GPA Sale Explained: Why a Power of Attorney Is Not Ownership

For years many properties, especially in Delhi and other cities, changed hands through a sale agreement, a general power of attorney and a will instead of a registered sale deed. The Supreme Court has held that such transactions do not transfer ownership.

What the Supreme Court said

In Suraj Lamp and Industries v State of Haryana, decided on 11 October 2011, the Court held that immovable property can be legally transferred only by a registered deed of conveyance. Transactions of the nature of GPA sales or SA/GPA/Will transfers do not convey title and cannot be recognised as deeds of title, except to the limited extent of section 53A of the Transfer of Property Act. The Court also said its decision does not affect genuine transactions, such as a power of attorney given to a family member to manage property or to execute a conveyance.

The Supreme Court has repeated this in later cases, for example in 2019, saying that no right can be claimed on the basis of a transfer made through a power of attorney or will.

What it means for you

• If you hold property only through a GPA, agreement and will, you do not hold registered title.
• To sell or mortgage it, regularise it by a registered sale deed from the owner or their heirs.
• Delhi’s revenue department issued FAQs after the judgment stating that GPAs registered before 11 October 2011 are unaffected and can be regularised by obtaining a conveyance deed.
• A genuine power of attorney to manage property or sign a sale deed for the owner is still valid.

Please note: these templates are for general information and are not legal advice. Laws, stamp duty, notarisation and registration rules vary by State. Consult an advocate for your case. This is an independent website, not a law firm and not a government office.