Sale using gpa
Vivek Singh
(Querist) 27 February 2014
This query is : Resolved
We have an ancestral property that is still undivided among me and my brothers. My brother is asking to purchase my share from this property by GPA. He is only paying 50 % of the value and he is asking for GPA now itself. He says he will pay the remaining amount after 2 years but he will try to avoid paying the remaining amount as much as possible. I am currently in need of money for my business. I have some questions :-
It is an IRREVOCABLE NOTARIZED REGISTERED GPA.
1. If I give GPA will i give away all my rights ?
2.In case he does not pay the remaining amount, what can I do to recover my rights on the property ?
3. Can I still recover my property rights even if he sells/registers it to someone else before the 2 years period using the GPA ?
4. Can he just register the property to someone else using the GPA ? before the 2 years of timperiod is over so that even if he doesnot pay, I will still lose the property ?
5. Is there any other safer option to do this transaction to make sure that I get the remaining amount besides GPA. Can we write some other document.
Thanks in advance
PS : This pertains to the state Andhra Pradesh
Devajyoti Barman
(Expert) 27 February 2014
1&2. No, you can later revoke the GPA if you do not receive the balance money.
3. Yes bit very difficult.
4.Yes
5.Make a time bound payment of balance amount before which the GPA would not be put in force.
Sankaranarayanan
(Expert) 27 February 2014
Get assurance and concurrence by written
Rajendra K Goyal
(Expert) 28 February 2014
Whether the GPA is notarized or Registered.
1. Yes through irrevocable registered GPA rights are given.
2. GPA can be revoked.
3. It is very difficult.
4. Yes is the answer.
5. Consult a local lawyer.
T. Kalaiselvan, Advocate
(Expert) 02 March 2014
1. By GPA, you give power/rights to the GPA agent to sell or transfer the property to a third party.
2. If he is not paying the remaining amount, you can very well revoke the GPA or even cancel the sale deed made on your behalf.
3. Yes, but it will be cumbersome.
4. Yes, he can do so.
5. Better not to execute a GPA at all, instead enter into a sale agreement with him so that once he gets a party for purchase of the property in the later date, you get the money, cancel the sale agreement and execute the sale deed in favor of the purchaser.
Anirudh
(Expert) 02 March 2014
If you are in need of money, better try to sell to outsider.
In case your brother is interested in purchasing then he has to give the entire consideration to you before you register the property in his favour.
Giving GPA, getting 50% payment and then waiting for remaining payment to be made within another 2 years etc., will not work out successfully and you will regret later.
Therefore avoid doing any such thing. Try for straight sale by getting the full consideration.
Rajendra K Goyal
(Expert) 02 March 2014
Expert Anirudh ji has given a practical and useful advise in the given circumstances.
