Power of Attorney is a document allowing a person (principal) to grant authority to another person (an agent) to act on behalf
There are several differences between General Power of Attorney (GPA) and Special Power of Attorney (SPOA). Many often find it difficult to choose between GPA and SPOA, exploring the difference can help you to choose the right document for your property transaction.
We are going to cover the following key differences between GPA and SPOA:
- Authority
- Agent
- Stamp Duty
- Duration
- Documents and Process
General Power of Attorney (GPA):
Authority: The principal grants broad range of authority to an agent.
For Example: Granting authority to Sign the Deed, Present the Deed in sub-registrar office, collect the consideration from buyer and deliver the possession to buyer
Agent: An agent should be reliable and capable of handling the property transaction on your behalf. We can grant GPA to anyone including family members and non-family members. Additionally, we can save stamp duty if we grant GPA to family members instead of non-family members.
The Family members such as Father, Mother, brother, sister, husband, wife, son and daughter
Stamp Duty: have different consequences on GPA based on buying, selling, family member, non-family member, and origin.
We are listing the pattern based on buying, selling, family members, non-family members and origin for your better understanding of stamp duty and this stamp duty is subject to Karnataka
- Buy a property + GPA execution in India + family member = stamp duty is Rs. 1000/executant
- Buy a property + GPA execution in India + non-family member = stamp duty is Rs. 1000/executant
- Buy a property + GPA execution in abroad + family member = stamp duty is Rs. 500 /executant
- Buy a property + GPA execution in abroad + non-family member = stamp duty is Rs. 500 /executant
- Sell a property + GPA execution in India + family member = stamp duty is Rs. 1000/executant
- Sell a property + GPA execution in India + non-family member = stamp duty is 5% of selling price or guidance value whichever is higher
- Sell a property + GPA execution in abroad + family member = stamp duty is Rs. 500 /executant
- Sell a property + GPA execution in abroad + non-family member = stamp duty is 5% of selling price or guidance value whichever is higher
The GPA execution for banking purposes like MODT Registration, Reconveyance Deed/ Discharge Deed Registration, the Stamp Duty is less irrespective Family member and non-family member. Refer to the pattern below:
- GPA execution in India + family member = stamp duty is Rs. 1000/executant
- GPA execution in India without consideration + non-family member = stamp duty is Rs. 1000/executant
- GPA execution in abroad + family member = stamp duty is Rs. 500 /executant
- GPA execution in abroad without consideration + non-family member = stamp duty is Rs. 500 /executant
Duration: Authority granted under GPA remains effective until the revocation, termination, specified duration in GPA or death of the principal
Documents and process: to execute GPA
- GPA Draft: outlines the scope of authority to agent and terms & conditions imposed by principal. The Draft should be filled and signed before final submission
- Identity Proofs: Valid identity proofs of the principal and agent such as Aadhaar/OCI and PAN
- Witnesses: Signatures of at least two witnesses and their valid identity proofs such as Aadhaar
- Registration: If the GPA is executed in India, it should be registered in a sub-registrar office near you
- Notary or Attestation: If the GPA is executed in abroad, it should be notarized or attested by authorized officials in the country in which you reside.
- Adjudication: GPA agent in India must get GPA adjudication in District Registrar’s office
Special Power of Attorney (SPOA):
Authority: The principal grants specific authority to an agent
For Example: Granting authority only to Present a Deed in sub-registrar office for registration. Unlike GPA, an agent does not have the authority to sign the Deed, collect the consideration from buyer and deliver the possession to buyer
Agent: An agent should be reliable and capable of handling the authorized specific task on your behalf. We can grant the SPOA to anyone including family or non-family members, there is no difference in stamp duty irrespective of family or non-family members
Stamp Duty: remains same for buying, selling, family member or non-family member, the only difference is in origin.
- SPOA execution in India, the stamp duty is Rs. 1000 per executant
- SPOA execution in abroad, the stamp duty is Rs. 500 per executant
Unlike the GPA, the 5% stamp duty does not apply in SPOA irrespective of selling a property and granting to non-family members. Listing the pattern below for your easy understanding of stamp duty
- Buy a property + SPOA execution in India + family member = stamp duty is Rs. 1000/executant
- Buy a property + SPOA execution in India + non-family member = stamp duty is Rs. 1000/executant
- Buy a property + SPOA execution in abroad + family member = stamp duty is Rs. 500 /executant
- Buy a property + SPOA execution in abroad + non-family member = stamp duty is Rs. 500 /executant
- Sell a property + SPOA execution in India + family member = stamp duty is Rs. 1000/executant
- Sell a property + SPOA execution in India + non-family member = stamp duty is Rs. 1000/executant
- Sell a property + SPOA execution in abroad + family member = stamp duty is Rs. 500 /executant
- Sell a property + SPOA execution in abroad + non-family member = stamp duty is Rs. 500 /executant
The SPOA execution for banking purposes, like MODT Registration and Reconveyance Deed/Discharge Deed Registration, the Stamp Duty is less irrespective of family member or non-family member. Refer to the pattern below:
- SPOA execution in India + family member = stamp duty is Rs. 1000/executant
- SPOA execution in India without consideration + non-family member = stamp duty is Rs. 1000/executant
- SPOA execution in abroad + family member = stamp duty is Rs. 500 /executant
- SPOA execution in abroad without consideration + non-family member = stamp duty is Rs. 500 /executant
Duration: Authority granted under SPOA remains effective until the completion of specified task in SPOA
Documents and process: to execute SPOA
- SPOA Draft: outlines the scope of authority to agent and terms & conditions imposed by principal. The Draft should be filled and signed before final submission
- Identity Proofs: Valid identity proofs of the principal and agent such as Aadhaar/OCI and PAN
- Witnesses: Signatures of at least two witnesses and their valid identity proofs such as Aadhaar
- Registration: If the SPOA is executed in India, it should be registered in a sub-registrar office near you
- Notary or Attestation: If the SPOA is executed in abroad, it should be notarized or attested by authorized officials in the country in which you reside.
- Adjudication: SPOA agent in India must get SPOA adjudication in District Registrar’s office
- Deed: If the principal authorizes the SPOA only to present the Deed in the sub-registrar’s office, the principal must execute and sign the deed. Unlike GPA, the agent cannot sign the Deed.
We assist GPA and SPOA, please write to us pgnproperties@gmail.com or Whatsapp to +91-97424-79020
Thank you for reading…
