GPA sales in Delhi: why they no longer transfer ownership
For decades Delhi property changed hands through GPAs and agreements. The Supreme Court has ruled these don't transfer title.
Until 2011, many Delhi properties were sold through a combination of an agreement to sell, a General Power of Attorney (GPA) and a will — avoiding stamp duty on a registered sale deed.
What the Supreme Court said
In Suraj Lamp & Industries v. State of Haryana (2011), the Supreme Court held that such transactions do not transfer ownership. Only a registered sale deed (conveyance) transfers title to immovable property.
What this means for buyers
- A property held only on GPA is a red flag.
- The current holder may need to get a proper sale deed executed from the actual owner (or legal heirs).
- Banks generally won't lend on GPA-held properties.
What if your seller holds a GPA?
Ask the seller to regularise the title first. Sometimes this means locating the original owner or their heirs to execute a registered conveyance. Don't pay significant money until this is done.
Where GPAs are still fine
A specific power of attorney to let someone sign on your behalf — for example, an NRI owner appointing a relative — is legitimate, as long as the actual transfer is by a registered sale deed.
Read our title verification guide.
Why GPA sales were common
Before 2011, GPA sales let parties avoid stamp duty and the restrictions on transferring leasehold properties. Many Delhi properties still carry this history in their chains.
How to regularise a GPA chain
- Trace the original owner or legal heirs
- Have them execute a registered sale deed in favour of the current holder
- Pay the applicable stamp duty
- Update mutation and tax records
This can take time, but it turns an unsaleable property into a clean one.
Checking a chain for GPA links
Ask for every document in the chain, not just the latest. Look for agreements, GPAs, wills and receipts in place of registered sale deeds.
Frequently asked questions
Is a registered GPA enough? No. Registration of a GPA doesn't make it a transfer of title.
Can a GPA holder sign a sale deed for the owner? Yes, if the GPA authorises it and the owner is alive. A GPA ends on the death of the person who granted it.
