A Bengaluru buyer was offered a plot near Kanakapura Road at a tempting discount, on one condition: the deal would be done through a general power of attorney rather than a normal registered sale, to save on stamp duty and time. It sounded efficient. It was in fact a trap. Under a landmark Supreme Court ruling, a sale through a power of attorney does not transfer ownership at all, and a buyer who pays for one can end up with no valid title to the land. The discount was real; so was the risk of paying good money and owning nothing at the end of it.

The short answer. A general power of attorney, or GPA, is a document that authorises someone to act on another person's behalf. It is not a sale deed, and buying property through a GPA sale does not make you the legal owner. The Supreme Court has held clearly that only a registered sale deed transfers title to immovable property. The trade off some sellers dangle, a lower cost through a GPA route, is not a saving; it is a serious risk of paying for a property you do not legally own.

What is a general power of attorney?

A general power of attorney is a legal document by which an owner authorises another person, the agent, to act on their behalf, which can include managing or even selling a property. Used properly, it is a legitimate tool. An owner who lives abroad, for example, may grant a GPA so a trusted person can sign a registered sale deed for them. In that role, the GPA is a means to execute a proper sale, not a substitute for one.

The problem arises when a GPA is misused as if it were itself the transfer, with a buyer paying the seller and receiving a GPA and perhaps an agreement to sell, but never a registered sale deed. That arrangement, often marketed as a shortcut to save stamp duty, does not do what a sale is supposed to do: pass ownership.

It helps to separate two ideas that get blurred. Authorising an agent to act is one thing; transferring the property to a buyer is another. A power of attorney does the first and can never, on its own, do the second. When a deal is structured so that the buyer holds a GPA rather than a deed, the buyer has been given a tool of agency where they needed an instrument of ownership, and the two are simply not the same.

What did the Supreme Court actually rule?

In the well known Suraj Lamp and Industries case, the Supreme Court held that a general power of attorney is not equivalent to a sale deed and cannot by itself transfer ownership of immovable property. The Court made clear that immovable property can be conveyed only by a registered deed of conveyance, and that so called GPA sales, or combinations of an agreement to sell, a power of attorney and a will, do not confer title. The reasoning has been reiterated in later rulings as well, which have gone on to stress that even a will does not by itself create a valid title unless it is duly proved in law. The consistent thread across these judgments is simple and protective of buyers: shortcuts around registration do not create ownership, and the registered sale deed remains the one document that does.

For a buyer, the message is unambiguous. A GPA, even alongside an unregistered agreement to sell, does not make you the owner. Only a registered sale deed does. Any seller or broker presenting a GPA route as a valid way to buy is offering you a legally hollow transaction, whatever the paperwork looks like. The courts have been consistent on this for well over a decade, so it is not an untested opinion but a settled position you can rely on.

Why is a GPA purchase so risky for a buyer?

The risks are severe and practical. Because a GPA sale does not transfer title, you may pay full value and still not be the legal owner, which leaves you exposed if the original owner or their heirs later assert their rights. Such transactions are not a valid basis for mutation of the record into your name, so the civic and revenue records will not recognise you cleanly. Reselling later is hard, because a careful buyer and their lawyer will reject a GPA based title.

There is also the stamp duty dimension. GPA sales are often pitched as a way to avoid stamp duty and registration, but avoiding these is exactly what strips the transaction of legal effect. The apparent saving is the source of the danger. You are not buying a property cheaply; you are paying for something that does not give you ownership.

These risks are not merely theoretical worries for some distant future. They surface at the worst possible moments: when you try to raise a loan against the property, when you attempt to sell, or when a dispute over the land reaches a court. In each of those situations, the question asked is the same, whether you hold a registered sale deed, and a GPA is not an acceptable answer. The time to discover this is before you pay, not years later.

GPA sale versus registered sale deed, side by side

The table below contrasts what you actually get through each route.

When is a power of attorney perfectly legitimate?

It is important not to over correct. A power of attorney is a normal, valid instrument when used for its proper purpose: authorising someone to act for the owner, including to execute a registered sale deed on the owner's behalf. If a seller is genuinely represented by a GPA holder, the transaction can still be completely sound, provided it culminates in a registered sale deed executed by that authorised person and registered in your name.

The distinction is the outcome. A GPA used to sign a registered sale deed is fine. A GPA offered to you in place of a registered sale deed is not. Keep that single test in mind and you will not be misled by however impressive the accompanying paperwork looks. Always ask what document will finally make you the owner, and make sure the answer is a registered sale deed. This complements the point in our guide on the difference between an agreement to sell and a sale deed.

How do I protect myself from a GPA trap?

Insist on a registered sale deed as the one document that actually transfers the property to you, and treat any proposal to complete the purchase through a GPA alone as a reason to walk away or seek legal advice. Verify the seller's title independently, because a GPA route often hides an underlying title problem. If the seller is represented by a GPA holder, confirm the GPA is valid and check that a registered sale deed will still be executed and registered in your name.

Where the record needs updating after purchase, remember that a clean registered sale deed is also what makes your khata or mutation straightforward, a point we cover in our guide on khata transfer and e-Khata. For a purchase in a project such as SLV Sri Krishna Villas on Kanakapura Road, or any property, make the registered sale deed non negotiable.

A seven step checklist to avoid a GPA title trap

Run these before you pay for any property.

1. Ask which document will finally transfer ownership to you, and insist it is a registered sale deed.
2. Refuse any purchase offered only through a general power of attorney and agreement to sell.
3. Treat a GPA pitched as a way to save stamp duty as a serious warning sign.
4. If a GPA holder represents the seller, verify the power of attorney is valid.
5. Confirm a registered sale deed will be executed and registered in your name.
6. Verify the seller's underlying title independently before paying anything.
7. Take legal advice whenever a general power of attorney appears anywhere in the ownership chain of the property.

Frequently asked questions

Can I become the owner by buying property through a GPA?

No. The Supreme Court has held that a general power of attorney is not a sale deed and cannot transfer ownership of immovable property. Only a registered sale deed conveys title. If you pay and receive only a GPA, even with an agreement to sell, you do not become the legal owner and are left seriously exposed.

Why do sellers offer GPA sales?

GPA sales are often pitched as a way to save stamp duty and registration charges or to move faster. But avoiding registration is exactly what leaves the transaction without legal effect, so the apparent saving is the source of the danger. A lower cost through a GPA route is no bargain if it gives you no valid ownership.

Is a power of attorney ever valid in a property deal?

Yes, when used properly. A power of attorney can validly authorise someone to act for the owner, including executing a registered sale deed on the owner's behalf. What is not valid is using a GPA in place of a registered sale deed to convey ownership. Always ensure the deal ends in a registered sale deed in your name.

What should I do if a property is offered only on GPA?

Treat it as a red flag and do not pay against a GPA alone. Insist on a registered sale deed as the transferring document, verify the seller's title independently, and take legal advice. A GPA route often masks an underlying title problem, so the safest response is to require a registered sale deed or walk away.

Last updated 2026-08-17. PropNewz Team.