrar
Correspond about properties
Execute certain property documents

Can a GPA Holder Sell Property?

The GPA holder can prepare a sale deed in favor of the owner provided that the GPA has the authority to do so, and all requirements under law have been satisfied. But the GPA is not the instrument of sale/conveyance. (API SCI)

Does GPA Transfer Property Ownership?

No. The GPA establishes the relationship of agency; however, the GPA alone cannot transfer the right of ownership. For that purpose, the sale/conveyance deed must be registered. (API SCI)

GPA vs Sale Deed

GPA	Sale Deed
Creates power	Transfers property
Power deed	Conveyance deed
Does not transfer title by itself	Transfers title when executed, stamped, and registered.

GPA vs Special Power of Attorney

The GPA gives more authority than the SPA because the SPA allows only specific transactional authority, i.e., limited authority.

What Should a GPA Agreement Contain?

A GPA agreement should include the following:

Principal and attorney-in-fact holder information
Description of property
Powers conferred
Restrictions and conditions
Period and termination provisions
Signatures and witnesses

Documents Required for a GPA

The types of property documents that may be considered include proofs of identity and address, photos, title deeds, and other relevant stamp papers.

How to Execute a GPA: Step-by-Step Process

Determine the necessary powers.

GPA shall be drawn.
Examine the property and the title deeds.
Pay the requisite stamp duty.
Endorse it with the concerned authority.
Register it if needed.

As per the Registration Act, 1908, any power of attorney, whereby the agent presents the document for registration, has to be made in accordance with Section 33. (India Code)

GPA Registration: Is It Mandatory?

There is no single answer for every GPA. The requirements for each GPA concerning its registration and authentication will differ depending on the purpose of the GPA and the content of the GPA. In real estate transactions, the buyer should seek legal counsel before using a GPA.

GPA Stamp Duty & Registration Charges

The stamp duty and registration fees vary from state to state and depend on the type of GPA. It is advisable to find out the registration fee of your state before execution.

Registered GPA vs Notarized GPA

Registered GPA	Notarized GPA
Performed by the registering authority where required	Notarised by a Notary Public
Better evidentiary weight for relevant property transactions	Could be restricted in acceptance
Used where the registering legislation demands it	Is not necessarily equal to registration

The legal validity of the GPA must not be presumed to be the same as that of a registered document.

Conclusion

The General Power of Attorney offers convenience regarding property management and authorized representation, but under no circumstances can it act as a substitute for a sale deed. In case of property purchase, property sale, or property transfer, verify the title and legal documents for the property in the presence of a qualified expert.

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