Revisiting Informal Property Transactions: The Legal Status of GPA, Agreement to Sell, and Will after Recent Supreme Court Jurisprudence

The persistence of informal property transactions in India, commonly structured through a combination of General Power of Attorney (GPA), Agreement to Sell, and testamentary instruments, reflects a continuing tension between legal formalism and market practice. Despite the framework of the Transfer of Property Act, 1882 and the Registration Act, 1908 requiring registered conveyances for a valid transfer of ownership, such informal arrangements remain prevalent. They are often used to reduce transaction costs, avoid stamp duties, and bypass procedural delays, particularly in rapidly expanding urban and peri urban areas. This has led to a parallel system of property dealings that undermines certainty of title and exposes purchasers to significant legal risk. Recent Supreme Court jurisprudence, building upon the decision in Suraj Lamp & Industries Pvt Ltd v State of Haryana, has reaffirmed that GPA based transactions do not convey ownership and cannot replace a duly registered sale deed. The Court has also clarified the limited scope of Section 53A of the Transfer of Property Act, restricting it to a defensive equity rather than recognising it as a mode of transfer. These developments signal a clear judicial preference for formal compliance and documentary certainty, while also highlighting the gap between established legal doctrine and prevailing transactional realities. This paper examines the legal status of GPA, Agreement to Sell, and Will based transactions in light of these judicial developments. It analyses the implications of the Court’s approach for property markets, revenue considerations, and the protection of bona fide purchasers. It also evaluates whether the current legal framework adequately addresses the socio-economic conditions that sustain informal transactions, and considers the need for reforms that balance legal certainty with practical accessibility in property transfers.