How And When To Use Power Of Attorney?

When you live abroad, it becomes really difficult to manage your assets in India. The perfect instrument that you can use to manage your property in India is the Power of Attorney or PoA. You will be benefited by the advantages of PoA. This is also a reason even the Indian residents tend to use the power of attorney. People who have numerous properties, it becomes really difficult to be present everywhere to keep a check. Therefore execute POAs to delegate the responsibilities.

What Is Power Or Attorney?

In this, the owner grants the power or right to a legal representative. For example, if a person buys a property and physically cannot be present for the process of registration, he or she can delegate all these duties and rights to any friend or relative by registered PoA or power of attorney.

What Are The Different Types Of PoA?

There are mainly three types of power of attorney. They are:

1. Special PoA: In these kinds of PoA, the power of the legal representative is limited and restricted to a specific purpose. After the work is done, the PoA ceases.
2. General PoA: In these broad powers are given to the legal representative. He or she can make decisions on behalf of the owner. Also, they can carry out different activities on behalf of the other without any kind of restrictions.
3. Durable PoA: Unless it is cancelled explicitly, the PoA remains into effect. Also in some cases, a clause can be added to the legal document which states that the power of the representative will be valid even if the owner becomes incapacitated.

PoA In Real Estate

This can be used for different purposes in real estate as mentioned below:

• Exchange, mortgage, lease, sell, grant, collect rent, borrow
• Settle and manage the disputes.
• Perform the required acts by insurance companies, banks and enter into a deal with bonds, contracts etc.

How To Execute PoA?

Before going abroad, an NRI can execute the power of attorney from India. One needs to follow the steps below to give power of attorney to a legal representative.

• An NRI has to get the PoA drafted and should have it typed on a stamp paper that is non-judicial and has a value of around 100 INR.
• Two witnesses should also be present with the legal representative. They need to visit the sub registrars office.
• All should carry their valid ids while going to the sub-registrars office. Also, have the photocopy of the power of attorney with the original one.
• The photographs, signatures and also the fingerprints of the people will be collected in the office of sub-registrar.
• Collect the registered power of attorney on the due date from the office. This will take around 3-5 days after all the process is completed.

What To Do If You Are Outside The Country?

If you live in a different country and you can't visit India in future, do not worry. You can execute the process of the power of attorney or PoA from the domicile of your country through the Indian consultant or embassy.

Regulation Of PoA

This should include all the important powers for the execution. The power of attorney has to be given interpretation strictly and not extra right should be mentioned. For example, if the power of attorney has the words “right to lease” one can not attribute it to “right to sell”. The legal representative needs to work within the scope and can not go against or beyond the authority.

Buy property in India and give power of attorney to someone reliable. He or she will carry on with the other procedures on your behalf and soon you will be the owner of the property.