GPA validity
naveenraj jain
(Querist) 16 June 2014
This query is : Resolved
Respected sirs
Six persons jointly purchased property from vendors. Now the buyers agreed to part ways before sale getting registered. One of the buyer X has capacity to pay back other buyers share n wanted to retain the property. X has repaid all others share by cash n got GPA unregistered executed.
Now the seller says he will register property only in names of agreement holder. X showed the unregistered GPA to seller. Seller wants to mention the GPA in the sale deed as condition.
Can X go ahead n do as seller wants.
adv. rajeev ( rajoo )
(Expert) 16 June 2014
Unless regd., sale deed is made in the names of purchasers, they cannot become the absolute owner. Only on the basis of the unregd., GPA X cannot purchase the property in his name.
Dr J C Vashista
(Expert) 16 June 2014
GPA is an authority granted by executor to attorney for some purpose(s)as convenented therein the document and not transfer of title,interest or claim in the property.
Devajyoti Barman
(Expert) 16 June 2014
In the sale deed the all sale agreement holders will have to be added as party.
Anirudh
(Expert) 16 June 2014
Before any useful answer could be given to your query, you need to clarify the following:
When you say that six persons purchased a property - please tell how each one of you contributed the money - by cash or by cheque?
Whether the Agreement to sell is registered or unregistered?
Whether the Agreement to sell contains any clause that the property will be registered in the name of the vendors or in favour of any of its NOMINEE(s)?
What does the unregistered GPA in favour of "X" says - does that it mention that the other 5 persons have got any amount from "X"?
naveenraj jain
(Querist) 16 June 2014
All six contributed by way of cash and again repaid by cash.
Sale agreement was unregistered.
Clause includes any of its nominees.
Yes in GPA amount is mentioned as repaid
Anirudh
(Expert) 16 June 2014
In that case, you would be advised to get the sale deed registered in favour of "X" on the basis of the clause in the Agreement to sell. (There is no need to produce the GPA or to take the help of GPA for getting the sale deed registered in favour of "X").
If GPA comes into picture in the Sale Deed, the payment received by you in cash would come into light and also the fact that you paid the amount by cash would come into light - all are impermissible under Income Tax Law.
IF GPA comes into picture, then the profit that the five of you made, if any, will be taxable as short term capital gain.
It is also not clear whether the property value is more than Rs.50 lakhs - in which case the purchaser is liable to effect TDS at 1% of the consideration and remit it to the Government.
R.K Nanda
(Expert) 16 June 2014
agree with experts.
Anirudh
(Expert) 16 June 2014
Now you will realise what a vast difference there will be in the answer in regard an half-information and a full information. Therefore whenever you pose a query, better reveal full facts.
ajay sethi
(Expert) 16 June 2014
well advised by Mr Anirudh
naveenraj jain
(Querist) 16 June 2014
Thank you sir.
Will try to be more in my query in future. Thanks once again for advice.
R.K Nanda
(Expert) 16 June 2014
no more to add.
T. Kalaiselvan, Advocate
(Expert) 17 June 2014
I too agree with the views expressed by expert Mr. Anirudh. Since it is an unregistered sale agreement, the same may be ignored and a registered sale deed may be executed by the vendor in favor X directly ignoring the previous issues like sale agreement and GPA etc to solve the problem amicably.
Raj Kumar Makkad
(Expert) 18 June 2014
Well advised by experts hence no more to add.
