Should I Buy a House on General Power of Attorney?

Sujan Afi S

Every day you look out of the window your eyes catch the house that is next to your rented apartment. It is a small one-storied house with a garden where there are various kinds of plants and trees. You see a lady watering them. You see the beautiful butterflies and listen to the chirping of the birds. Your tensed mood gets relaxed once you get lost in the mesmerizing beauty of the house.

You think of buying a house. You do your research and consult with your relatives. One of them suggests you buy a property on power of attorney. However, some of your well-wishers discourage you to do so. You get confused! You are inexperienced in this matter. Hence, your search for a true guide.

So, here you are! Relax and go through the article to solve your doubts regarding whether you should buy a property on power of attorney.

What is General Power of Attorney?

It is the power given by an individual to a trustworthy person to complete monetary or lawful businesses for his/her sake. It is an expected practice in situations where the first proprietor can’t be present physically to handle the property. In such a situation, they give the GPA to a dependable individual who holds the option to do business for their sake.

The point that is to be noted is that the person who gets the power of attorney only works on behalf of the true owner of the property. He is not the owner of the property in any circumstances. Further, it is to be registered to the sub-registrar’s office to ascertain its legal validity. The duration of the power of attorney depends on the true owner of the property.

Buying Property on General Power of Attorney

Now, the question is whether that person can sell the property legally. The answer is simply NO. A GPA holder can never sell the property on the behalf of the owner in any circumstances. However, the trend of transferring the ownership of the property on GPA is quite common in India. Why?

This is because this kind of title transfer is advantageous for both the buyer and the seller of the property! As indicated by the law, the purchaser needs to pay stamp duty and registration charges to the government authority at whatever point the titles of a land piece are changed. The seller needs to bear the capital gains tax on the exchange. These charges can easily be avoided if a property is sold on GPA, thus, making a tremendous misfortune to the exchequer. The buyer is attracted to the deal because it appears to be a good deal as the amount that he/she needs to pay is comparatively low.

Thus, it is not advisable to buy any property on general power of attorney. You would not like it if someone informs you that the property that you have bought with your hard-earned money is legally someone else’s!

Thus, it is always better to buy a property from the rightful owner of the property, even if the charge of the entire procedure is high. You can have patience for some time and buy the property when you can afford it.

On a Final Note

I hope you have got a brief idea about the circumstances of buying a property on power of attorney. Still, if you want to know more about buying a property on GPA, you can drop a mail at to consult with our experts. 

Roodland India has a dedicated team that can guide you in the field of real estate. Our experts understand your desires and needs. Thus, they offer you the best possible solution to each of your problems.


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