Transactions involving transfer of immovable property through General Power of Attorney (GPA), Agreement to Sell, and Will have historically created significant title risks.
Key Legal Takeaway
In the landmark Suraj Lamp & Industries case, the Supreme Court ruled that GPA/SA/Will transactions do not convey ownership title in immovable property; legal title transfers exclusively through a registered sale deed.
1. The Landmark Suraj Lamp Ruling Explained
A Power of Attorney is an agency creation instrument authorizing the agent to act on behalf of the principal; it is not an instrument of transfer of ownership under the Transfer of Property Act.
2. Automatic Revocation on Principal's Death
A standard Power of Attorney automatically terminates upon the death, mental incapacity, or bankruptcy of the principal under Section 201 of the Contract Act.
3. Irrevocable Power of Attorney for Consideration (Section 202)
Where an agency is coupled with interest (consideration paid to the principal), the agency cannot be revoked to the prejudice of such interest without consent.
4. Mandatory Verification for Real Estate Purchases
Buyers must ensure that the POA is registered, actively unrevoked, contains express powers to execute conveyance, and is supported by a living life certificate of the principal.
Frequently Asked Questions
Legal Guidance Note | RCS & Associates (Advocates & Lawyers in Roorkee & Haridwar)
Founder: Ramesh Chand Saini (Ex-Senior Prosecuting Officer, UP | M.A., MBA, LL.M.) | Member: Amardeep Saini (Notary & Advocate)
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