Development cum gap agreement

He cannot give GPA to another for registration as he has no powers to do so. He is only authorised to register the flats.

The registered GPA says that 33% belongs to land owner and 67% belongs to Builder.  Now I am buying flat from land owner from his share.  Is land owner signature is sufficient on Sale deed agreement for my purchases. Please clarify. 

Parties can enter into an agreement for Development of land or immovable property, wherein there should be specific conditions about "pure development purpose" and nothing else. However, you can incorporate the ancilliary or incidental terms connected therewith. The parties and their lawyers are generally drawing more powers and authority in the development agreement and attempting to invoke "sweeping powers" and thereby sought to even establish the ownership. The Developers also seek General Power of Attorney, so that the Developer can execute the things according to what is liked by him. Even, the Developer based on Development agreement and GPA sought to trasnfer the right, interest and ownership to third party short circuiting the provisions of Transfer of property Act read with the Stamps Duty Act. There is a wide difference between various terms and definitions of "Developers" and "Builders", "True and lawful Owners" and  "Sellers and Purchasers".) 

However, there is no total prohibition to enter into a Development agreement. There is no total prohibition for even seeking "power of attorney". As far as the Development agreement is concerned, you can show the sole purpose of "Development" nothing else. As far as the power of attorney is concerned, you can seek "Specific power of attorney" for the purpose of developing the plot or property "disabling yourself from selling the property and recovering the value for the coming up units". That is substantially a right with the true and lawful owner. And not with you. As a developer, you can just receive and entertain the proposal from the prospective buyer to book the units. And those proposals will be materialized by the true and lawful owner. The owner cannot be by-passed at all.

(I guess that you will also execute the agreement to sell and power of attorney. For information, I may state that there was also a practice adopted, to seek physical possession of the property under agreement to sell with created General Power of Attorney. And the Sell Deed was avoided. The position of law is that the agreement to sell is a mere agreement for the purchase of property and no right, title and interest is derived. The Supreme Court of India has ruled that the ownership cannot be claimed, until it is conveyed by a sale deed. The Supreme Court has interpreted the provision of Trasnferof Property Act in case of Suraj Lamps Industries. Thus the practice of getting an agreement to sell and GPA are discouraged.)