What is Power of Attorney and Why Do You Need It

A power of attorney (POA) or letter of attorney is a written document authorizing a person to represent another person for any of his personal business, business or any legal act (ie. act on his behalf).

Power of Attorney in Hindi | Power of Attorney Hindi Meaning

पावर ऑफ अटॉर्नी (पीओए) या लेटर ऑफ अटॉर्नी एक लिखित दस्तावेज है जो किसी व्यक्ति को उसके किसी भी व्यक्तिगत व्यवसाय, व्यवसाय या किसी कानूनी कार्य (यानी उसकी ओर से कार्य) के लिए किसी अन्य व्यक्ति का प्रतिनिधित्व करने के लिए अधिकृत करता है।

According to the ‘Power of Attorney Act 1882’, POA is a legal document through which a person declares another person as his legal representative.

power of attorney

The declared representative is called the ‘agent’ and the declarant is called the ‘principle’. The agent can take decisions on behalf of the principal in all his legal, financial and other matters. He can also sign a deed against the principal. These decisions will be legally valid. The agent need not be a lawyer by profession. However, the agent cannot go outside the purview of the POA. If the principal is harmed by his decision, the agent will have to pay the damages.

Power of attorney can be drawn to transfer the ownership of immovable property. PoA in lieu of registry is generally used in situations where the property owner wants to avoid the process of going to court due to illness or other reasons or is not able to take important decisions but is mentally sound.

Types of Power of Attorney

There are two types of Power of Attorney depending on the purpose of the work. First, General Power of Attorney (GPA) and second, Special Power of Attorney (SPA). Broadly understood, the POA given for a single task is called ‘SPA’, such as finalizing a deal, whereas, through GPA, the agent can take decisions in many things. The GPA holder can perform various functions like property mortgage, sale-purchase, contracts, lease, settlement.

First of all, it is important to know what are Registry and GPA are? GPA can be given for any job. It is also called the General Power of Attorney. Through GPA, the right to operate a bank account and locker, the right to buy and sell a property and all other government works are given.

However, the GPA can be cancelled at any time and after such cancellation notice is given to the person in whose name the GPA is created. Also, through the paper, people have to tell that the GPA has been cancelled. There are some GPAs that are irrevocable, meaning they cannot be revoked. But in special cases, such GPA can also be cancelled. Similarly, there is a special power of attorney which is created for a specific purpose. The range of GPAs is wide.

Validation of POA

Power of attorney ceases to be valid after the death of the principal or agent. If the principal is not in a position to sign any legal document due to the impact of an accident, then the POA that was done earlier also expires. In addition, the principal can cancel the POA done earlier through a cancellation deed. The SPA is considered terminated upon completion of the work. It can be cancelled at any time with the mutual consent of both parties. It is pertinent to mention here durable POA.

A Durable Power of Attorney

Durable Power of Attorney means the POA in which the principal clearly states that the POA will continue even if he becomes incapacitated. However, in the event of the death of the principal, its validity also ceases. A durable POA is also called healthcare power of attorney in some places. Under this, the agent is empowered to take important decisions related to the medical care of the principal.

Registration of Power of Attorney

Registration of the General Power of Attorney is not mandatory. By the way, it can be given more importance when it is registered. Especially when it comes to real estate. In places where the ‘Registration Act 1908’ is applicable, this deed is registered with the sub-registrar, in other places, the attestation is done by a notary or administrative officer. It is necessary to have two or more witnesses at the time of its registration. After registration, the principal is called the executive and the recipient is called the GPA/SPA holder.

How To Make POA in Foreign?

A power of attorney can be prepared and registered abroad to deal with a property located in India. If the registration of POA has been done outside India, then it will have to be recognized by the District Magistrate within three months of the arrival of these papers in India. Suppose, an NRI living in the US wants to sell his ancestral property but does not want to come to India for the same. In such a situation, he can prepare a POA in the US and get it notarized.

In foreign countries, this deed can be made not on stamp paper, but on plain paper, but it will be necessary to get it notarized. But in India, it can be prepared on stamp paper only. To execute a POA abroad, one has to go to a notary, an Indian Council or a representative of the central government.

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