What is Power of Attorney?
A power of attorney is a legal document in which you authorize another person (known as an agent or lawyer or actually a lawyer) and grant that person all the legal rights to act on your behalf. The authorized person can make a decision, enter into a contract, and also sell/buy property, etc. in your place as if you were doing. The issuance of power of attorney is an important legal document by a person to a third party. It gives him the right to process, disclose, and sign all relevant documents on his behalf, if:
1) He is unable to do any specific work, or
2) Appear before the court / any other authority, or
3) To execute a particular document
The person issuing the power of attorney is referred to as the ‘principal’, while the person to whom the principal is issuing it is the ‘attorney’. Through the power of attorney, the principal authorizes the attorney to perform all acts (carrying out all necessary steps), or appears and signs on all related documents on behalf of the principal.
Table of Contents:
- Purpose of letter of attorney
- General letter of attorney
- A special letter of attorney
- Permanent letter of attorney
1) Sample letter of attorney
2) Types of letter of attorney
- Registered letter of attorney
- Unregistered letter of attorney
- A revocable letter of attorney
- Stable letter of attorney
- How to draft a power of attorney?
- Power of attorney required
- How to register a power of attorney
- Revocation of Power of Attorney in India
- When can you revoke the power of attorney?
- When can you not return the letter of attorney?
- Laws governing the power of attorney
- How to revoke the letter of attorney?
- How to revoke General Power of Attorney?
- Mandatory legal notice for cancellation of power of attorney
- Who can revoke a charter if there are multiple owners or multiple agents authorized to be a Power of Attorney?
- When does the power of attorney system end?
- Is the execution of Power of Attorney valid in India?
- Frequently Asked Questions
Purpose of power of attorney: –
Each type of authority has different objectives, such as
- General letter of attorney – This is a comprehensive power of attorney where you give all the rights and powers that you have. The authorized person will be able to do your daily transactions, make payments, sign documents for you, etc.
- A special letter of attorney – This charter is executed for specific performance. In such a charter, the work entrusted to a lawyer is clearly mentioned and the powers and powers are limited. The attorney is bound to act by the conditions mentioned in the charter.
- Permanent letter of attorney – There are cases where you need to decide for someone when you are not physically or mentally able to decide for you. It becomes effective when the principal is disabled.
Sample of Power of Attorney:-
Types of Power of Attorney –
- Registered letter of attorney – When the Charter has a signature in front of the Registration Authority ie Additional District Sub-Registrar or District Sub-Registrar. The Registrar’s Office records this as a registered charter. At the time of the revocation of a registered power of attorney, one is required to draft a revocation of the Charter of Rights. It is to be registered at the registry office.
- Non-Registered letter of attorney – This is a Power of Attorney not registered before the Registry Office and signed only by the parties or notarized by the notary public.
There are two types of power of attorney in relation to repatriation.
- A revocable letter of attorney – If power of attorney can be canceled at any time after execution as per the power of attorney. This power of attorney can be revoked by signing a revocation signature.
- Stable letter of attorney – “If there is a clause in the Power of Attorney Deed which clearly states that you waive your right to revoke, then it makes the Charter irrevocable ie cannot be revoked only at the will of the Principal is. For such an authority letter, the principal. A public notice must be given through two national and regional respected dailies and later contact the Court of Law to conclude the charter. “
Note: It is pertinent to mention here that Mukhtarnama will not be treated as immutable only because the clause of immutability is mentioned in the Deed of Mukhtarnama.
How to draft a power of attorney?
The letter of attorney can be an oral or written document, however, it is recommended to be a written authority letter that clearly states its purpose. There are a plethora of free templates available online to use, but it is highly advisable to refrain from using them because if your charter has not clearly stated its purpose and is full of ambiguity, So it can create legal issues and can be easily challenged. It is therefore always recommended to consult a lawyer who can draft a letter of Attorney for your needs.
Power of attorney required:-
The Power of Attorney should include details such as the name, address of the principal, and agent along with the date and place where the authority letter is being executed. Also, it should
1) Describe the types of powers that are being delegated and whether the Charter in general, specific, durable, or irrevocable.
2) List the powers that are being given to agents, custody, property management, healthcare, etc.
3) Include liabilities of principal, agent, or a third party, if any.
4) Signature of the parties concerned with the notary.
How to register a power of attorney?
For Indian residents, the Power of Attorney registration process is as follows.
Step 1: Draft the Power of Attorney on a stamp paper of value based on your state with all the terms and conditions.
Step 2: Make sure the deed is signed by you and the lawyer and notarized.
Step 3: Go to your local registrar or sub-registrar office to submit all the supporting documents like Aadhaar card, photograph, residence proof, etc. in original and photocopy with 2 witnesses (ensure that the photocopy is a gazetted one. Verified by an official)
Step 4: After submission, the registrar will submit your documents and provide you with a copy of the same.
Revocation of Power of Attorney in India: –
In India, if the attorney is unable to perform a particular function, executes a particular document, or fails to appear before the court or any other authority, the principal may revoke the authority letter.
When can you revoke the power of attorney?
If the owner can revoke the power of attorney,
1) If the authority does anything contrary to the terms and clauses of the letter, the owner can then revoke the power of attorney after giving prior legal notice to revoke the letter of attorney.
2) The time of completion of the work or business for which the power of attorney is.
The issuance of the charter ends when the principal completes the self/business. Then it becomes unnecessary to have a letter of attorney and the owner can cancel the authorization letter.
When can you not return the Power of Attorney?
When the lawyer has certain rights and interests on the subject matter. For him, the owner cannot cancel the power of attorney. In this case, the attorney’s consent is mandatory for revocation.
If according to the authority letter partially performs its duty. Then he is not deprived of the right to do what he does.
Laws governing the power of attorney:
Relevant legislation with revocation of power of attorney
- Power of Attorney Act, 1882 (2)
- Indian Contract Act, 1872 (1)
How to revoke power of attorney?
You can cancel a charter by signing a revocation signature. Further, it is mandatory at the time of execution of his duty, the attorney is the guarantor by the principal. However, if the lawyer does not act legally or in good faith, or such work attracts criminal punishment. The owner is then not liable to secure the attorney.
How to revoke General Power of Attorney?
The General Power of Attorney can be revoked in the same manner that,
1) Prepare a notarized document for the revocation of the Charter, clearly stating that you want to revoke the authority of the said person.
2) Advertise in a local or national newspaper that the person is no longer authorized by you, to act on your behalf.
3) If your charter was registered with the Registrar or Sub-Registrar’s Office, then you need to register your revocation deed by the same office. It is also advisable to send a legal notice to the attorney, along with a copy of the revocation of the attorney, and to the attorney concerned and to the individuals concerned with whom the attorney is likely to enter into transactions.
4) In the case of a non-registered charter, you only need to legalize it to issue public notices in local or national newspapers.
Mandatory legal notice for issuing authority letter: –
1) Name, description, and place of residence of the person or persons
2) Name, description, and place of residence of the sender of the notice
3) Description of cause of action
4) Detailed account of the incident that raised the cause of action
5) Specific time to revoke the power of attorney
Who can revoke a charter if there are multiple owners or multiple agents authorized?
If multiple owners or power of attorney multiple agents are authorized then: –
1) If the Charter is executed jointly by multiple owners or multiple agents, the revocation cannot be done by only one owner or if an agent dies, other agents may not exercise their powers.
2) If the Charter is executed separately, the revocation can be done. If one of the four agents dies, and each of them executes the letter of authority separately, the other three can use their powers.
3) If a company/firm gives a letter of authority to a person: the dissolution of that company or firm is a way to automatically revoke the power of attorney.
When does the power of attorney system end?
- A special/limited letter of attorney i.e. a charter of rights which is for the performance of a specific purpose under certain prescribed terms and conditions, such as the sale of property; In such cases, it ends when the said objective is fulfilled. However, in cases of General Charter, it ends in one of the following cases:
- If the owner cancels the letter of Attorney by giving his intention and service notice to the attorney for the same.
- The death of the agent or principal or if the principal is not mentally stable makes the charter ineffective except in the case of a durable authorization, where the principal authorizes the agent to act even if inconsistent and hence of such authority Only after the death of the principal ends.
- There is illegality in your charter or the court has canceled your charter. For example, you have executed an authorization for the sale/purchase of the property, but have not registered it or submitted it to the Registrar’s Office.
- The agent fails to fulfill the purpose of the charter due to certain reasons or circumstances.
Is the execution of Power of Attorney in India valid in India?
Yes, as per section 14 of the Notary Act, 1952, which states that “reciprocal arrangement for recognition of notary acts done by foreign notaries”, makes notaries in other countries valid.
1) If you have an executed letter of authority abroad, as per Section 3 of the Diplomatic and Consular Officers Act, 1948, you have to get it certified by the Indian Embassy or Consulate in your country. Once it is verified by the Indian Embassy Officer, it can be executed in India, but within three months of receiving the letter of authority in India, you are required to seal it.
2) It is a government-issued certificate that verifies the document, and the process is governed by the Hague Convention, 1961. It has been accepted in 105 countries described in the Apostille Certified Convention. To get this certificate you have to follow the rules according to your country. For example, in India, you can go to e-Sadan, the online portal of the Ministry of External Affairs, and get your document verified.
Why does one need a Letter Of Attorney?
Providing an attorney to trust you is useful when you are unavailable or unable to act on your own and you need someone to act on your behalf. Whether you are a person serving away from home or retiring or experiencing dependent medical limitations, these are some of the common reasons for the grant of authority.
Can the latter of the attorney be revoked?
Yes. The court may revoke the letter of attorney if it is proved that the agent is abusing his position contrary to the principal’s interests. It then empowers a parent. Revocation helps reduce the risks of empowering someone that may force you to death or purchase, you cannot afford. When an agent works on your behalf, you will be responsible for paying the bills.
Does the power of attorney continue after the owner’s death?
No, the Letter of attorney becomes void after the death of the owner. However, family members can hand over a letter of attorney to the attorney if they wish.
What happens when the attorney disagrees with his chief?
Attorneys are in charge of deciding for their principal. But if a time comes when the principal disagrees with his attorney’s decision, the case is taken to court to come to a fair conclusion.
Which type of Letter of attorney comes with the highest risk and which type comes with the least risk?
A non-springing general durables charter is the largest and at-risk letter of attorney available because it comes into force immediately after signing and has virtually no limits. A special letter of attorney is the least risky because they limit the powers you give to your agent and they expire automatically after one year.
Is registration of authority mandatory?
Whether it is a special or general charter, it is not mandatory to be registered by law. However, when it comes to dealing with immovable properties or the person who lives abroad, it is necessary to obtain a registered letter of authority at the registrar or sub-registrar office which is within the jurisdiction to give the person his powers. Registration ensures that you do not face any trouble later.
Where can I find a good lawyer?
With Aapka Advocate you have the facility of finding many good lawyers who specialize in sending legal notices. All you have to do is select the one that matches your criteria. Just ask your opinion via mail or just call us on + 91-925-070-6625 to solve any and every kind of legal problems.