“An average home buyer in India falls between the age group of 30-45.”
These statistics highlight how important the purchase decision for buying a property in India is for any Individual. Most of the population does not own their home until 35 years of age or more. Thus, when making the most significant lifetime investment, it is essential to do it correctly. Most importantly— the secure way!
There are many ways to purchase a property in India. One of the methods of buying property in India is through a General Power of Attorney (GPA). This article will cover some significant pointers regarding purchasing a home through GPA. We will also discuss how safe it is or not! Let’s dive into it.
Purchasing a property is a significant financial decision, and it is essential to ensure the process is smooth and safe. Here are some things that come with buying property through a General Power of Attorney in India:
An attorney can be registered at the sub-registrar office (SRO). The powers of the GPA are valid throughout the individual’s lifetime only. This will not pass on to generations. However, this power can also be revoked at any time (we will not go into that right now). If you are interested in purchasing a property through GPA, then read out the benefits of it further in the article.
GPA is a legal document that allows one person to appoint another person (referred to as the attorney) to act on their behalf in financial or legal matters. Does it seem like a risky move? Well, not really. This method has solved issues in purchasing property for so many people. Speaking specifically in the context of property purchase, a GPA can be used to appoint “someone” to act as an “attorney” to complete the transaction on the individual’s behalf. This can be useful in cases where the individual cannot be physically present at the time of the purchase.
In many property cases, the individual has moved to a country abroad or cannot travel due to health reasons. Getting the process done with the help of the GPA makes things easy for many people. However, using a GPA to buy property in India does come with certain risks and limitations. Let’s see how to make the most of this method while steering clear of the dangers.
Every property purchase process brings some charges along with it. After all, property transfer is a big thing for any home investor. These charges usually involve the following:
On the contrary, no such charges are filed with the transfer of property under GPA. This helped many people save a chunk of their money over the years. This was the reason behind GPA being popular in India since it saved money for both the buyer and the seller of the property.
However, there are many risks involved in this process, including fraud and more. This also happens in case the GPA could be more trustable to begin with. Thus, there are better ways forward than taking a land deal forwards through the GPA process, considering the risks attached.
Just like every useful thing has pros and cons, purchasing a property through GPA also has its advantages and disadvantages. Take a look at some things to consider before using a GPA to buy property in India:
It is important to ensure that the attorney appointed under the GPA is trustworthy and will act in the individual’s best interests. The person appointed as the GPA must not have any personal agendas or ill intentions regarding the individual. One of the primary risks of using a GPA to buy property is the potential for fraud. Moreover, it is also essential to ensure that the GPA deed is properly executed and registered to minimize the risk of fraud.
The GPA deed only grants the attorney limited authority to act on the individual’s behalf. The attorney does not have the full freedom to make any decisions on behalf of the individual without their consent. Moreover, it is essential to clarify the scope of the attorney’s authority before executing the GPA deed. For instance, the attorney may not have any authority to sell the property or make any alterations to it.
There may be legal issues that arise during the property purchase process. These issues may include some processes that the attorney may only be able to handle with the individual’s presence. In such cases, to address these issues, the individual may need to travel to India. This can be inconvenient and rather costly.
With all these considerations, some individuals may wish to revoke the GPA deed. Yes, that is possible indeed.
A GPA deed can be revoked at any time by the individual. This means that the attorney’s authority to act on the individual or principal’s behalf can be terminated. It can cause delays and complications in the property purchase process, but there is always a possibility to revoke the GPA at any time.
To sum everything up, giving someone any power on your property is not safe. If you are anywhere near making a purchase decision for your home, then get in touch with the best real estate company in your location.
It is advisable to carefully consider all the options before deciding to use a GPA to buy property in India and to seek legal advice as needed. While a GPA can be a useful method for buying property in India in certain unfavorable circumstances, it is essential to be aware of the risks associated with it.
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Owning a home is a keystone of wealth… both financial affluence and emotional security.Suze Orman