Power of Attorney its Types & Precautions to be taken
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 details provided above are only guidelines. You are well advised to seek legal advice before executing a Power of Attorney)