Power of Attorney

January 11, 2019

A “Power of Attorney” (POA) is a legal instrument whereby one person gives another person the authority to be his/her representative and to make binding legal and financial decisions on his/her behalf. Technically, it is defined extensively as “an authority whereby one is set in the stead or place of another to act for him.” Detailed and systematic advice is always required for entering into such agreements and is vital to protect the rights. We know that NRIs have the right to buy commercial or residential property in India. There is no limit to the property they can buy. However they can’t buy agricultural land or farmhouses or even plantations – neither can they accept be gifted these. But they can acquire the latter in inheritance. There are various aspects that need to be comprehended and adhered to, as far as property issues are concerned. It is imperative therefore that they have full knowledge and assistance on this issue and understand how to remain protected from any harassment. However, overseas citizens don’t always find it easy to travel back and forth to sort out such issues hence the importance of the Power of Attorney in India. Remember the following – An individual need not be a lawyer to be granted the right to act on somebody else’s behalf. Three aspects need to be very clear in the minds of people here: the purpose of creating the document should be clearly stated the rights that are being vested in the agent need to be specified The method in which it would finally be brought to an end should be clear so that no ambiguity is there on this. It is a universally accepted fact that all documents relating to a POA must be interpreted strictly with due assistance by law-It is assumed that the POA grants only those rights as are specified in the document. This can grant considerable access to the third party to take any action on your behalf. Before you sign your name to contracts, you should give careful consideration to the person to whom you choose to grant those rights, and whether any time limits are to be imposed This involves the drafting papers which assign to another person the authority to be your representative. It is better to frame this kind of a document under proper lawyer advice. As a general precaution, remember to give a Restrictive Power of Attorney, wherein the powers of sale are not given. It is always better to give one that is Title specific. Each case would require judicial interpretation based on the facts and circumstances of that particular case. Before you sign, you should take help from appropriate lawyers and consider who you choose and also whether any time limit needs to be imposed on the power granted. The lack of properly drafted and executed documents can lead to a lot of complications in case an individual gets incapacitated due to severe illness or injury rendering him unable to travel, unable to make decisions or manage financial and medical affairs. Due to ignorance of the law, people fail to make […]

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