Purchase of property: Legal issues
Dear Sir/Madam, I have identified a property for purchase in Bangalore, Karnataka, but up on going through the documents I have learnt that the sale deed was executed based up on an unregistered GPA. Transfer of property goes as follows. 1) Allotment of a plot/site by the registered house building society to its employee in 1990. 2) Employee has given an unregistered GPA to another person(P1) who is neither his family member nor relative. 3) Based up on the unregistered GPA, GPA holder has sold the vacant plot via registered sale deed to another person(P2) in the year 1995. In that sale deed, name of the employee(allotee) is specified along with the GPA holder name as "Vendor". But only the GPA holder has signed in the sale deed. 4) Person(P2) has sold the vacant plot to person (P3) in the year 1996 via a registered sale deed. 5) Person (P3) is owning the property for the past 20 years. He has constructed a house in 2006. And he has all the documents in his name (khata and tax paid receipts, electricity bill, water bill e.t.c). 6) I am planning to buy from person P3. Kindly advise whether the property has clear titles. I am concerned about the property transfer done by the GPA holder with unregistered GPA in the year 1995. Your advise will be very helpful for me to take the decision. Thanks a lot in advance. Best Regards, Soma Sekhar.
In 1995 GPA registration was not complusory. It can be notorized. It is correct form if name of original employee is mentioned in sale deed. you have not mentioned whether 1995 sale deed was registered?
As far as your interest is concerned give public notice in news paper for intention of purchase of said property that execute the agreement for sale. to safe guard your interest you can take loan from bank which will take all due care before giving money to seller.
You need not worry. Prior to 2008-09 registration of GPA was not compulsorily required for execution of sale deed. Only recently has the court made it mandatory to have the GPA registered. As long as P3 has all the relevant documents, you can go ahead and buy the property.
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