A power of attorney is the type of legal instrument or arrangement allowing a person to act on behalf of another. The concept of Power of Attorney has been provided under the Power of Attorney Act, 1882.
Section 1A of the Powers of Attorney Act, 1882,provides that the power of attorney affidavit would empower a specified person to act for and in the name of the person executing it.
As has been mentioned under Section 2 (21) of the Indian Stamp Act, 1899, Power-of-attorney would empower a specified person to act for and in the name of the person executing it.
Generally, POA power is provided for property matters, however a person can be entrusted to perform some other responsibilities as well, as discussed below. A POA is an authority provided by a person or grantor or a principal to an agent or agents. A POA holder could be understood as an agent as per Section 182 of the Indian Contract Act, 1872.
Types Of Power Of Attorney-
In India, there are two types of power of attorney: General Power of Attorney and Special Power of Attorney.
General Power of Attorney: such legal document which provides for the principal to authorize another person to act on his or her behalf for various issues. This is generally used for a wide range of activities such as managing property, signing legal documents, as well as conducting business transactions.
Special Power of Attorney: are legal documents granting the attorney or agent such specific powers or authority to act on behalf of the principal for matters mentioned in the specific POA. It shall be typically used for some specific tasks such as signing legal documents, managing property or representing the principal in court.
It is important to understand that both the above-mentioned POAs are revocable, meaning that these POA can be revoked or changed at any time.
Durable Power of Attorney: it would remain in effect even when the principal becomes incapacitated or unable to make decisions for self.
Medical Power of Attorney: is a legal document which allows an individual to authorize another person to make medical decisions on his or her behalf if they become incapacitated.
Limited Power of Attorney: gives the attorney particular permission to act on the principal's behalf for a set amount of time or for a set purpose.
NRI Power of Attorney: can be used by Non-Resident Indians (NRIs) to authorize another person to handle their legal and financial matters in India in their absence.
Important Clauses In A Power Of Attorney
The name, age, address and occupation of the principal.
The person to whom such power is granted, the agent or Attorney.
The reason for granting the power of Attorney.
The date and place of making the Power of Attorney
The date of termination of the power of Attorney in case it is limited by time.If no time frame has been given, it must be stated whether or not the POA is durable.
In case of a general POA, all such acts and areas where the power has been granted or such acts which are not to be performed by the agent, shall be mentioned specifically.
In Special power of Attorney, the specific or particular act or task which is needed to be done and completed by the Attorney shall be clearly mentioned. Also, the time limit under which such act is to be done is also to be specified.
How to register a Power of Attorney?
Creating a power of attorney in India would involve several steps and it is important to ensure that all legal requirements have been fulfilled-
Choose an Attorney: The first most decision would be to select the person who will act as your attorney or agent. This person must be trustworthy and shall be able to carry out the tasks mentioned in the power of attorney.
Draft the document: You must prepare the power of attorney agreement after selecting a lawyer. The document must include following details such as the name and address of the principal, the name and address of the attorney or agent, the powers or authority which are being granted, the date of the power of attorney and the signature of the principal.
Notarization: The POA document would then be notarized by a Notary Public.
Witness: The power of attorney document should be signed by two witnesses. The witnesses should not be related to either the principal or the attorney.
Registration: The power of attorney document would have to be registered with the Sub-Registrar of Assurances in the area where the property is located. It is important the power of attorney is registered, as unregistered power of attorney would not be valid. Also, it is important to keep a copy of the registered POA.
Conclusion
As could be inferred from the above discussion, a POA is transferred in cases where the principal is unable to perform certain functions. Transferring a POA is a very crucial step and should be done with watertight documents. As most of the POA are made for matters related to property, it is advised for such real estate power of attorney matters you contact poa attorney for the same.
Lead Indiaoffers you a team of experienced advocates who have been successfully assisting the clients for preparing different legal documents such as power of attorneys, will, etc. Therefore, if you wish to talk to a lawyer or seek free legal advice, you may contact us.
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