What are powers of attorney?
Ans:-There are two kinds of Power of Attorney.
General Power of Attorney (GPA)
Special Power of Attorney (SPA)
General Power of Attorney
A general power of attorney gives broad powers to a person or organization (known as an agent or attorney-in-fact) to act in your behalf. These powers include handling financial and business transactions, buying life insurance, settling claims, operating business interests, making gifts, and employing professional help. General power of attorney is an effective tool if you will be out of the country and need someone to handle certain matters, or when you are physically or mentally incapable of managing your affairs. A general power of attorney is often included in an estate plan to make sure someone can handle financial matters.
Special Power of Attorney
You can specify exactly what powers an agent may exercise by signing a special power of attorney. This is often used when one cannot handle certain affairs due to other commitments or health reasons. Selling property (personal and real), managing real estate, collecting debts, and handling business transactions are some of the common matters specified in a special power of attorney document.
General Power of Attorney is executed by a person in favour of another to act on behalf of him generally.
It may include management of property, Court matter/litigations, sale of mortgage of property or any other act.
Special Power of Attorney is executed to do a particular act.
Special Power of Attorney authorizing the agent to present the document executed by the Principal before the Registering Officer concerned and admit the execution thereof, requires to be attested by the Sub Registrar/Registrar in case the Principal resides in India except in Jammu and Kashmir.
If the principal resides in Jammu and Kashmir, then it has to be attested by the Magistrate. And if the principal resides outside India, then the power shall be attested by Consul/vice-Consul/Notary Public/Magistrate.
Power of Attorney holder is answerable to the principal and liable to give accounts to him.
Does an agent under a power of attorney get the property transfered in his name through the said power of attorney?
Ans:-No. It is wrong to say that ownership is transferred by getting General Power of Attorney. Persons purchasing property must get the sale deed registered. This principle applies to other kinds of transactions also.
Who can execute a power of attorney?
Ans:-A person who has attained the age of majority may execute power of attorney in favour of another person who has attained majority including family members like wife, husband, son, daughter, brother, sister, father and mother to act on his behalf.
If a power of attorney is executed to sell/develop/transfer in any manner whatsoever, of the immovable property then it needs to be registered duly.
How a General Power of Attorney gets cancelled?
Ans:-
GPA automatically gets cancelled on the death of Executant. Principal (Executant) may cancel it any time.
When is a power of attorney irrevocable?
Ans:- If the Power of attorney is executed for consideration in respect of property it cannot be unilaterally revoked, prejudicial to the interest of the agent (See Sec.202 of Indian Contract Act, 1872). It is better to get full and authentic opinion from your lawyer.
What is a special power of attorney?
Ans:-
Power of Attorney executed by a person in favour of another to act on his behalf for specific purpose is called Special Power of Attorney.
If a person is unable to go over to registry office to present a document executed in his favour or to admit execution of document executed (signed) by him, such power of attorney shall be authenticated or attested by a Sub Registrar. Otherwise they are not acceptable for the purpose of registration