Also known as GPA, SPA
NRIs and owners living elsewhere often sign a power of attorney so a relative can sign the sale deed, register a rent agreement or deal with the society. A special power of attorney limited to one property and named acts is safer and preferred by most registrars and banks. A general power of attorney gives wide authority and can be misused.
A power of attorney does not transfer ownership. The Supreme Court held in Suraj Lamp & Industries v. State of Haryana (2011) that sales made by GPA, sale agreement and will, without a registered sale deed, do not convey title. The attorney must still execute a registered deed on the owner’s behalf.
A power of attorney executed abroad usually has to be attested at an Indian mission or apostilled, then stamped in India within the time set by state stamp law.
Example
An owner living in Dubai wants to sell her 2 BHK in Kochi for ₹78 lakh. She signs a special power of attorney naming her brother, limited to selling that flat and receiving the price into her NRO account. It is attested at the Indian consulate, stamped in Kerala, and the brother signs and registers the sale deed for her.
Figures are illustrative, not market rates.
Questions about Power of attorney
Can property be sold on a power of attorney?
The attorney can sign and register the sale deed on the owner’s behalf if the power allows it. What does not work is a “GPA sale”, where the buyer receives only a power of attorney and agreement instead of a registered sale deed; that transfers no title.
Does a power of attorney end when the owner dies?
Yes. Under section 201 of the Indian Contract Act, 1872 an agency ends on the principal’s death, so the attorney can no longer act. Buyers should confirm that the owner is alive and has not revoked the power on the day of registration.
Sources
- Indian Contract Act, 1872 (agency) — India Code · accessed
- Powers-of-Attorney Act, 1882 — India Code · accessed
- Registration Act, 1908 — India Code · accessed
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