Somewhere in a Bengaluru property search, a buyer is offered a deal that looks too good, a plot or flat at a noticeably lower price, sold on a general power of attorney rather than a proper sale deed. The seller frames it as a smart shortcut that saves stamp duty and time. What the buyer is rarely told is that the highest court in the country has already ruled on this arrangement, and the ruling is not on the buyer side. A general power of attorney is not a way to own property, and treating it as one is one of the most avoidable mistakes in the market.

The short answer. A general power of attorney, or GPA, only authorises one person to act on behalf of another. It does not, by itself, transfer ownership of immovable property. The Supreme Court held in Suraj Lamp and Industries versus State of Haryana, decided in 2011, that sales of immovable property must be made by a registered deed of conveyance, and that GPA, sale agreement and will based transfers do not convey title. The trade off a buyer is being sold is a lower price and lower duty in exchange for an ownership that is legally hollow, which is no bargain at all.

The rule to carry into any negotiation is simple. Title in immovable property passes by a registered sale deed, not by a power of attorney, however elaborate the paperwork around it looks.

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

A general power of attorney is a document by which an owner authorises another person to carry out acts on their behalf, which can include managing or even selling property in the owner name. It is a legitimate tool for genuine agency, for example when an owner living abroad appoints someone to complete a registered sale for them. What it is not is a transfer of ownership to the attorney holder. The attorney acts for the owner, not as the owner. So when a property is sold to you on a GPA, you are not being made the owner, you are at best being handed a document that lets someone act for the previous owner, an arrangement that can be revoked, disputed or simply fail when tested.

Why did the Supreme Court rule against GPA sales?

The court addressed a widespread practice of transferring property through a combination of a general power of attorney, an agreement to sell, a will and possession, used to avoid stamp duty and registration. In the Suraj Lamp case, the Supreme Court held that such transactions do not convey title and that immovable property can be transferred only by a registered deed of conveyance. The reasoning is that ownership of immovable property is too important to rest on unregistered documents that leave the public record unchanged and disputes wide open. For a buyer, the ruling is protective, it tells you clearly that the shortcut you are being offered does not deliver the ownership you are paying for.

What exactly is the risk to a buyer?

The risks stack up. A power of attorney can be revoked by the owner, and it typically lapses on the death of the owner, which can leave a GPA buyer holding a worthless authority. Because title never actually moved, the original owner or their heirs can later claim the property, and a rival buyer holding a registered sale deed will generally prevail over a GPA holder. You may struggle to get a home loan, since lenders want registered title, and you will struggle to resell, since the next careful buyer will refuse the same defective structure. The apparent saving on stamp duty is dwarfed by the value of an ownership you cannot defend, finance or cleanly sell.

Are there any legitimate uses of a power of attorney?

Yes, and it is important not to over correct. A power of attorney is perfectly proper as an agency tool, when a genuine owner authorises someone to execute a registered sale deed on their behalf, to manage a property, or to complete formalities the owner cannot attend to in person. The problem is not the existence of a power of attorney in a transaction, it is using the GPA itself as the instrument of transfer in place of a registered sale deed. So if a seller representative holds a valid power of attorney to sign a registered conveyance on behalf of the real owner, that can be fine, provided the sale is still completed by a registered deed and you verify the authority is genuine and current.

What should a buyer insist on instead?

Insist on a registered sale deed that transfers title to you from the rightful owner, full stop. If a power of attorney is involved, confirm it is valid, unrevoked and specifically authorises the sale, and ensure the actual conveyance to you is by registered deed. Read the title chain and the mother deed to confirm the person granting or acting under the power really owns the property, and cross check the encumbrance certificate. Understand how a registered sale deed differs from the mere agreement that precedes it, which we cover in our guide to the agreement to sell versus the sale deed, and how other instruments such as a gift differ, explained in our note on the gift deed versus the sale deed. The registered conveyance requirement itself flows from the Registration Act framework published on India Code.

How should the discount on a GPA deal be read?

Read the discount as a warning, not an opportunity. A GPA sale is cheaper precisely because the market knows it is defective, so the lower price is compensation for a risk the seller is transferring to you, not generosity. When you factor in that you may be unable to finance, resell or defend the property, the effective cost of a GPA deal can be total loss, which makes even a large upfront discount a poor trade. The disciplined position is to walk away from any structure that asks you to accept a power of attorney in place of a registered sale deed, however attractive the number attached to it.

How different instruments affect title

Seven point GPA safety checklist

1. Refuse any structure that uses a power of attorney in place of a registered sale deed.
2. Insist that ownership is transferred to you by a registered deed of conveyance.
3. If a power of attorney is used to sign, confirm it is valid, current and unrevoked.
4. Verify that the person granting the power actually owns the property through the title chain.
5. Cross check the encumbrance certificate for claims against the property.
6. Confirm your lender will finance the transaction, since GPA deals usually fail this test.
7. Read the lower price as a warning about defective title, not a genuine bargain.

Frequently asked questions

Does a general power of attorney transfer property ownership?

No. A general power of attorney only authorises one person to act on behalf of the owner. It does not transfer title. The Supreme Court held in the Suraj Lamp case in 2011 that immovable property can be transferred only by a registered deed of conveyance, not by a power of attorney.

Why are GPA property sales risky for buyers?

Because title never actually moves, the owner or their heirs can later claim the property, and a rival buyer with a registered deed will usually prevail. A power of attorney can also be revoked or lapse on the owner death. GPA buyers also struggle to get loans and to resell, so the apparent saving is outweighed by the risk.

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

Yes, as a genuine agency tool. An owner can validly authorise someone to execute a registered sale deed on their behalf or to manage a property. The key is that the actual transfer to the buyer is still done by a registered sale deed, not by treating the power of attorney itself as the transfer.

What should I insist on instead of a GPA sale?

Insist on a registered sale deed transferring title to you from the rightful owner. Verify the title chain and mother deed, check the encumbrance certificate, and confirm any power of attorney used to sign is valid and specifically authorises the sale. Treat a lower GPA price as a warning about defective title rather than a bargain.

Last updated 2026-07-03. PropNewz Team.