Legal & Documents
What is a Power of Attorney?
A power of attorney lets someone act for you. It does not let them sell you the property. The Supreme Court said so in 2011, and people are still getting this wrong.
The short answer
A power of attorney authorises one person to act on another's behalf. It is useful, ordinary, and often necessary — especially for NRIs who cannot attend a registration in person.
But here is the thing that costs people their homes: a power of attorney does NOT transfer ownership of property. The Supreme Court held this decisively in Suraj Lamp & Industries v State of Haryana (2011). A "GPA sale" is not a sale.
What a power of attorney is
An instrument by which you (the principal) authorise someone else (the agent, or attorney) to act on your behalf.
Ordinary uses in property: signing a sale deed while you are abroad, appearing before a sub-registrar, collecting rent, managing a property while you cannot.
All legitimate. All useful. None of them transfers ownership.
The 2011 judgment that settled it
For decades, a practice grew up — particularly in Delhi and the NCR — of transferring property through a bundle of documents: a General Power of Attorney, an agreement to sell, a will, and a receipt. Cheaper than a sale deed. No stamp duty. No registration.
In 2011 the Supreme Court held plainly that such transactions do not convey title. A GPA is not a transfer. An agreement to sell is not a transfer. A will takes effect only on death.
The people who bought that way discovered they owned nothing. They had documents, and possession, and no title.
The practice has not entirely died. It is still offered, usually to buyers who are told it will save them stamp duty. It will save them stamp duty and cost them the property.
If anyone offers you a property "on GPA", the answer is no. Not a negotiation — no.
General vs Special
A General Power of Attorney (GPA) grants broad authority — often to do many things, sometimes open-ended.
A Special Power of Attorney (SPA) grants authority for one specific act. Sign this sale deed. Register this document. Appear on this date.
For almost every legitimate property purpose, an SPA is what you want. It does the job, and it does nothing else.
For NRIs — the practical case
This is the commonest legitimate use. You live in Dubai. You are buying a flat in Bengaluru. You cannot fly back for the registration.
So you give a power of attorney to a trusted person in India, who signs and registers on your behalf.
1. Use a Special POA, not a General one. Name the exact act and the exact property.
2. Execute it before the Indian Consulate in your country of residence. Or execute it locally and have it apostilled.
3. Send it to India and have it adjudicated and stamped within three months of arrival.
4. Register it at the sub-registrar where the property is.
5. Put an expiry date on it.
6. Revoke it in writing when the job is done — and register the revocation.
That last step is skipped by almost everyone, and it is the one that matters. An un-revoked GPA sitting with someone in India, years later, is a live risk.
Using one safely
- Give the narrowest authority that does the job. An SPA, not a GPA.
- Name the property specifically — survey number, flat number, address.
- Name the act specifically — "to execute and register the sale deed in respect of Flat 402".
- Put an expiry date on it.
- Register it if it concerns immovable property.
- Revoke it in writing when done, and register the revocation.
- Never give a POA to someone you would not lend money to. The authority is real, and it is exercisable without you.
GPA vs SPA
| General Power of Attorney (GPA) | Special Power of Attorney (SPA) | |
|---|---|---|
| Scope | Broad. Many acts, often open-ended. | Narrow. One specific act, or a defined set. |
| Typical use | Managing all of someone's property affairs while they're abroad | Signing one sale deed. Registering one document. Appearing once. |
| Risk to the giver | High. You have handed over wide authority. | Low. The agent can only do the one named thing. |
| Registration | Must be registered if it relates to immovable property and permits sale | Registration required for property transactions; otherwise notarised may suffice |
| Can it transfer ownership? | NO. See below — this is the important one. | NO. A POA is authority to act, not a transfer. |
| Revocable? | Yes, unless coupled with an interest. Revoke in writing, and register the revocation. | Yes. And it lapses once the specific act is done. |
| For an NRI | Risky. Use only with someone you trust absolutely. | Preferred. Name the act, name the property, put an expiry date on it. |
For an NRI who needs someone in India to complete one transaction: use an SPA, name the exact property, name the exact act, and give it an expiry date. A GPA is a much larger thing to hand to anybody.
Frequently asked questions
Can property be sold through a power of attorney?
A power of attorney can authorise someone to EXECUTE a sale deed on your behalf — that is legitimate and common, particularly for NRIs. But the POA itself does not transfer ownership. The Supreme Court held in Suraj Lamp & Industries v State of Haryana (2011) that a 'GPA sale' does not convey title.
Is a GPA sale valid in India?
No. The practice of transferring property through a General Power of Attorney, an agreement to sell, a will and a receipt — common in Delhi and the NCR to avoid stamp duty — was held not to convey title by the Supreme Court in 2011. Buyers who took that route discovered they owned nothing.
What is the difference between a GPA and an SPA?
A General Power of Attorney grants broad, often open-ended authority. A Special Power of Attorney grants authority for one specific act — sign this deed, register this document. For almost every legitimate property purpose, an SPA is what you want: it does the job and nothing else.
How does an NRI give a power of attorney for property in India?
Execute a Special POA before the Indian Consulate in your country of residence, or execute it locally and have it apostilled. Send it to India, have it adjudicated and stamped within three months of arrival, and register it at the sub-registrar where the property is. Give it an expiry date — and revoke it in writing, and register the revocation, once the job is done.
Can a power of attorney be revoked?
Yes, unless it is coupled with an interest. Revoke it in writing and register the revocation. Almost everyone skips this last step, and an un-revoked POA sitting with someone in India years later is a live risk.