Power of attorney is an authorization to a person by law to act or execute on behalf of a person and it has legal sanction. Power of attorney may be required for property dealings, letting property on rent and many other areas.
What Is Power Of Attorney (POA)?
A POA is an extensively used document. This document is used to help the holder of power of attorney to carry out certain acts on the Principal’s behalf. The principal is the person who has made the power of attorney. It is the discretion of the principal to decide on how much power he can delegate to the attorney holder and the act of the attorney holder is considered as if they are done by the principal.
A POA for registration is a deed executed by a person who is the principal. He gives the right to register his property on his behalf to another person.
For a rental property, the holder of a POA is authorized by the Principal to do all such acts or to carry out all legal obligations on behalf of the landlord. By a POA he/she may be authorized by the landlord to sign the Rent Agreement, lease deed etc., on behalf of the Principal.
What Is The Purpose Of POA?
Due to certain situations like ill health, a person living abroad or maybe due to shortage of time the said person may not be able to be physically present. In such situations the principal delegates the power to a known and trusted person. This person can also be a family member. He or she will look after the affairs of the principal. All the acts performed by the holder of attorney will be deemed to have performed by the principal.
What Details Are Included In POA Deed?
A power of attorney usually has a date and place in which the document is made apart from the details of the principal and the attorney. These details are the names, age, address, and so on. It will be explicitly mentioned in the document that the attorney has been authorized to carry out certain acts on his behalf.
Types of Power Of Attorney
There are two types of POA. It can be a general POA or special POA. A general power of attorney provides the person with all the powers to act in a general situation. A special power of attorney is given to execute for special purposes like collecting rents, etc.
Life of power of attorney
A power of attorney can be made to last a lifetime of both, the principal and the attorney holder or it can be revoked by the principal wherever he may think fit. Upon the death of either of the persons, the power of attorney shall stand cancelled.
Process of making power of attorney legally valid
Any person who is not the minor can be made the attorney. He should be of sound mind. To make the POA legally valid, it has to be signed by both the parties with two witnesses. The attorney is done on stamp paper of a proper value. It is not always necessary to register the power of attorney unless there is a question of transfer of property right.
Both persons should understand their rights and obligations. The principal shall agree to the acts of the attorney holder which is known as ratification.
Registration of power of attorney
When you buy an immovable property, it should be registered by the Sub-Registrar's office after payment of appropriate fees, and the fees will depend on the value of the property and the location, etc.
In one situation, a person or a principal gives a general power of attorney to a person whom he trusts. This person will ensure the sale of the property and will execute the deed of sale before the sub-registrar. The attorney shall sign the deed as if he is the owner. In this case, no attestation is needed.
In another case, the principal signs the document and receives the sales proceeds but he is unable to present himself before the sub-registrar. In this situation, he shall appoint a person as the attorney to present the document before the sub-registrar to do the legal formalities. This power of attorney has to be attested by the sub-registrar. If the principal is abroad, there must be an affidavit made and attested by a Notary Public of the country in which he is presently residing or by the consul of India.
The attorney may consult an advocate to ensure the smooth process of the entire process. The attorney must present the sale deed for registration before the sub-registrar and he would receive the considered sum of money from the purchaser and deposit the same in the bank account of the principal. In case of any dispute, the attorney shall present himself in the court of law. It is the duty of the attorney to handover the vacant possession of the property to the purchaser.
What are the steps of executing online, the Registered Rent Agreement on the strength of a POA?
The process of making online registered rent agreement on the strength of a Power Of Attorney for rental propety is the same as the procedure of online registration of rent agreement. There is the only requirement of the signed document of power of attorney in which the principal has authorized the attorney to act on his behalf.
Steps to prepare online rent agreement through power of attorney:
- Register Power Of Attorney
- Fill in the form including details of the property
- Uploading the power of attorney along with the declaration form
- Identifying the parties to the agreement
Also read : Power Of Attorney for Property in India