No more property registration through GPA:
The Supreme Court has held that sale of leasehold or freehold property through general power of attorney (GPA) is invalid.To get title over the property,GPA agreements have to be converted into registered sale deeds.
Transactions of the nature of GPA sales or SA/GPA/Will transfers do not convey title and do not amount to transfer,nor can they be recognised as valid mode of transfer of immovable property,
The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title not create any interest in an immovable property, the bench said.However,the court took care not to instil fear among people who have resorted to GPA sale.It said it had merely drawn attention to the invalidity of transfer of title through GPA sales though these could continue to be treated as existing agreement of sale.
It said a lease could be validly transferred only under a registered assignment of lease and added,It is time an end is put to the practice of SA/GPA/ Will transactions known as GPA sales.
A lease is validly transferred only under a registered assignment of lease . The existing transactions which already took placing using GPA holds good and it is effective only from now.
This rule will curtail illegal or unauthorized property transfer and property related dispute there on.
