Power of Attorney refers to the authority to act for another person in specified or all legal or financial matters. In renting nomenclature, it is a legal deed that gives right or authority to one person (who is referred as an agent) to sign the documents on behalf of another (who is referred as the principal).
A power of attorney is a very important document as it gives authority to a trusted person who takes decision on one’s behalf and relieves him or her of his duties. Many people confuse the power of attorney with a will, but both these documents are two different legal documents and perform different functions. A will comes into effect only when a person dies and Power of Attorney comes into effect during a person’s lifetime and it ceases when he or she dies. One has to draft two different POA’s, one for property and for personal care.
There are different kinds of Power of Attorneys like –
1) General Power of Attorney (GPA)
The agent has the right to carry out all legal activities on the behalf of the principal without any restricting to a particular act or transaction.
It grants broad powers to the agent to make decisions.
2) Special Power of Attorney (SPA)
This is a restricted service, where the agent is given authority to certain or specific legal activities. These activities are defined in the document. The agent’s power of attorney ceases on the completion of the transaction.
3) Durable Power of Attorney (DPA)
The power of attorney is effective for a lifetime unless it is cancelled.
The specific clause in documents states that agent’s power is valid even if the principal has become incapacitated.
A power of attorney can be drafted or executed by any person who is eligible to enter into a contract with another person. As per Indian law, a Power of Attorney is a legal document and has to be properly written using the legal terms and it defines the objectives and responsibilities which the principal wants to authorize the agent to perform on his behalf.
An affidavit has to be filed will all the necessary original documents, which will be verified by the court and if satisfied, the court will register power of attorney by applying the seal and sign on it. This process will make the power of attorney valid. Then, it has to be signed and notarized/registered, where it is verified that the principal is competent at the time of signing the document and thus issue the power of attorney.
Revocation of Power of Attorney
The Power of Attorney can be revoked in the below cases:
1) Revoked by the principal
2) The principal becomes insane or becomes bankrupt or dies
3) Based on the mutual agreement between the principal and the agent
4) The transaction for which the agent was appointed is accomplished
A Power of Attorney is a legal document and has to be handled carefully. The principal should make sure that the agent is a trusted aide before he or she forms an agreement with him.
Incase of renting, Power of Attorney is used to appoint an authorized representative who registers the Leave & license agreement on your behalf. It’s a complicated process and it is recommended that instead of using Power of attorney, the client should use Anulom’s Remote registration service that uses Aadhaar based verification to register the Document in a Hassle free way and enjoy the same benefits without any risk or transfer of powers!