Delhi realty gets more attractive? 8 facts on Power of Attorney : The Delhi government has lifted the ban on registration of property transactions involving general power of attorney (GPA) in a bid to provide relief to residents living in group housing societies (on leasehold basis) and unauthorized colonies. The move primarily helped residents in the 895 illegal colonies the Delhi government regularized in September couple of years back. Here are some questions answered: What is a power of attorney: A legal instrument through which the seller gives the right to use and further sell the property to the holder of the power of attorney. Why property transactions are carried out through GPAs: Some properties, like flats constructed on leased land, or those in illegal colonies cannot be bought and sold. Transaction through GPA is common for properties not having a clear title. Why was property transaction through GPA banned? The Delhi government banned sale of properties through GPA in April 2012 following a Supreme Court order in October, 2011. The top court had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Why has the ban been lifted: Primarily to facilitate transaction of properties in the newly regularized colonies. Officials in Revenue department have said governments revenue collection had also come down following the ban on property transactions through GPA. Who can execute a GPA: Any registered property owner can execute a GPA in favour of their spouse, son, daughter, brother, sister or any other relative or person of his trust to manage his property or empowering him to execute any further deed of transfer including conveyance, sale and gift deed. Why is it necessary to register a GPA: To become the legal and lawful owner. What really happens is very few GPAs are registered to save taxes such as registrations and stamp duties. Will it help increase property transactions: Yes, but it may not result in proportionate higher revenue for the government. Around 20 per cent of property transactions were done through GPA transfers before the ban on it was imposed last year. Will it really help common buyers: Dwarka-based property advisor Birendra Singh told NDTV that banks do not give loans for property transactions done through GPAs. So, it will not lead to greater demand for such properties. (With inputs from agencies)
Posted on: Wed, 09 Jul 2014 07:10:02 +0000
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