Is it safe to acquire property using General Power of Attorney?
A General Power of Attorney (GPA) empowers one person to manage property and make financial and legal decisions on behalf of another. But is it safe to use the GPA to purchase real estate? Can this document be cancelled in court if necessary? Because homebuyers must evaluate all subtleties when purchasing a house, here we dissects variables related to purchasing a property based on the GPA.
Purchasing a property using General Power of Attorney (GPA) is a popular method of transacting in Indian real estate. However, according to a 2011 Supreme Court of India judgement, transferring property through GPA is illegal. Regardless, what draws purchasers is the attractive offer that comes with this channel of property buying because, in most situations, owners are desperate to sell their properties. Thus, before signing on the dotted line, purchasers must understand all of the complexities of purchasing a house through the GPA and thoroughly assess the safety of such transactions.
What exactly is a General Power of Attorney?
It is the power provided by a person to an acquaintance to carry out specified financial or legal operations on his/her behalf. It is a popular practise when the original owner is unable to be physically present, such as when Non-Resident Indians (NRIs) or incapacitated owners are involved. In this situation, they provide the GPA to a trustworthy person who retains the authority to conduct out business on their behalf.
Applications of a General Power of Attorney
- To handle property-related concerns on behalf of the owner
- For handling funds on the behalf of the principle (the person issuing the GPA)
- For handling medical matters on behalf of the principal
- For executing out the ‘as and what’ indicated in the GPA deed
- A GPA is not the same as a Special Power of Attorney.
What is a Special Power of Attorney (SPA)?
A Special Power of Attorney is used when you give someone the express power to carry out a certain duty (SPA). For example, if you authorise someone to act as your legal adviser in a given matter, that person will only be allowed to represent you in that specific case.
A general power of attorney provides the agent extensive authority, but a special power of attorney limits the agent’s options.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
