Enter your question here...my name is hari .
I own 2acers of land in hyderabad. I am taking a loan of 30 lacs from private person for my buisness expansion .He is asking to do land as AGPA to him for security of money. I want to know about AGPA. what precautions should be taken and i am going to return his money before one year. kindly advice me.
2 Answers from Attorneys
Dear Sir / Madam,
The party loaning you the money wants you to give them a General Power of Attorney (GPA) which may make a mention of your giving an unconditional right to them to sell, transfer or deal with the land in question, in any manner they deem fit in the event of your failure to repay the loan. Since you are confident of repaying back the loan within one year, you may agree to signing the GPA which clearly mentions that it is a fixed term GPA and automatically becomes null and void on expiry of the specified period on settlement of the loan. You may contact us for further advice and guidance in the matter.
AGPA means agreement cum general power of attorney,in your case,I hope there would be no mention about your loan in the so called AGPA. Generally AGPA is given for any development of the land and it seems your deed is an unconditional.So think wise before you make AGPA.
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