A buyer in Bengaluru was offered a plot at a tempting discount in 2025, with one catch: the sale would be done on a general power of attorney rather than a registered sale deed. The seller called it a formality that saved on stamp duty. What it actually meant was that, in the government's records, the plot would still belong to someone else, that person could revoke the arrangement or sell it again, and if they died their heirs could claim it. The discount was real, but so was the risk of paying full money for land that he would never truly own in the eyes of the law.

Buying on power of attorney is one of the most dangerous shortcuts in Indian property, and the law has been clear about it for years. This guide explains why a power of attorney does not transfer ownership, what the Supreme Court held, the specific risks a buyer faces, and the only safe way to take title.

The short answer. A general power of attorney does not transfer ownership of property; only a registered sale deed does, as the Supreme Court held in the Suraj Lamp case and as legal commentary such as this analysis explains. A power of attorney only creates an agency to act, so a so called GPA sale leaves the title with the original owner, cannot be mutated into your name, and can unravel through revocation, the owner's death, or a fraudulent second sale. The trade-off to remember: the discount on a GPA deal is the market pricing in a title you may never actually get, so insist on a registered sale deed.

Does a power of attorney transfer ownership?

No. A power of attorney only creates an agency relationship, giving someone authority to act on the owner's behalf, and it does not by itself transfer ownership. Ownership of immovable property passes only through a registered sale deed, which is the document the law recognises as conveying title. So when a property is sold on a power of attorney rather than a sale deed, the buyer gets possession and a piece of paper, but not legal ownership.

This distinction is the heart of the matter, and it is where buyers are misled. A seller may present a general power of attorney, an agreement to sell, and a will together as if the bundle amounts to a sale, but none of these, alone or together, transfers title the way a registered deed does. The right question is never whether the paperwork looks thorough, but whether a registered sale deed exists in your name, because that is the only thing that makes you the owner.

It is worth separating two very different situations that both involve a power of attorney. There is nothing wrong with a genuine attorney signing a registered sale deed on behalf of an owner who cannot attend in person, for example an owner living abroad, provided the power of attorney is valid and properly registered and the sale is still completed by a registered deed. The danger is the entirely different practice of treating the power of attorney itself as the sale, with no registered deed at all. The first is a routine and perfectly legitimate convenience; the second is the dangerous trap this guide warns against.

What did the Supreme Court say about GPA sales?

In the Suraj Lamp and Industries case, the Supreme Court held that a general power of attorney is not equivalent to a sale deed and cannot transfer ownership. The Court made clear that so called GPA sales do not amount to a sale, do not create ownership, and cannot substitute a registered deed of conveyance. Such transactions are also not valid for mutation in revenue records or for conferring ownership rights.

The reasoning behind the ruling protects buyers as much as the system. A registered deed creates an official, traceable record of ownership, ensures proper stamp duty is paid, documents the transaction against fraud, and settles clear title in the records. The GPA route skips all of that, which is precisely why it is cheaper and precisely why it is unsafe. After this ruling, treating a GPA as a way to buy property is buying against the settled position of the highest court.

What are the specific risks to a buyer?

The risks of a GPA purchase are severe and go to the root of your ownership. First, you never get legal title, so in government records the property still belongs to the person who gave the power of attorney. Second, a power of attorney is generally revocable, and the owner can cancel it during their lifetime, leaving you without enforceable rights. Third, under the law an agency ends on the death of the principal, so if the original owner dies, the power of attorney lapses and their heirs can claim the property.

The practical consequences compound these legal ones. Revenue authorities routinely refuse to mutate a GPA purchase into the buyer's name, so property tax and municipal records stay with the original owner, which cripples any later resale or redevelopment. Worst of all is the fraud risk: because the title still sits with the seller in the sub registrar's records, they can sell the same property again through a registered sale deed, and that registered deed will take precedence over your unregistered arrangement. You could lose both the property and your money.

Is there any protection if I have already paid?

There is only limited, defensive protection, and it is far weaker than ownership. If you hold a written agreement to sell, have paid the consideration, and have taken possession, you may be able to claim protection of your possession under Section 53A of the Transfer of Property Act. This can help you resist being evicted by the seller, but it is a shield, not a sword: it protects your possession, it does not make you the owner.

That gap matters enormously. A defensive right to stay in possession does not let you sell the property cleanly, mortgage it, mutate it, or pass clear title to your own heirs. So even in the best case, a buyer who paid on a GPA is left in a fragile, second class position compared with an owner holding a registered sale deed. The sensible response to being offered a GPA deal is not to lean on Section 53A as a backup plan, but to firmly decline the structure and insist on a proper registered sale deed instead.

How does a GPA sale compare with a registered sale deed?

The table below sets the two side by side on what actually matters to a buyer.

Read across and there is no genuine contest. On every single point that decides whether you actually own the property, the registered sale deed protects you and the GPA does not. The only column where the GPA looks attractive is the upfront cost, and that saving is exactly what you pay for with the risk of losing the property altogether.

What is the step by step for a Bengaluru buyer?

Work through this order whenever a power of attorney enters the picture:

1. Insist that ownership passes to you through a registered sale deed, not a GPA.
2. Treat a discounted GPA deal as a warning sign, not a bargain to grab.
3. Confirm the seller has clear registered title before you pay anything.
4. Where a genuine attorney signs for an owner, verify the power of attorney is valid and registered.
5. Check the encumbrance certificate and the khata are consistent with a clean title.
6. Ensure the property can be mutated into your name after the sale deed.
7. Walk away from any structure that leaves title in the seller's name after you pay.

Understanding this fits with the wider paperwork of a purchase. See why the registered deed sits at the end of the process in our guide to the sale agreement versus the sale deed, and confirm that a clean sale enables the municipal record with our explainer on the BBMP e-Khata. If you are evaluating a project such as Embassy Codename Yelahanka, insist on a registered sale deed as the basis of your purchase.

Frequently asked questions

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

You should not treat it as a purchase. A general power of attorney does not transfer ownership; only a registered sale deed does. The Supreme Court held in the Suraj Lamp case that GPA sales do not create ownership and cannot substitute a registered deed. A GPA deal leaves title with the seller, so insist on a registered sale deed instead.

Why is buying on GPA risky?

Because you never get legal title. The property stays in the seller's name in government records, the power of attorney can be revoked, and it lapses if the seller dies, letting their heirs claim the property. Revenue authorities usually refuse mutation, and the seller can fraudulently sell again through a registered deed that would take precedence over your GPA.

Does a registered sale deed protect me better than a GPA?

Yes, on every point that matters. A registered sale deed transfers ownership to you, is recognised for khata and mutation, survives the seller's death because the sale is complete, and cannot be revoked. A GPA does none of these. The only apparent advantage of a GPA is a lower upfront cost, which simply reflects the risk you would be taking on.

What is Section 53A protection?

Section 53A of the Transfer of Property Act can protect your possession if you hold a written agreement to sell, have paid the consideration, and have taken possession. It is a defensive right that helps you resist eviction by the seller, but it does not confer ownership, so it is no substitute for a registered sale deed.

Last updated 2026-08-23. PropNewz Team.