A Bengaluru buyer was offered a plot at a striking discount, on one condition. The sale would be done through a general power of attorney rather than a registered sale deed, to save on stamp duty and time. It sounded efficient. It was, in fact, a trap that the Supreme Court had shut years earlier. Buying property on the strength of a GPA does not make you the owner, and understanding why is one of the most important protections a buyer can have. This is the guide to what a GPA sale really is and why a registered sale deed is not optional.

The short answer. A general power of attorney, or GPA, does not transfer ownership of property. In Suraj Lamp and Industries versus State of Haryana in 2011, the Supreme Court held that a GPA is not equivalent to a sale deed and cannot convey title, and that only a registered sale deed legally transfers ownership of immovable property. The trade off a GPA sale offers, saving stamp duty and time, is illusory, because what you get is not ownership but a defective claim that a court, a bank, and the revenue records will not treat as title.

What is a GPA sale, and what did the Supreme Court say?

A GPA sale is an arrangement where property is purported to be transferred through a general power of attorney, often bundled with an agreement to sell and a will, instead of a proper registered sale deed. For years this was used to sidestep stamp duty and quick registration. The Supreme Court put a stop to it as a mode of transfer. In Suraj Lamp and Industries versus State of Haryana, decided in 2011, the Court held that such SA, GPA and will transactions do not convey ownership or title, and that a GPA is not equivalent to a sale deed.

The ruling was clear that only a registered sale deed can legally transfer title to immovable property. A GPA, however elaborate, is an authorisation, not a conveyance. This means that a buyer who pays for a property and receives only a GPA has not become the owner in law, no matter how the transaction was dressed up. The judgment reshaped property practice across the country precisely to protect buyers from this false sense of ownership, and it remains the settled position that every careful buyer should know.

Why does a GPA not make you the owner?

Because ownership of immovable property changes hands only through a registered instrument of transfer, and a GPA is not one. A power of attorney authorises one person to act for another, but it does not itself pass the property from seller to buyer. So even a registered GPA, on its own, leaves the ownership where it was. The person selling to you via GPA is, in the eyes of the law, still not conveying the property to you, only claiming an authority that does not amount to a sale.

This has hard consequences. A GPA based transaction is generally not valid for recording your name in the revenue records through mutation, and it does not give you the clean, marketable title that a bank, a court, or a future buyer will require. When you later try to sell, mortgage, or defend the property, the absence of a registered sale deed in your favour is the gap that unravels everything. The discount you took at the start becomes a liability you cannot easily exit.

There is a further danger unique to GPA arrangements. A power of attorney can, in some circumstances, be revoked by the person who granted it, and it typically comes to an end on that person's death. So a buyer relying on a GPA is exposed to the possibility that the authority behind the whole transaction quietly lapses, leaving the claim to the property resting on nothing. A registered sale deed, once executed and registered, does not evaporate in this way, because the property has actually passed to you. This fragility is one more reason the courts refused to treat a GPA as a substitute for a real conveyance, and one more reason a buyer should not either.

Is every power of attorney a problem?

No, and this distinction matters. The Supreme Court was careful to say that its ruling does not affect genuine powers of attorney granted for management or convenience, including within families. A power of attorney remains a valid, useful instrument when it authorises an agent to do something on the owner's behalf, such as an owner living abroad empowering a relative to sign documents. What the Court struck down was using a GPA as a substitute for a sale deed, not the legitimate use of a PoA.

The practical line to hold is this. A registered power of attorney can properly authorise an attorney to execute a registered sale deed on the owner's behalf, and that resulting sale deed conveys title in the normal way. That is legitimate. What is not legitimate, and does not make you an owner, is treating the GPA itself as the transfer. If a seller offers you a GPA in place of a sale deed, that is the arrangement to refuse.

What should a buyer do if offered a GPA sale?

Insist on a registered sale deed in your favour, full stop. If a seller cannot or will not execute a proper registered sale deed conveying the property to you, treat that as a fundamental problem rather than a paperwork preference. The reasons a seller pushes a GPA, saving stamp duty, avoiding scrutiny, or an inability to give clean title, are exactly the reasons you should be wary, because each of them can leave you exposed.

If the property is genuinely being sold by an attorney acting for an owner, verify the power of attorney and ensure the transaction concludes in a registered sale deed executed under that authority, not in the GPA itself. Have a lawyer confirm that the person signing has the power to convey and that the deed is properly registered. The goal is always the same, a registered sale deed in your name, because that, and not a GPA, is what makes you the owner.

Why does this matter so much for a home buyer?

Because your home is likely the largest purchase of your life, and title is what you are actually buying. A beautiful flat with a defective title is a poor purchase, because everything downstream, financing, resale, and your own peace of mind, rests on clean ownership. A GPA sale hands you the keys but not the title, and that gap can surface at the worst possible moment, when you need to sell, raise a loan, or defend against a claim.

The good news is that the protection here is entirely in your hands. The law has already decided that only a registered sale deed conveys ownership, so all you have to do is refuse to accept anything less. Pay the proper stamp duty, register the sale deed, and hold real title, rather than chasing a discount that trades away the very thing you are buying. As always with property, confirm the specifics of your transaction with a lawyer before you commit.

Your seven step GPA safety checklist

1. Insist on a registered sale deed conveying the property to you.
2. Refuse a GPA offered as a substitute for a sale deed.
3. Remember that a GPA does not transfer ownership in law.
4. If an attorney is selling, verify the power of attorney is genuine and registered.
5. Ensure the transaction concludes in a registered sale deed, not the GPA.
6. Pay the proper stamp duty and register the transfer.
7. Have a lawyer confirm clean, marketable title before you pay.

Frequently asked questions

Does a GPA transfer ownership of property?

No. In Suraj Lamp and Industries versus State of Haryana in 2011, the Supreme Court held that a general power of attorney is not equivalent to a sale deed and cannot convey title. Only a registered sale deed legally transfers ownership of immovable property. A GPA is an authorisation to act, not a transfer of the property itself.

Can I buy a property through a GPA in Bengaluru?

You should not accept a GPA in place of a registered sale deed. A GPA based sale does not make you the owner, is generally not valid for mutation in the revenue records, and gives you a defective, unmarketable title. If a seller offers it to save stamp duty or time, treat it as a serious warning.

Is every power of attorney invalid for property?

No. The Supreme Court's ruling does not affect genuine powers of attorney granted for management or convenience, including within families. A registered power of attorney can validly authorise an attorney to execute a registered sale deed on the owner's behalf. What is invalid is treating the GPA itself as the transfer instead of executing a sale deed.

What should I do if a seller insists on a GPA sale?

Insist on a registered sale deed in your favour, and treat a refusal as a fundamental problem. The reasons sellers push a GPA, avoiding stamp duty or an inability to give clean title, are the very reasons to be cautious. Have a lawyer confirm you receive a properly registered sale deed before paying.

For related Bengaluru reading, see our guide to the difference between a sale agreement and a sale deed, and our walkthrough on title search and legal due diligence. The ruling referenced here is Suraj Lamp and Industries versus State of Haryana, and you should confirm your transaction with a lawyer before you commit.

Last updated 26 July 2026. PropNewz Team.