GPA Property Sales: What Bengaluru Flat Buyers Must Know

A buyer was offered a Bengaluru flat in 2026 at a price that seemed 20 percent below the market, on one condition: the deal would be done on a general power of attorney rather than a registered sale deed. On the surface it sounded like a clever shortcut to a real bargain. In reality, as the Supreme Court settled back in 2011, a sale on a power of attorney conveys no ownership at all, which is exactly why such flats are cheaper and exactly why a careful buyer should walk away from that structure. A price that can only be justified by an unsafe legal shortcut is not really a discount, it is a risk being handed to you.

The short answer. A general power of attorney, or GPA, only authorises someone to act on an owner's behalf, and it does not transfer ownership of a flat. The Supreme Court held in 2011 that a sale through a GPA, agreement to sell or will does not convey title, and that only a registered sale deed transfers ownership of immovable property. The trade off some buyers are tempted by: a GPA flat can look cheaper, but you would not own it, banks rarely fund it, and reselling it is very hard, so the discount reflects a fundamental defect rather than a deal you have cleverly found.

What is a general power of attorney and what does it actually do?

A general power of attorney is a document by which an owner authorises another person to act on their behalf, and it is an instrument of agency, not of ownership. A GPA can, for example, let a trusted person sign documents, manage a property or even execute a sale deed on behalf of an owner who cannot be present. What it does not do is make the holder the owner of the property. The powers under a GPA flow from the principal, the person who gave it, and they generally end if that person revokes the GPA or passes away, which is one reason a GPA can never give you the settled security that ownership does, since the very authority it rests on can disappear. So while a GPA has genuine and useful roles in a property transaction, it is a tool for acting on someone's behalf, not a way of transferring the property itself.

Does a GPA transfer ownership of a flat?

No, a general power of attorney does not transfer ownership of a flat. The Supreme Court, in its 2011 decision in the Suraj Lamp case, held clearly that a transaction structured as a sale through a GPA, an agreement to sell or a will does not convey any title or create any interest in immovable property. Ownership of immovable property is transferred only through a registered sale deed, as required under Section 54 of the Transfer of Property Act and the Registration Act. This means that if you pay for a flat and receive only a GPA, you have not become the owner in the eyes of the law, no matter how confidently the arrangement is described to you or how many supporting papers accompany it. The registered sale deed remains the only document that actually makes the property yours, and nothing else substitutes for it. This is not a technicality that a well drafted GPA can work around, because the courts have looked past the label and at the substance of what actually transfers ownership, and only a registered conveyance does that. Sub registrars and revenue authorities in several states have since been directed not to treat such GPA arrangements as transfers of ownership, which further narrows any comfort a buyer might have taken from them.

Why do GPA properties look cheaper, and what is the catch?

GPA properties often look cheaper precisely because they carry a defect that the price is quietly discounting. Since a GPA does not confer ownership, such properties do not have clear, marketable title, which is why banks and housing finance companies rarely accept them as security for a loan. That alone shrinks the pool of buyers to those paying cash and willing to take the risk, which depresses the price and makes any future resale slow and uncertain for you as well. Beyond financing, you inherit real exposure: the person who gave the GPA, or their legal heirs, may later dispute the transaction, sell the same property again to someone else, or simply revoke the authority, and because you never received a registered conveyance, defending your position can be difficult and expensive. The apparent saving is therefore the market pricing in a genuine legal weakness, not a gift. When you also account for the difficulty of ever selling cleanly, the true cost of a GPA flat can be far higher than the sticker discount suggests.

When is a GPA legitimate in a property deal?

A GPA is legitimate when it is used for what it is meant for, authorising someone to act, rather than as a substitute for a sale deed. For example, an owner living abroad may give a registered GPA to a family member to sign the registered sale deed and complete formalities on their behalf, and that is perfectly proper because the transfer still happens through a registered sale deed executed under that authority, with stamp duty and registration paid as normal. The problem arises only when a GPA is used in place of a sale deed, so that the buyer ends up holding a power of attorney instead of a conveyance. As a buyer, the safe rule is simple: a GPA in the transaction is fine as a means of executing the sale deed, but your own acquisition must always be completed by a registered sale deed in your name, never by the GPA alone. The table below contrasts the two.

How do I protect myself from a GPA sale trap?

You protect yourself by insisting on a registered sale deed in your name and treating any pressure to accept a GPA sale as a warning. The steps below keep your purchase on solid legal ground.

1. Insist that your purchase is completed by a registered sale deed in your own name.
2. Treat any offer to sell only on a general power of attorney as a serious warning sign.
3. If a GPA is used, confirm it is a registered GPA and that it authorises executing the sale deed.
4. Check that the person signing has valid, subsisting authority from the actual, living owner.
5. Run a full title and encumbrance check on the property regardless of what the GPA claims.
6. Ask your bank whether it will fund the property, since a refusal often signals a title defect.
7. Have a property lawyer review the chain of title and the draft sale deed carefully before you pay any advance.

What if I have already bought a flat on a GPA?

If you already hold a property only on a general power of attorney, the practical goal is to convert your position into a registered sale deed as soon as you can. Where the original owner is available and willing, the cleanest route is to have a proper registered sale deed executed in your favour, paying the applicable stamp duty and registration, so that title actually passes to you. Where that is not straightforward, for example if the owner is untraceable or unwilling, a lawyer can advise on the options, which may be limited and may involve litigation to protect your interest or to compel execution of a proper deed. It is also worth checking whether any regularisation or amnesty route applies to your specific situation, since these vary by state and change over time. The key point is not to leave the position unresolved, because the longer a GPA only holding continues, the harder it can become to secure clean title, to sell, or to pass the property on to your own heirs without dispute.

Frequently asked questions

Can I buy a flat on a general power of attorney?

You can pay, but you would not become the legal owner. The Supreme Court held in 2011 that a sale through a general power of attorney does not convey title. Ownership passes only through a registered sale deed, so a GPA leaves you without marketable title, without easy financing and exposed to disputes. Insist on a registered sale deed.

Does a GPA holder have the right to sell a property?

A GPA holder can act on the owner's behalf, including executing a registered sale deed, if the GPA validly authorises it and remains in force. But the GPA itself does not make the holder the owner, and it does not transfer title to a buyer. The actual transfer must still happen through a registered sale deed in the buyer's name.

Why are GPA properties cheaper in Bengaluru?

They are cheaper because a GPA does not confer ownership, so the property lacks clear, marketable title. Banks rarely lend against such properties, which limits buyers to cash purchasers willing to take the risk. That, plus the danger of a later dispute by the owner or their heirs, is what the lower price is quietly discounting.

Is a GPA ever acceptable in a property purchase?

Yes, when it is used to authorise someone to act, not as a substitute for a sale deed. An owner abroad may give a registered GPA so a relative can sign the registered sale deed for them. That is fine, because the transfer still happens through a registered sale deed. Your own acquisition should always be by registered sale deed.

For related legal checks, see our explainer on the legal heir versus succession certificate and our guide on A khata versus B khata, which also stresses that records are not the same as title. The Supreme Court judgment itself, in the Suraj Lamp case, can be read on Indian Kanoon. For a clean titled project such as Abhee Tranquila in Attibele, insist on a registered sale deed in your name.

Last updated 2026-09-18. PropNewz Team.