Key takeaway
Ownership of immovable property in India passes only by a registered conveyance. An arrangement of a sale agreement, a General Power of Attorney and a will — a “GPA sale” — does not make the buyer the owner. The Supreme Court said so in Suraj Lamp & Industries v. State of Haryana (2011). A POA can still be used properly: the attorney executes and registers a sale deed on the owner’s behalf.
What a GPA sale is
To avoid stamp duty or restrictions on transfer, owners in some cities “sold” property by signing an agreement to sell, a General Power of Attorney in the buyer’s favour (or a nominee’s), and a will bequeathing the property to the buyer, while taking the full price. The buyer took possession but no sale deed was registered.
What the Supreme Court decided
- A sale of immovable property can be made only by a registered instrument (section 54, Transfer of Property Act).
- An agreement to sell does not itself create any interest in the property.
- A Power of Attorney is an instrument of agency; it does not transfer title.
- A will takes effect only on the testator’s death and can be revoked.
- Therefore SA/GPA/will transactions do not convey title and cannot be recognised as completed transfers.
The Court clarified that genuine transactions where a person gives a POA to a relative or trusted person to execute a sale deed are not affected, and that SA/GPA/will transactions entered into earlier may be used to obtain specific performance or regularisation where the law allows.
Using a POA correctly for a sale
- The owner grants a specific POA authorising sale and registration.
- The attorney executes a sale deed in the buyer’s favour on the owner’s behalf.
- The sale deed is stamped and registered.
If you bought on a GPA
- You are not the owner of record. Ask the seller (or their heirs) to execute and register a proper sale deed.
- If they refuse, consider a suit for specific performance of the agreement, subject to limitation.
- Check for regularisation schemes in your city.
- Your possession may have some legal protection under the agreement, but you cannot sell good title until the gap is fixed.
If you “sold” on a GPA years ago
You may still be the legal owner of record, with tax and liability implications. A GPA ends on your death, and a will can be revoked. Take advice on completing the transaction properly.
Frequently asked questions
Can a GPA holder sell my property without my knowledge?
If the GPA authorises sale, the holder can execute a sale deed. Revoke any GPA you no longer want to operate. See revoking a POA.
Is a notarised GPA enough for registration?
Registration requires the POA to meet the Registration Act’s authentication rules and state requirements; notarisation alone may not be enough.
Related guides
- All NRI legal guides
- How to sign a Power of Attorney abroad
- Selling property from abroad
- NRI Power of Attorney services
References
- Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana, (2012) 1 SCC 656, decided 11 October 2011
- Transfer of Property Act, 1882, section 54; Registration Act, 1908, section 17 — India Code
- Specific Relief Act, 1963
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
