Power of attorney
Power of Attorney (POA) is a legal document that is used to give authority to someone else to perform your duties on your behalf.
A Power of Attorney is an instrument that is used to give authority to someone else to legally act on behalf of the principal. A power of attorney is an authority given by a formal Instrument whereby one person, who is called the principal, authorizes another person, who is called the attorney or agent, to act on his behalf. Although it can be of many types such as Irrevocable power of attorney, durable power of attorney, the specific power of attorney, lasting power of attorney, enduring POA, Limited POA etc.
The most commonly used in India are General power of attorney(GPA) & Special power of attorney (SPA).
This things done Owing to this reason, the power of attorney is now playing a vital role.
A General Power of Attorney for Property is a legal document that lets your attorney manage your finances and property
only while you are mentally capable. If you become mentally incapable of managing your property, the General Power of Attorney
for Property ends and your attorney can no longer act for you. Although it can be of many types such as Irrevocable power of attorney, durable power of attorney, the specific power of attorney,
lasting power of attorney, enduring POA, Limited POA etc. the most commonly used in India are General power of attorney (GPA)
& Special power of attorney (SPA).
In as much as the creature becomes busier, it becomes additional necessary for him to rely upon others for obtaining his things done.
as a result of this reason, the ability of power of attorney is currently enjoying an important role.
In the recent computer era, wherever commerce and business assured giant role to play, the requirement for getting in contracts of agreements in regard to business and different transactions become a standard and first feature of everyday life. due to individual became busier, it became a lot of necessary for him to rely on others for obtaining his things done. The agitated activities of the businessmen and industrialists have created the execution of a power of lawyer for delegation his functions. A "power of attorney" may be a legal document whereby one person offers another person the authority to act on his or her behalf as his legal representative and to create binding legal financial decisions on your behalf.
There are mainly 4 types
1.General power of attorney:
A general power of attorney gives to the power of attorney holder very large extends of powers to act on behalf of the executants. It covers many rights.
2.Special power of attorney:
A special power of attorney relates to a specific right, though it may contain several powers relating to the same rights. The power of attorney holders power of attorney expires on the completion of the transaction
3.Irrevocable power of attorney
The Power of Attorney Act does not state when a power of attorney is irrevocable. Power of attorney creates agency and therefore the law of agency is governed by the Contract Act. Power of attorney being an agency is essentially revocable like any other contract. The main fact that power is declared in the instrument granting it to be irrevocable, does not make it irrevocable. Power of attorney is irrevocable under below mentioned conditions.
- If such power of attorney is for an act which also affects the interest of the power of attorney holder.
- If the Power of attorney is executed for consideration in respect of property it cannot be unilaterally revoked, prejudicial to the interest of the power of attorney holder.
- After the power of attorney, the holder has exercised the authority given to him in respect of the acts exercised.
- If irrevocable power of attorney granted in relation to a subject matter in which the power of attorney holder has an interest, cannot be terminated by the death, unsoundness of mind or insolvency of the principle to prejudice such interest created by the executants in favor of the power of attorney.
Example: When Executants is the owner of a piece of land over which he has old house gives to a developer, an irrevocable power of attorney to develop such land and ultimately transfer the same in favor of a Society or such Association of Persons. Such a power of attorney is given for a valuable consideration. In the event, principle dies whilst the property is in the process of being redeveloped, such an irrevocable power of attorney granted by land owner (executants) to the developer (Power of attorney )can not be revoked or terminated and the developer is entitled to complete such redevelopment.
4.Durable power of attorney:
The type of attorney has specified the start date and end date. This power of attorney has in effect only among that both date. Non-durable or enduring power of attorney ends if you decide to cancel it of you’ve specified expiration date. But what do you do in the situation when the person who executes the POA becomes incapacitated? Does the power of attorney still hold?
In this instance, if you’d like your power of attorney to be upheld even if you become mentally incompetent to communicate your wishes or decisions, a durable power of attorney may be a fit. For example, if you fall into a coma but want your spouse to be able to make decisions on your behalf, you can denote that you’d like your power of attorney to be durable. This grants your spouse the ability to make decisions on your behalf, despite
General Power of Attorney is very much different from a Special Power of Attorney. The general power of attorney forever gives a general power of execute, whereas the Special power of attorney gives only a specific power to perform any
specific act or task.
- Revoked by the executants himself.
- The Executants die or Power of attorney holder dies.
- The Executants becomes mad or becomes bankrupt.
- The business for which the power of attorney holder was appointed is over.
- Mutually agreed upon by the executants and power of attorney holder.
- The right under the power of attorney if it released by power of attorney holder.
- If it's restricted for some time then after end time the power of attorney does not have any value.
Registration and stamp:
In many cases, there is no need to register. The question of registration arises only if a power is given for the sale of immovable properties. In Maharashtra, if a power of attorney is donated other than the close family member for sell of immovable property it must be registered with Registrar and not Notary. A power of attorney is to register at the office of the sub-registrar within whose jurisdiction the person giving the power resides at the time of execution of the document. Also, it will have Stamp duty @ 5% of the market value of the scheduled Property. If it is Family Power of Attorney (donated to close family member -blood relative) then it should be on stamp paper of value of five hundred rupees and it must be registered at sub-registrar office within whose jurisdiction the person giving the power resides at the time of execution of the document. Under the Bombay Stamp Act (in Maharashtra) a power of attorney given to a promoter or Builder for development of the property is
required to be stamped as a conveyance as per the market value of the property.