Can A Registered GPA Holder Sell The Property In India?

Can a registered GPA holder sell the property? This is one of the most frequently asked questions in Indian real estate, often leading to confusion and legal disputes. Many people believe that holding a General Power of Attorney (GPA) allows them to sell or transfer ownership of a property - but that is not true. A GPA only gives someone the right to act or sign on behalf of the real owner; it does not make the GPA holder the owner of the property. According to Section 54 of the Transfer of Property Act, 1882, an agreement to sell or a GPA alone does not transfer property ownership. To make a sale legally valid, a registered Sale Deed must be executed as required under the Registration Act, 1908. The Supreme Court in the landmark case Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr. (2011) made it clear that property transactions done only through Agreement to Sell, GPA, and Will (SA/GPA/WILL transactions) do not convey ownership or title of the property. Before proceeding, this section outlines the fundamental legal principles governing the sale of property through a General Power of Attorney (GPA). It clarifies common misconceptions about what a GPA allows, how real ownership is transferred, and why “SA/GPA/Will” deals does not convey legal title to the buyer.

We will Explore:

• What Exactly Is A GPA?
• Legal Considerations For Selling Property With A GPA
• The Law After Suraj Lamp: Why GPA “Sales” Do Not Transfer Ownership
• So, When Can A GPA Holder Sign A Sale Deed?
• Buyer’s Due Diligence Checklist
• Common Pitfalls & Red Flags

GPA Is Not Ownership: Why A Registered Sale Deed Is Essential

A General Power of Attorney (GPA) only gives someone the right to act or sign documents on behalf of the real owner. It does not make them the owner of the property.

1. Ownership Transfers Only Through a Registered Sale Deed

Property ownership can be legally transferred only through a registered Sale Deed (or another valid conveyance document) as required under Section 54 of the Transfer of Property Act, 1882, and the Registration Act, 1908.

2. SA/GPA/Will Transactions Are Not Legal Transfers

Selling property using just an Agreement to Sell, GPA, or Will (commonly called SA/GPA/Will transactions) does not give the buyer any legal ownership or title. The Supreme Court in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr. (2011) clearly held that such transactions do not convey ownership.

What Exactly Is A GPA? (and How It Differs from a Sale Deed)

A Power of Attorney (POA) is a formal instrument by which one person (the Donor or Principal) grants authority to another person (the Attorney or Agent) to act on their behalf.

• General Power of Attorney (GPA): Grants the attorney broad powers to handle multiple affairs of the principal, such as managing properties, handling bank accounts, filing taxes, and representing them in legal matters.
• Special Power of Attorney (SPA): Grants authority for a specific act or transaction only, such as selling a particular property to a specific buyer.

The Powers-of-Attorney Act, 1882, governs the legal framework for these documents. Fundamentally, a GPA simply creates an agency relationship. It is an instrument of delegation, not an instrument of conveyance. In contrast, a Sale Deed is the legal document that formally transfers the title and ownership rights of an immovable property from the seller to the buyer. It must be executed and registered as per the law.

Legal Considerations For Selling Property With A GPA

While a GPA does not transfer ownership, it is a crucial legal tool in property transactions where the principal cannot be physically present. For a GPA to be effective in a property sale:

1. Registration is Mandatory: The GPA itself must be registered (Sub-Registrar's Office) if it pertains to the sale of immovable property, especially after the Suraj Lamp judgment.
2. Specific Authority: The GPA must explicitly grant the attorney the authority to sell the property, fix the price, execute the sale deed, and receive the sale consideration.
3. Owner’s Capacity: The principal must be competent to contract and mentally sound at the time of executing the GPA.

The Law After Suraj Lamp: Why GPA “Sales” Do Not Transfer Ownership

The Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr. (2011) case is a landmark Supreme Court judgment that changed how property transactions through GPA, Agreement to Sell, and Will are viewed in India. Before this case, many people bought and sold property using only these three documents - an Agreement to Sell, a General Power of Attorney (GPA), and a Will - to avoid paying stamp duty and registration fees. However, this created confusion, fraud, and disputes about who the real owner was.

In this case, the Supreme Court made it very clear that such transactions do not transfer ownership or title of the property. Here is what the Court said in simple words:

• A GPA only permits one to act on behalf of the owner; it does not transfer ownership.
• An Agreement to Sell only shows an intention to sell in the future; it is not a sale by itself.
• A Will takes effect only after the death of the person who made it, so it cannot be used for instant transfer.
• Therefore, using these documents together (called SA/GPA/Will transactions) does not make the buyer the legal owner.

The Court also explained that property ownership can be transferred only through a registered Sale Deed under the Transfer of Property Act, 1882, and the Registration Act, 1908. In simple terms, the Suraj Lamp ruling, buying property through GPA or similar shortcuts, is not legally valid. If you want to become the real, lawful owner, you must register a proper Sale Deed.

So, When Can A GPA Holder Sign A Sale Deed?

The GPA holder's role is to act on behalf of the owner to complete a statutory transfer. A GPA holder can legally participate in the sale process only if:

1. Specific POA is Issued: The property owner (principal) issues a clear, registered POA specifically authorising the attorney to execute and register a sale deed for the described property, typically specifying the terms and minimum consideration.
2. Registered Sale Deed Execution: The attorney executes and registers a formal Sale Deed in the buyer’s favour at the Sub-Registrar's office. The attorney signs the Sale Deed as "[Attorney Name] for [Owner's Name]."

Crucially, even in this scenario, it is the registered sale deed that transfers the legal title- not the GPA itself. The GPA is merely the instrument of authority that enables the sale deed to be executed by the representative.

Buyer’s Due Diligence Checklist (Actionable)

Before buying any property, especially through a Power of Attorney (POA), check these simple but important points:

1. Check who really owns the property: Look at all past sale papers to confirm the real owner. Match the POA details with the property. Make sure the POA is still valid and not cancelled. The owner should clearly permit to sale.
2. Check all legal papers: Confirm the POA and property papers are registered, and stamp duty is paid. See that names, addresses, and property details match. Also, check the Encumbrance Certificate (EC), property tax receipts, and get NOCs from the housing society or local authority.
3. Buy only through a registered Sale Deed: This is the only legal proof of ownership. Do not rely on just an Agreement to Sell, GPA, or Will, as these do not transfer ownership.

Tip: Keep a simple printed checklist to make sure you do not miss any of these steps before buying.

Common Pitfalls & Red Flags

Buying or selling property through a General Power of Attorney (GPA) can be risky if you do not check the details carefully. Here are some common mistakes and warning signs to watch out for, explained in simple words:

• Fake “GPA Sale Deed” labels: Some documents are wrongly called “GPA Sale Deeds.” Remember, a GPA is not a Sale Deed. It only permits acting on behalf of the owner; it does not transfer ownership.
• Payment only through Agreement to Sell or Receipt: If money is paid only under an Agreement to Sell (ATS) or a simple receipt, and no registered Sale Deed is made, the buyer does not become the legal owner.
• Refusal to register the Sale Deed: If the seller or GPA holder avoids registering the Sale Deed, that’s a serious red flag. Without registration, the sale has no legal value under the Registration Act, 1908.
• Vague or expired Power of Attorney: A POA that does not clearly mention the authority to sell, or one that has expired, is undated, or has been revoked, is not valid for any property sale.
• Untraceable or deceased owner (principal): A GPA automatically ends if the real owner dies or cannot be contacted. Any sale made after that is invalid.
• Tenancy or possession claims under Section 53A (Transfer of Property Act): Some people claim ownership or possession under this section without a registered Agreement to Sell. The Supreme Court has clearly said such claims are not valid unless the agreement is registered.

Important Supreme Court Judgments On GPA Property Sales

These Supreme Court judgments fundamentally altered property transactions in India by declaring that informal arrangements using GPA and Agreements to Sell are invalid methods of transferring ownership. The rulings emphasize that legal title can only be conveyed through a formal, registered sale deed.

Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr. (2011)

Issue: In the Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr. case, the court examined if transactions using a combination of Agreement to Sell, GPA, and Will could validly transfer property ownership.

Facts: This case highlighted a widespread practice where people used these document combinations to evade stamp duty and registration fees when buying and selling land.

Judgment: The Supreme Court definitively ruled that GPA sales do not convey any title or create any legal interest in a property. It declared that only a registered deed of conveyance (Sale Deed) can transfer immovable property ownership in a living transfer (inter-vivos).

Ramesh Chand v. Suresh Chand (2012/2025)

Issue: In the Ramesh Chand v. Suresh Chand case, the court determined whether an Agreement to Sell and a Will provided sufficient proof of ownership in a family dispute, following the Suraj Lamp precedent.

Facts: Two brothers had a dispute over their father's property, which was transferred using unregistered documents and a registered Will.

Judgment: The Supreme Court reinforced that these documents did not confer valid ownership. Since no legal sale occurred via a registered Sale Deed, the property was divided among all legal heirs according to standard inheritance law.

In short: Always double-check the Power of Attorney and related papers. Avoid “shortcut” deals through GPA or Agreement to Sell; only a registered Sale Deed makes you the real, legal owner of the property.

Conclusion

This blog clearly explains how property sale through GPA (General Power of Attorney) works, highlighting the difference between ownership and authority, and why a GPA sale is not a valid property transfer in India. It simplifies the legal process of transferring property ownership through a registered Sale Deed, outlines important buyer due diligence steps, and warns about common risks in GPA property transactions. Looking to draft or register a Power of Attorney or Sale Deed? Explore our Property Registration and Legal Drafting Packages to get expert help with end-to-end documentation and compliance.

Disclaimer: The information provided in this blog post is for general informational and educational purposes only and does not constitute legal advice. Property laws in India are complex and subject to change. Readers are strongly advised to consult with a qualified legal professional.