Power of attorney and property title
last updated 2026-07-21
A general power of attorney (GPA) authorises someone to act for the owner — it does not transfer ownership. The Supreme Court held in the Suraj Lamp case (2011) that title to immovable property passes only by a registered sale deed. A property being 'sold' on a GPA is a title red flag to check carefully.
What a power of attorney is — and isn't
A power of attorney lets an agent act on the owner's behalf, including signing a sale deed. It is a tool of agency, not a transfer of ownership. A common trap is a "GPA sale" — where property is handed over on a general power of attorney plus an agreement to sell, without a registered sale deed. That does not make the buyer the owner.
What the Supreme Court held
In Suraj Lamp & Industries v. State of Haryana (2011), the Supreme Court held that a GPA / agreement-to-sell / will arrangement does not convey title or create an interest in immovable property. Under the Transfer of Property Act and the Registration Act, title passes only through a registered sale deed. The court has since reiterated these limits.
The risks of a GPA transaction
- No title. The buyer does not become the legal owner.
- Revocation. A GPA can lapse — for instance on the principal's death — unless coupled with an interest.
- Fraud. GPA chains are a known vector for misuse and disputed ownership.
Why it matters at auction
A bank auction itself transfers property through a sale certificate, not a GPA, so the mechanism is sound. But if a property's history — its chain of title — includes a GPA "sale", that is a weak link worth scrutinising, because ownership may never have passed cleanly. Spotting that kind of flag in the documents is part of the pre-bid homework AuctionScope is built to speed up. None of this is legal advice; for a high-value purchase, have the title examined by a professional.
Frequently asked questions
Can property be sold through a power of attorney?
A power of attorney can let an agent sign a sale deed, but a GPA by itself does not transfer ownership. The Supreme Court held in Suraj Lamp (2011) that title passes only through a registered sale deed.
Is a GPA sale valid in India?
A 'GPA sale' does not convey title or create an interest in the property. It is a red flag — a registered sale deed is the instrument that actually transfers ownership.
What are the risks of buying on a GPA?
You may not become the legal owner, the GPA can lapse (for example on the principal's death), and GPA chains carry a higher fraud and dispute risk. Insist on a registered sale deed.
Related terms
Sources
Rates, fees and procedures change — confirm the current position on the official portals below before you act.