Bought Property Through a GPA or Unregistered Agreement? It May Count for Nothing.
Across India — especially in cities like Delhi, Pune, and Hyderabad — a common practice prevails in real estate: buyers pay money, take possession, and rely on a General Power of Attorney (GPA) or an unregistered agreement to sell instead of getting a proper registered sale deed. Often this is done to save on stamp duty. The Supreme Court has once again — in multiple 2025 judgments — declared this practice legally dangerous.
What the Law Says
Under Sections 17 and 49 of the Registration Act, 1908 read with the Transfer of Property Act, 1882, any sale of immovable property worth Rs. 100 or more must be executed through a registered instrument of sale. If it is not registered, it cannot transfer title — period.
What Did the Supreme Court Say in 2025?
Supreme Court’s Ruling
Unregistered agreements to sell, even when coupled with actual possession and part-payment, do not convey title or create any interest in immovable property. GPA-based “sales” or SA/GPA/Will combinations are not valid transfers of ownership. An unregistered GPA also cannot authorise someone to sell property on behalf of the owner in a way that binds third parties with title.
In 2025 INSC 772, the Court also clarified that an unregistered document may only be used as evidence in a suit for specific performance — it cannot independently establish ownership. And if no specific performance suit is pending, even that limited use disappears.
In Ramesh Chand v. Suresh Chand (2025 INSC 1059, decided 1 September 2025), the Court went further: even a registered Will does not automatically confer title — it must be strictly proved under the Indian Succession Act, particularly when there are suspicious circumstances around its execution.
What This Means Practically
If you bought property in this informal manner — whether through a GPA, a “chain” of agreements, or a combination of these documents — your ownership may not be legally recognised. A subsequent buyer who buys the same property through a proper registered sale deed could legally outrank you.
Advocate’s Tip –
If you hold a GPA or unregistered agreement for any property, regularise the transaction through a proper registered sale deed immediately. The longer you wait, the greater the risk that the seller transfers the property to someone else — who will have better legal standing than you.
