Buying on a General Power of Attorney: Why a GPA Sale Does Not Give You Title

A retired banker in Bengaluru was offered a plot at a tempting price, with the seller explaining that the deal would be done on a general power of attorney to save on stamp duty. The banker, cautious by habit, asked a property lawyer first. The answer was short. A power of attorney would not make him the owner, and if the seller later changed his mind or passed away, the banker could be left holding papers that a court would not treat as a transfer at all. He walked away. The discount was real. So was the risk of owning nothing.

The short answer. A general power of attorney does not transfer ownership of property. The Supreme Court settled this in the Suraj Lamp judgment of 2011, holding that a power of attorney, a sale agreement or a will, alone or together, cannot convey title, and that immovable property is transferred only by a registered sale deed. The trade-off people are tempted by is a lower cost, because a GPA sale is pitched as a way to skip stamp duty and registration. The catch is that you end up without legal title, without a clean mutation, usually without a bank loan, and with a resale problem, so a genuine registered sale deed is worth every rupee of its duty.

What is a general power of attorney, and what is a GPA sale?

A general power of attorney, or GPA, is a document by which an owner authorises another person to act on their behalf, for example to manage or even to sell a property. On its own, it is a tool of agency, not a transfer of ownership. The person holding the GPA acts for the owner; they do not become the owner by holding it.

A GPA sale is something quite different and far riskier. It is an arrangement where a buyer pays the full price and, instead of a registered sale deed, receives a general power of attorney, often bundled with a sale agreement and a will. This package was popular because it appeared to move a property while avoiding stamp duty, registration and various restrictions. The problem is that appearance and legal reality part ways here, as the courts have made very clear.

Why does a GPA sale not give you ownership?

Because the Supreme Court has said so directly. In Suraj Lamp and Industries versus State of Haryana, decided in 2011, the court held that transactions in the nature of GPA sales, or sale agreement, GPA and will combinations, do not convey title and are not a valid mode of transferring immovable property. Such documents, singly or together, do not make the buyer the owner and are not a basis for mutation into the buyer's name.

The reasoning rests on the basic law of property transfer. Under the Transfer of Property Act and the Registration Act, immovable property above a token value can be transferred only by a registered deed of conveyance. A GPA is not a conveyance, so it cannot do a conveyance's job, however the parties label it. Reading our guide on the difference between a sale agreement and a sale deed alongside this makes the point concrete.

What actually transfers title to property?

A registered sale deed transfers title, and nothing less does. When you buy immovable property, ownership passes to you only when a deed of conveyance is executed and registered with the Department of Stamps and Registration, on payment of the applicable stamp duty and registration fee. That registered deed is what puts your name on the property in law and lets the record be mutated to you.

This is why the stamp duty a GPA sale tries to avoid is not a needless tax but the price of a real transfer. You can register a genuine sale deed through the state registration system, and the Department of Stamps and Registration portal at igr.karnataka.gov.in is the official reference for how registration works in Karnataka. A title backed by a registered deed is the whole point of buying, and it is exactly what a GPA sale does not deliver.

When is a power of attorney legitimate and useful?

A power of attorney is perfectly valid when it is used for what it is, an authority to act rather than a substitute for a sale deed. An owner who lives abroad, or who cannot attend registration in person, can give a power of attorney authorising a trusted person to execute the registered sale deed on their behalf. The sale still happens through a registered conveyance; the attorney merely signs it for the owner. Used this way, the arrangement is common and unremarkable.

The distinction is everything. A power of attorney that helps a genuine owner complete a proper registered sale is fine, while a GPA handed to a buyer in place of that registered sale is not. If you are relying on a power of attorney executed by an owner, check that it is properly executed and, where required, registered, and that it clearly authorises the specific sale, especially when it was signed abroad and needs proper attestation.

What are the risks if you buy on a GPA?

The central risk is that you never actually become the owner. Because a GPA does not transfer title, you cannot get a clean mutation into your name, you usually cannot raise a bank loan against the property, and your position rests on documents a court will not treat as a transfer. That is a fragile place to park a large sum of money.

It gets worse with time and events. A general power of attorney can be revoked by the person who gave it, and it lapses on that person's death, at which point your authority can simply evaporate and the legal heirs may claim the property. When you later try to sell, your buyer and their bank run into exactly the same title gap, so a GPA property is hard to exit at a fair price. A title problem you buy into does not fix itself; it waits.

There is a fraud dimension too. Because a GPA sale leaves no clean registered record of transfer, the same property can be sold on parallel powers of attorney to more than one buyer, each believing they have bought it. Registration exists precisely to prevent this, by creating a single public record of who owns what, checkable by anyone. Skipping it does not just weaken your title; it also exposes you to outright schemes that a registered sale deed would have shut down.

How do you protect yourself?

Insist on a registered sale deed, full stop. Verify that the seller holds clear, registered title, get a proper title check, and complete the purchase through a registered conveyance on which you pay the stamp duty and registration fee. If a seller pushes a GPA sale to save costs, treat that as a reason to slow down, because the saving is small next to the ownership you would be giving up. A clean project sold through registered sale deeds, such as Sumadhura Elysium in Panathur, is a safer path than a discounted plot on a power of attorney.

A written title opinion from an advocate is well worth its fee here, as our guide on the legal scrutiny report and title opinion explains. Keep in mind that a low headline price on a GPA deal usually hides these costs rather than removing them, and the stamp duty you save is small against the value of the ownership you forfeit. Follow the checklist below and you keep your money tied to real ownership rather than to a promise.

1. Ask whether the sale will be by a registered sale deed, and accept nothing less.
2. Treat any GPA sale offered in place of a sale deed as a red flag.
3. Verify the seller holds clear, registered title before you pay a token.
4. Get a written title opinion from an advocate on the chain of ownership.
5. If a power of attorney is involved, confirm it is genuine, valid and specific.
6. Pay the stamp duty and registration fee and register the sale deed.
7. Apply for mutation of the record into your name after registration.

Frequently asked questions

Does a GPA transfer ownership of property?

No. The Supreme Court held in the Suraj Lamp judgment of 2011 that a general power of attorney, a sale agreement or a will, alone or together, does not transfer ownership of immovable property. Title passes only through a registered sale deed, so a GPA sale does not make you the legal owner.

What is a GPA sale?

A GPA sale is an arrangement where a buyer pays for a property and receives a general power of attorney, often with a sale agreement and a will, instead of a registered sale deed. It was used to avoid stamp duty and restrictions. Courts do not recognise it as a valid transfer of ownership, so avoid it.

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

Yes, for a genuine purpose. An owner can give a power of attorney authorising someone to execute a registered sale deed on their behalf, which is common when the owner is abroad or unwell. That is legitimate, because the sale still happens through a registered deed. The problem is only when a GPA is used as the sale itself.

What are the risks of buying property on a GPA?

A GPA does not make you the owner, so you cannot get clean title, a mutation in your name, or usually a bank loan. A general power of attorney can also be revoked and it lapses on the death of the person who gave it. Reselling later is hard, because your buyer faces the same title gap.

Last updated 2026-09-01. PropNewz Team.