📄 AGPA vs Sale Deed – What’s Better for Buyers?

Understand the key difference between AGPA and Sale Deed in Telangana real estate before you invest in a plot.

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🧾 What is AGPA?

AGPA stands for Agreement of Sale with General Power of Attorney. It is a combination of two documents:

• Agreement of Sale: A promise between the buyer and seller that the sale will take place.

• General Power of Attorney (GPA): Gives legal rights to the buyer to manage, sell, lease, or register the property in the future.

🔹 Why is AGPA Used?

AGPA is commonly used when:

• The buyer wants to delay the final registration (Sale Deed)

• The layout is not fully approved

• The seller wants to avoid full registration at that stage (for tax or cost reasons)

It’s popular in semi-regularized colonies like:

• Rizwan Colony

• Shastripuram

• Ghouse Nagar

• Suleman Nagar

• Kishanbagh surroundings

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🧾 What is a Sale Deed?

A Sale Deed is a final, legally binding document that transfers full ownership of the property from seller to buyer. It is registered at the Sub-Registrar Office, and once done, the buyer becomes the legal owner of the land.

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⚖️ AGPA vs Sale Deed – Key Differences

Feature	AGPA	Sale Deed
Ownership	Not full ownership	Full and legal ownership
Registered at SRO?	Yes, but not a transfer of title	Yes, legally transfers title
Valid in Court?	Limited validity	Strong legal standing
Stamp Duty	Less	Full stamp duty (6–9%)
Risk of Fraud	Higher	Safer
Bank Loan Possible?	Usually No	Yes
Can Buyer Resell?	Yes (if AGPA includes right to sell)	Yes
Common in	Unapproved or developing colonies	Approved layouts, regular properties

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✅ Which One is Better for Buyers?

✔️ Choose Sale Deed when:

• The layout is approved

• You want full legal ownership

• You plan to build or take a home loan

• You want to avoid legal issues in the future

💡 Sale Deed is always the safest and most preferred way to purchase land.

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⚠️ Use AGPA only when:

• The plot layout is still pending approval

• Full registration is not possible at the time

• You're planning to resell later and don’t want full registration cost now

But in such cases, always:

• Add an Agreement of Sale with the AGPA

• Mention all terms clearly

• Get the document registered at the sub-registrar office

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🛑 Why AGPA Can Be Risky

• AGPA does not transfer title ownership like a Sale Deed

• In case of legal disputes, your claim may not be fully protected

• Banks will not give loans for AGPA-based properties

• Some layouts may be under litigation or LRS pending

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💬 Local Practice in Hyderabad

In areas like Bahadurpura, Rizwan Colony, and Shastripuram, many sellers offer AGPA plots to avoid high stamp duty. These are usually cheaper, but carry more risk.

If you go with AGPA:

• Understand it is temporary

• Plan to convert it to Sale Deed later

• Ensure all land documents (pahani, khata, layout plan) are checked

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📑 Final Advice

Buyer Type	Recommended Option
First-time buyer	Sale Deed only
Investor for short term	AGPA (with caution)
Buying in approved layout	Sale Deed
Buying in unapproved layout	AGPA (convert later)

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📌 Tip from HydZameen:

If you’re buying in AGPA format:

• Get it registered

• Attach a clear Agreement of Sale

• Make sure plot dimensions, seller name, and layout name are properly mentioned

• Take photos or videos of plot location

• Ask about LRS, AGPA refund, and resale options