10/02/2026
Please read this articles.
đź”” Supreme Court Alert:
An Agreement to Sell or General Power of Attorney does not confer property ownership. đźŹ
Only a registered sale deed transfers valid title.
👉 Read my detailed article below to understand the ruling and its implications.
🏛️ Agreement to Sell & GPA Do Not Confer Property Title: Supreme Court Reiterates
Property transactions in India often involve shortcuts like agreements to sell or general powers of attorney (GPA). The Supreme Court has once again made it clear: these documents do not transfer ownership of immovable property. Only a registered sale deed does.
⚖️ Legal Background
- Transfer of Property Act, 1882: An agreement to sell creates only a contractual right, not ownership.
- Registration Act, 1908: Title passes only through a registered instrument.
- Suraj Lamp Case (2011): Landmark ruling that GPA or agreement to sell cannot substitute for a sale deed.
📌 Supreme Court’s Key Observations
- Agreement to Sell → Creates a right to obtain a sale deed, but no ownership.
- General Power of Attorney (GPA) → Grants authority to act, but not title.
- Registered Sale Deed → The only valid instrument to transfer ownership.
The Court also noted that GPA sales are often used to evade stamp duty and registration fees, which undermines the integrity of property transactions.
🔍 Practical Implications
- Buyers: Always insist on a registered sale deed.
- Banks: Exercise strict due diligence before approving loans.
- Lawyers: Draft agreements carefully, clarifying that they don’t confer ownership.
- Courts: Continue discouraging GPA-based transfers to prevent parallel property markets.
âś… Conclusion
This ruling reinforces a simple but powerful principle: ownership of immovable property in India can only be transferred through a registered sale deed. Agreements to sell and GPAs may create rights or obligations, but they do not confer title.
Difference between sale deed and agreement to sell.
The Court explained the difference between a registered sale deed and an agreement to sell as follows :
"There is a difference between a sale deed and an agreement for sale, or a contract for sale. A contract for sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. While a sale is a transfer of ownership; a contract for sale is merely a document creating a right to obtain another document, namely a registered sale deed to complete the transaction of sale of an immovable property. Section 54 in its definition of sale does not include an agreement of sale and neither confers any proprietary rights in favour of the transferee nor by itself create any interest or charge in the property. If after entering into a contract for sale of property, the seller without any reasonable excuse avoids executing a sale deed, the buyer can proceed to file a suit for specific performance of the contract."
General Power of Attorney doesn't confer title
Further, the Court rejected the plaintiff's reliance on the Power of Attorney, stating that such documents also do not validate transfer, as “it would not ipso facto change the character of the document transforming it into a conveyance deed.”
"A power of attorney is not a sale. A sale involves transfer of all the rights in the property in favour of the transferee but a power of attorney simply authorises the grantee to do certain acts with respect to the property including if the grantor permits to do certain acts with respect to the property including an authority to sell the property," the Court explained.
The judgment added :
“it is essential to peruse the recitals of the General Power of Attorney, which is on record and pressed into service by plaintiff. The said GPA merely authorises the grantee to manage the affairs of the suit property, which includes the power to let out the property on rent, and create a mortgage of the same, etc. However, it is silent on the aspect of conveyance. Be that as it may. The recitals of the power of attorney would indicate the intent of the grantor is to limit the powers of the grantee to only manage the suit property, and not to create any interest in his favour, which is in consonance with the settled position of law as discussed above that a power of attorney is an agency by which the agent derives the authority or the right to enter into transactions on behalf of the principal. Even if we accept the validity of the Power of Attorney in favour of the plaintiff, still it does not confer a valid title on him with respect to the suit property.”, the court observed.