Loan against GPA property


Q1. What is a General power of attorney?

Ans. A general power of attorney as name implies is a legal instrument that is used by a person (granter) to confer authority on other person (grantee) to act on his behalf. The action done by GPA holder is deemed as if performed by the granter. This instrument doesn’t gives any ownership of immovable property to grantee.

Q2. Whether there is any provision in the Stamp Act or in the Registration Act which brings GPA equivalent to Sale deed?

Ans. No, there is no such provision in the Stamp Act or in the Registration Act which brings GPA equivalent to Sale deed.

Q3. Can I use GPA for transfer of my immovable property?faq1

Ans. GPAs are not meant for transfer of immovable property.

Q4. How can I register my General Power of Attorney?

Ans. GPA can be registered only with agreement to sale except in a case where there  blood relation. You have to pay duty equivalent to registration of sale deed in case of GPA other than blood relations. You can also register GPA between blood relations with stamp duty and registration fee. Two witnesses along with personal identification documents are to be present during presentation of documents.

faq4Q5. What is “Agreement to Sell” in property transactions?

Ans. An agreement to sell is one of the most important document in the process of sale and purchase of any property. This agreement contains the terms and conditions agreed between the parties, and binds them through law.

Q6. What do you mean by “Will”?

Ans. A Will is a legal declaration by which a person, known as the testator , names one or more persons on his behalf to own or manage his/her properties and assets after his/her death.

Q7. How can I register my Will?loan against GPA property

Ans.  You don’t need to pay any stamp duty for registration of will but, you will have to pay a small Registration Fee.The testator along with two witnesses need to be present during presentation.

Q8. What is the prevalence of registration of GPA, Agreement to sell, Will or SPA as against sale deeds?

Ans. Surprisingly, a larger number of sale deeds are registered as compared to the GPAs.

faq6Q9. What are risks of transactions based on GPA/SA/WILLs?

Ans.  Following are certain risks –

  •         This is illegal form of transfer of title or ownership in case of immovable property.
  •         The owner of property can any time transfer the immovable property to person other than the GPA holder and he can do so either by way of a sale deed or in form of a fresh GPA in other’s name. This will increase risk of forgery and cheating to many folds.
  •         You might be charged for transactions under black money as there is surely exchange of unaccounted money.
  •         There is chance of criminal disputes and criminal assaults on you due to lack of title and in that case your position in court will also remain legally disadvantageous to you.

Q10. Can Transfer of Immovable property title be done with SA/Will/GPA?faq5

Ans. No, you cannot transfer title of immovable property through GPA/SA/WILL’s transactions. Only valid mode of transfer of title in immovable property is registered sale deed /conveyance.

Q11. Should one avoid GPA in matters of transfer of immovable properties? Are loan against GPA property easy to avail?

Ans. Yes, surely one should avoid GPA for following reasons:

  •         Peace of mind – By executing proper deed of Conveyance/Sale deed, the buyer shall obtain the actual title of the property purchased. There faq2would be reduced risk of forgery and fraud by the local land mafias in form of multiple transfers of the same property to many individuals at the same time through illegal instruments like GPA/Sale Agreement and Will etc.
  •         Drastic Reduction in property litigation in courts – GPA/Sale Agreement and Will etc. transactions have resulted in incorrect property title trail thereby leading to increasing property litigation in various courts which take sometimes even more than a generation to get disposed of.
  •         Easy Loan approval – Application for Home Loans and Loan against Property in Banks are approved comparatively easily if one doesn’t put GPA property as mortgage. Otherwise loan against GPA property becomes difficult to avail.

Q12. Can I get a Home Loan/ Loan against GPA property?faq1

Ans. Usually, Banks and NBFCs don’t take GPA properties as mortgage in Home Loan and Loan against Property. We at LoanKuber can help you in getting your dream fulfilled of getting a loan with your registered GPA property as mortgage. You can easily get loan against GPA property from Loankuber.