GPA Property Sales: Why a Power of Attorney Does Not Give You Title

A buyer in Bengaluru was offered a plot at a tempting discount, on one condition: the deal would be done on a general power of attorney rather than a registered sale deed, to save on stamp duty. The seller called it a normal GPA sale and said everyone did it. Had the buyer paid, he would have held a stack of documents and physical possession, but in the government records the plot would still have belonged to someone else. A power of attorney does not make you the owner, and the law is clear on this.

The short answer. A general power of attorney, or GPA, does not transfer ownership of property. It only authorises one person to act on behalf of another. The Supreme Court has held that title to immovable property can pass only through a registered sale deed, and that a GPA, an agreement to sell or a will does not by itself convey ownership. The trade off some sellers dangle is a lower cost by skipping the registered deed, but the price is that you never actually become the legal owner, so a GPA sale is a risk a buyer should decline rather than a shortcut to take.

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

A GPA sale is an arrangement where a property is handed over on the basis of a general power of attorney, often with an agreement to sell and sometimes a will, instead of a registered sale deed. Sellers and buyers have used it to avoid or reduce stamp duty and registration charges, to move properties with unclear title, or to transfer plots quickly without the scrutiny of registration. Because it can look cheaper and faster, it became common, especially for plots and in informal layouts.

The appeal is entirely about cost and convenience, and that is exactly why it is dangerous. Skipping the registered deed means skipping the very step that creates legal ownership and puts your name on the record. What feels like a saving at the time is really the removal of the protection you most need, which is why understanding what a GPA can and cannot do is essential before you agree to any such structure.

Does a power of attorney transfer property ownership?

No. A power of attorney is only an authorisation that lets one person act on behalf of another; it does not transfer ownership of the property. When you hold a GPA over a property, you may be able to act for the owner and even take possession, but in the government records the property still belongs to the person who gave the GPA. You have possession, not title.

This distinction is the heart of the matter. Ownership of immovable property is created by a registered conveyance, not by an authorisation to act. A GPA can be genuinely useful for signing and executing documents on someone's behalf, but treating the GPA itself as the sale is where buyers get hurt. If a deal asks you to accept a GPA in place of a registered sale deed, you are being asked to accept possession without ownership.

What did the Supreme Court actually rule?

The Supreme Court, in the well known Suraj Lamp and Industries case, ruled that title to immovable property cannot be conveyed through a general power of attorney, an agreement to sell or a will, in the absence of a duly registered deed of conveyance. In plain terms, only a registered sale deed can legally transfer ownership of property, and the GPA sale is not a valid mode of transfer. The mere execution of these documents does not pass right and title in the property.

This judgment settled the position across the country, including Karnataka, and it is why lenders, sub registrars and careful buyers treat a GPA sale as no sale at all for the purpose of ownership. A power of attorney can still be used legitimately to authorise a representative to execute a proper registered sale deed, for instance when an owner lives abroad, but it cannot stand in for the registered deed itself.

What are the risks of buying on a GPA?

The central risk is that you pay the full price yet never become the legal owner, because the records still show the original owner. That owner, or their heirs, can later dispute the deal, sell the same property again, or simply refuse to execute a proper sale deed. A GPA can also be revoked, and it generally lapses on the death of the person who gave it, which can leave you holding a worthless authorisation and a property you cannot defend.

The practical consequences follow from that. You will struggle to get a home loan against a GPA held property, to transfer the khata into your name, or to resell cleanly, because none of these work without registered ownership. If a dispute arises, your position is weak precisely because the law does not recognise the GPA as a transfer of title. Our guide to the difference between a sale agreement and a sale deed explains why only the registered deed completes ownership.

When is a power of attorney legitimately used?

A power of attorney is a normal and useful instrument when it authorises someone to act, not when it pretends to transfer title. A common legitimate use is an owner who cannot be present, such as a non resident, giving a power of attorney to a trusted relative to sign and execute the registered sale deed on their behalf. Here the GPA is a tool to complete a proper registration, and the ownership still passes through the registered deed, which is exactly as it should be.

So the test is simple. If the power of attorney is being used to enable a registered sale deed, it is legitimate. If it is being offered in place of a registered sale deed as the thing that supposedly makes you the owner, it is not. Keep that distinction firmly in mind, because sellers pushing a GPA sale often blur it deliberately.

How should a Bengaluru buyer protect themselves?

Protect yourself by insisting on a registered sale deed in your name as the basis of the purchase, whatever else is on offer. Verify the seller's title through the chain of deeds and the encumbrance certificate, and be wary of any deal that avoids registration to save cost. If a power of attorney is involved because the owner cannot attend, confirm it is used to execute a registered deed, and check it is valid and not revoked. The table below sets out what each document does.

Whether you are buying a plot or a flat, such as a home at Purva Zenium, the same rule holds: your ownership comes from the registered deed, not from a power of attorney.

What is the takeaway?

The takeaway is blunt: do not buy property on a GPA in place of a registered sale deed, however attractive the discount. The apparent saving on stamp duty is dwarfed by the risk of paying for a property you never legally own. A registered sale deed, backed by a clean title and encumbrance check, is what makes you the owner in the eyes of the law and the records.

If a seller insists on a GPA sale, treat that insistence itself as a red flag and walk away or demand proper registration. This guide explains why the law does not recognise a GPA as a transfer of title; acting on it, by insisting on a registered deed, is how you keep yourself safe. For the title layer, see our note on the encumbrance certificate and title search.

Seven step protection against a GPA sale

1. Insist on a registered sale deed in your name as the basis of the purchase.
2. Refuse any deal that offers a GPA in place of a registered sale deed to save cost.
3. Verify the seller's title through the chain of deeds and the encumbrance certificate.
4. If a power of attorney is used, confirm it is only to execute a registered deed.
5. Check that any power of attorney is valid, registered where required, and not revoked.
6. Confirm you can transfer the khata and get a loan, which need registered ownership.
7. Take a lawyer's opinion before paying, especially if a GPA is anywhere in the deal.

Do these checks before any money changes hands. The law is firmly on the side of the registered sale deed, but only if you insist on one. A GPA sale may look like a bargain, yet it leaves you exposed in exactly the way a property purchase should never leave you.

Does a general power of attorney transfer property ownership?

No. A general power of attorney only authorises one person to act on behalf of another; it does not transfer ownership of property. With a GPA you may hold possession, but the records still show the original owner. Ownership of immovable property passes only through a registered sale deed, so a GPA cannot make you the legal owner.

Is a GPA sale legally valid in India?

No. The Supreme Court has held that a general power of attorney, an agreement to sell or a will does not convey title to immovable property without a registered deed of conveyance. A GPA sale is therefore not a valid mode of transfer, and only a registered sale deed can legally transfer ownership of property to you.

What are the risks of buying property on a GPA?

You may pay the full price yet never become the legal owner, since the records still show the original owner, who can dispute or resell the property. A power of attorney can be revoked and usually lapses on the giver's death. You will also struggle to get a loan, transfer the khata or resell without registered ownership.

Can a power of attorney ever be used legitimately in a sale?

Yes. A power of attorney is legitimate when it authorises a representative to execute a registered sale deed on an owner's behalf, for example when the owner lives abroad. The ownership still passes through the registered deed. What is not valid is using the power of attorney itself, in place of a registered deed, as the thing that transfers title.

Last updated 2026-09-08. PropNewz Team.