What is Power of Attorney and how is it executed?

A Power of Attorney (POA) is a legal document that grants one person the authority to act on behalf of another in legal or financial matters. There are two types: General POA (for broad powers) and Special POA (for specific purposes). It is executed by signing the document in front of witnesses, with necessary notarization.

What precautions should be taken when executing a Power of Attorney?

When executing a Power of Attorney, ensure that the document is specific, clear, and accurately outlines the powers being granted. Take care to understand the implications and consult a lawyer to avoid misuse. It’s important to ensure that the person you're appointing as your agent is trustworthy.

What is the difference between General and Special Power of Attorney?

A General Power of Attorney grants broad authority to manage your affairs, while a Special Power of Attorney is limited to specific tasks or actions as outlined in the document. Special POA is often used for real estate transactions or other specific purposes.

How to execute Power of Attorney, type & precaution to be taken

Power of Attorney its Types & Precautions to be taken

Power of Attorney

A Power of Attorney, especially, when concerning real estate transactions, is an important document. Powers of Attorney may relate to large monetary dealings sometimes and extreme care and thought should go into preparing a power of attorney document. Here is some information that may help:

What is a Power of Attorney?

When you give someone Power of Attorney, you are granting an authority to someone else to act on your behalf and undertake acts, deeds and things that you specify in the Power of Attorney document.

Types of Powers of Attorney

There are several types of Powers of Attorney. Such as: General Power of Attorney and Special Powers of Attorney.

General Powers of Attorney:

A General Power of Attorney gives substantial powers for completing the transactions expected.

Special Power of Attorney:

Is a given for specific purposes only. These are defined in the document.

Valid Power of Attorney ingredients

The person giving and the person receiving the Power of Attorney must be competent. Minors and other persons disqualified by law cannot grant a Power of Attorney. POA should be given for legal purposes. POA must be duly stamped, notarized or registered or adjudicated, as the case may be. Powers of Attorney executed abroad have to be certified by an Indian Consulate Officer.oRegistration of POA is compulsory in cases of â€˜Special Power of Attorneyâ€™ that authorizes the holder of the Power of Attorney to present for registration, a document executed by the person giving the POA. Powers of Attorney given abroad have to be authenticated by an Indian Consulate official or a Notary. It should be stamped or adjudicated, within three months after receipt in India.

Some precautions to be taken while granting a power:

If at all possible, NEVER give a General Power of Attorney
Give only Special Power of Attorney and clearly state what the person who is getting the POA can do or undertake on your behalf
Check the wordings of the Power of Attorney document carefully and understand the consequences
Give POA only to someone who is honestly willing and able to perform the mentioned services for you

Remember, power of attorney cannot be given to someone to commit an illegal act.

The information provided here is for general knowledge only. Laws and regulations may change over time. It is strongly advised to consult a qualified lawyer for specific legal matters and to obtain the most up-to-date information on the current laws and regulations.