Do you own a property with disputed title or in restricted areas? Are you exploring the option of buying a house or land with unclear title? Transaction in such properties face new hurdle.
The Supreme Court has ruled that sale transactions carried through general power of attorney will have no legal sanctity.
"A transfer of immovable property by way of sale can only be by a deed of conveyance (sale deed). In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred," it said.
The court also asked the states to reduce stamp duty rates to prevent undervaluation of property and stashing of black money. "A high rate of stamp duty acts as a damper for execution of deeds of conveyance for full value, and encourages sale agreement/general power of attorney/Will (SA/GPA/Will) transfers? When high stamp duty is prevalent, there is a tendency to undervalue documents, even where sale deeds are executed," the court said in its order.
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|A copy of the full judgment is at www.businesstoday.in/gpa|