A buyer in Bengaluru was offered a plot in 2025 at a noticeably low price, on one condition: the deal would be done through a general power of attorney rather than a registered sale deed. The seller called it a common shortcut that saved on stamp duty. It is common, and it is a trap. Since a 2011 Supreme Court ruling, a power of attorney has been settled law as not a transfer of ownership at all. Buyers who take the shortcut often discover, years later, that they paid for a plot they never legally owned. This guide explains why, and what to do instead.

The short answer. A general power of attorney, or GPA, only authorises someone to act for the owner; it does not transfer ownership of immovable property. The Supreme Court, in the Suraj Lamp judgment of 2011, held that GPA sales do not convey title and that immovable property can be transferred only by a registered sale deed. The trade off buyers are tempted by is false economy: a GPA deal may look cheaper, but it leaves you without legal title, without a bank loan, and unable to resell or mutate the property cleanly.

What is a GPA sale, and why is it common?

A GPA sale is an arrangement where, instead of executing a registered sale deed, a seller gives the buyer a general power of attorney over the property, often bundled with an agreement to sell and sometimes a will. The buyer pays the price and takes possession, and the GPA lets them deal with the property as if they were the owner. It became common because it appeared to save on stamp duty and registration charges and to sidestep paperwork.

That apparent convenience is exactly what makes it dangerous. A GPA sale skips the one step that actually transfers ownership, the registered sale deed, while giving buyers a false sense that possession plus a stack of documents equals title. The saving is real in the short term and the risk is real forever. Understanding why the law treats a GPA this way is the key to not being talked into one.

GPA sales also cluster around exactly the properties a careful buyer should be wary of, ones where a clean registered sale is difficult because the title is unclear, the land is caught in some restriction, or the seller is not the full legal owner. In other words, the convenience story often hides a title story. When a seller pushes hard for a GPA route and resists a normal registered sale, the sensible assumption is that there is a reason a registered deed would be hard to execute, and that reason is your problem to uncover before you pay.

What did the Supreme Court actually rule?

In Suraj Lamp and Industries Private Limited versus State of Haryana, decided in 2011, the Supreme Court held that transactions in the nature of GPA sales, or SA, GPA and will transfers, do not convey title and do not amount to a valid transfer of immovable property. The Court was direct: immovable property can be lawfully transferred or conveyed only by a registered deed of conveyance. A general power of attorney or a will, on their own, do not confer title or ownership.

As a summary of the Supreme Court's position puts it, a general power of attorney is not equivalent to a sale deed and cannot transfer ownership, because it merely establishes an agency relationship. The ruling has been reaffirmed by the courts since. For a buyer, this is not an obscure technicality; it is the settled legal reason a GPA cannot make you an owner, however much you paid.

Why does a GPA not make you the owner?

A GPA does not make you the owner because it is, by its nature, an authorisation rather than a transfer. When an owner gives you a power of attorney, they are letting you act on their behalf; they are not handing over their ownership. The property still belongs to the person who signed the GPA, and that person, or their legal heirs, can in principle revoke it or assert their rights over the property later.

Ownership of immovable property changes hands only through a registered sale deed, the instrument the law recognises as conveying title. That is why a registered deed, not possession and not a bundle of unregistered papers, is the thing that makes a property truly yours. A GPA can look and feel like ownership day to day, but the legal foundation is missing, and that missing foundation is what surfaces at the worst possible moment.

What are the risks of buying on a GPA?

The risks are serious and they compound. Because a GPA sale transfers no title, you do not become the lawful owner, so you cannot freely sell, mortgage or gift the property. Banks generally refuse home loans against GPA properties, treating the title as defective, which also shrinks the pool of future buyers when you try to exit. You may be unable to mutate the property into your name in the revenue or municipal records.

Worse, the arrangement leaves you exposed to disputes. The original owner or their legal heirs can challenge the transaction, and a power of attorney can be revoked or lapse, especially on the death of the person who granted it. You can find yourself in litigation to defend a property you thought you had bought outright. For an asset this large, that is an extraordinary risk to accept in exchange for a stamp duty saving.

GPA versus a registered sale deed: how do they compare?

Set side by side, the two are not close substitutes, and the table makes the gap obvious.

The comparison is not really a choice between two ways of buying. It is a choice between buying and not buying. Only the registered sale deed actually transfers the property; the GPA leaves you holding a promise dressed as ownership, and a promise that the person who made it, or their heirs, can walk back.

When is a power of attorney legitimately used?

A power of attorney is a perfectly valid and useful document when used for what it is meant to do. The Supreme Court was careful to say its ruling does not affect genuine powers of attorney given for management or convenience, such as a family member handling a property while the owner is abroad, or an owner authorising someone to complete formalities on their behalf. Used this way, a POA is a tool of agency, not a device to dodge a sale deed.

The problem is only when a GPA is used as a substitute for a sale, to transfer a property without a registered deed. So do not confuse the two. If a seller offers you a genuine registered sale deed and uses a POA merely to help execute it, that is normal. If a seller offers you a GPA instead of a sale deed as the way you acquire the property, that is the arrangement the Supreme Court has ruled cannot pass ownership.

What should a buyer do if offered a GPA property?

If a property is offered on a GPA basis, treat it as a signal to insist on doing it properly, not a bargain to grab. Run through these steps.

1. Ask for a registered sale deed as the means of acquiring the property, not a GPA.
2. Understand that a GPA does not transfer title, whatever the seller or agent claims.
3. Check why a registered deed is being avoided, since the reason often reveals a title problem.
4. Budget for stamp duty and registration, and treat any saving from a GPA as a warning, not a win.
5. Verify the seller's ownership and the full title chain before committing any money.
6. Confirm your bank will finance the purchase, which requires a registered deed.
7. Have an independent lawyer review the title and structure the purchase as a registered sale.

Two of these steps have detailed guides. Our walkthrough on a legal opinion and title scrutiny shows what a lawyer verifies, and our guide on registering property on Kaveri explains how the sale deed is registered in Karnataka.

Frequently asked questions

Does a general power of attorney transfer property ownership?

No. A general power of attorney only authorises someone to act on the owner's behalf; it does not transfer ownership. In the Suraj Lamp judgment of 2011, the Supreme Court held that GPA sales do not convey title and that immovable property can be transferred only by a registered sale deed. A GPA is an agency document, not a conveyance.

Why is buying property on a GPA risky?

Because you do not become the legal owner. A GPA sale transfers no title, so you cannot freely sell, mortgage or gift the property, and banks generally refuse loans against it. You may be unable to mutate it into your name, and the original owner or their heirs can dispute a transaction you paid for, leaving you in litigation.

Can I get a home loan on a GPA property?

Generally no. Banks treat GPA based titles as defective because a GPA does not transfer ownership, and they typically require a registered sale deed before lending. This lack of financing also narrows your pool of future buyers, making a GPA property harder to resell. Insisting on a registered sale deed keeps financing and resale open.

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

Yes, when used for genuine management or convenience rather than as a substitute for a sale. The Supreme Court's ruling does not affect a real power of attorney given, for example, to a family member to handle formalities. The problem is only when a GPA is used to transfer a property in place of a registered sale deed.

Last updated 14 July 2026. PropNewz Team.