Power of Attorney
A Power of Attorney (POA) is a legal document authorizing one party (agent) to act on behalf of other party (principal) for certain period of time or as described. The Principal can provide agent with wide-ranging and absolute legal authority to take decisions in terms of his property, investment, business transaction or medical care or can provide him with limited authority only with respect to certain matter. It is basically used in the events where the principal is not able to be present to sign certain important legal documents for financial transactions.
POA can be used in event of illness or disability of any person or if principal is not able to be present every time to sign or execute document. It is also used by NRIs to manage their property in India by authorizing any other person to act on his behalf in his absence. POA helps in decision making in the absence of true owner so helps to reduce security concerns as well in case of some business/commercial transaction, it is not feasible for principal every time to be present in every transaction so in that case executing POA is best option.
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Yes, POA signed and executed by person living abroad is valid. If a person living abroad is willing to purchase, sell or rent out a property based in India, it is difficult for him to visit India for such transactions or to attend the sub-registrar office in person to get the documents registered; he can authorize any person on his behalf by executing the power of attorney. By POA, he can appoint any of his friend, family member or his Attorney to act as his agent/attorney and get his documents registered in the registrar office for the transfer of property and the registration of property.
That as per provision of Section 14 of Notaries Act, 1952, Central Government is authorized to recognize notarizations and executions of POA done in other countries. So if any person who stays outside India and unable to visit here in near future, so he can execute POA from India through Indian embassy.
As per laws prescribed in India, it is not mandatory to register POA but where the POA is related to the transfer of immovable property or where it is required to give possession to attorney holder then it is advisable to register POA for more authenticity. Registered POAs are considered as legitimate and has given more authenticity in the eyes of law. If there is any dispute with respect to the property or probate in future, law gives registered POAs for privilege.
Yes, as the payment of stamp duty in case of POA is prescribed under Section 48 of Indian Stamp Act so if stamp duty is not paid the POA would not be submitted as evidence before any legal/public authority in India who is capable of admitting evidence. As well, the said POA could be seized by the said authority and that would be released on payment of prescribed stamp duty only and the said POA can only be allowed to submit as evidence after paying penal stamp duty 10 times the value of the original stamp duty amount to be paid.
Yes, you can authorize to make any or all of your financial decisions through POA such as with respect to banking transaction, real estate, accounts, insurance, etc. You can decide which powers you want to grant through POA with one significant exception.
No, you can authorize any competent adult person through power of attorney to act on his behalf. However, you need to be careful while selecting anyone as he might misuse the powers given to him. So it is always recommended to choose any trustworthy person for the same.
No. a Will already executed cannot be altered by agent who is authorized by POA, even the lawyer having authority through POA cannot change the Will.
POA should generally be given for limited period only to avoid its misuse by agent. So time period should be specifically mentioned by POA that can be renewed as per principal’s requirement.
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