A General Power of Attorney (GPA) is a legal document that authorises one person, known as the GPA holder, to act on behalf of another, known as the principal. The GPA holder has the authority to carry out various tasks and make decisions on behalf of the principal, including property-related decisions. However, there is frequently confusion about whether a GPA holder can register property in their name. In this guide, we will look at the concept of GPA and how it affects property registration.
General Power of Attorney (GPA) Understanding:
• GPA Holder Authority: A GPA holder is authorised to act on behalf of the principal in various matters, including property transactions, agreement execution, financial management, and legal decisions.
• Specific vs General Power of Attorney: A specific power of attorney gives the holder limited authority to perform specific tasks, whereas a general power of attorney gives the holder broad authority to act on behalf of the principal in various situations.
• GPA Revocability: Depending on the terms specified in the document, a GPA can be revocable or irrevocable. The principal cannot revoke an irrevocable GPA, whereas a revocable GPA can be cancelled at anytime.
Registering Property in the Name of the GPA Holder:
• Legal Implications: In some cases, the GPA holder may attempt to register the property in their name, which may result in legal complications and disputes.
• Ownership vs. Agency: The GPA holder acts as the principal's agent and does not own the property. The authority to act on behalf of the principal does not grant the GPA holder ownership of the property.
• Violation of Legal Provisions: Registering the property in the name of the GPA holder without proper authorisation from the principal may be considered a violation of legal provisions, with legal ramifications.
Property Registration via GPA:
If the principal wishes to transfer the property to the GPA holder, the principal must execute a registered sale deed or gift deed in favour of the GPA holder.
• Stamp Duty and Registration: The principal's sale or gift deed in favour of the GPA holder must be duly stamped and registered following applicable state laws.
• Legal Compliance: All legal requirements must be met when transferring property via GPA, including the payment of stamp duty, registration fees, and adherence to property transfer laws.
Conclusion:
To summarise, while a General Power of Attorney (GPA) allows the GPA holder to act on behalf of the principal, it does not allow the GPA holder to register the property in their name. The GPA holder's role is that of an agent, and the principal retains ownership rights to the property. Any attempt by the GPA holder to register the property in their name without proper authorisation from the principal may result in legal complications and consequences.
Suppose the principal intends to transfer the property to the GPA holder. In that case, the principal must execute a registered sale deed or gift deed in favour of the GPA holder, following all legal provisions and requirements. Both parties must understand the legal implications and consult with legal professionals to ensure proper compliance with property transfer laws and avoid any potential legal issues.
