Introduction
The term Power of Attorney (POA) usually come into play, when any individual had a chaotic or busy life and he/she unable to take out time to manage their property for buying or selling and even plan their financial affairs. In such situation the individual had the right under the law to hand over their property and assets to his family member or friends to look-after. This is the time when a Power of Attorney deed is to be created. But it is also important that such another person should be trustworthy and reliable to have power. Here, the key emphasis is on the use of Power of Attorney for buying of property in India, how to buy property from a deceased person and discuss on the legal forms of irrevocable Power of Attorney.
Power of Attorney according to India law
According to the Power of Attorney Act, 1882[1] defines it as “power of attorney includes any instrument empowering a specified person to act for and in the name of the person executing it”. Whereas, The Indian Stamp Act, 1899 defines the power of Attorney as “any instrument empowering any specified person to act for and in the name of the person executing it”.
However, the basic principle which governed the concept of Power of Attorney deed is the law of agency as provided under the Indian Contract Act 1872.
Power of Attorney is a legal document/instrument that is used to gives an individual known as agent/donee authority by the person known as principal/donor to do certain act such as buying the property and managing legal decisions on his behalf. The power granted to agent can be broad while dealing with legal decision or these powers can be limited, it depends on the will of the principal specified in the document.
A power of attorney could be of various type- General and Special and Durable.
1. A general Power of Attorney- Under this type of POA it gives the agent a larger scope of power to buy, sell or rent the property on behalf of principal. The general POA benefits the buyer and seller to avoids the stamp duty rate, capital gains, taxes, etc imposed by government on any transaction related to property.
2. A special Power of Attorney- Under this type of POA, the power given to the agent is restrictive and narrower in scope. It specifies exactly what deeds or transactions were allowed to performed on behalf of the principal. This POA comes to end when such special task has been completed or the principal dies.
3. A durable Power of Attorney- it is also known as Irrevocable Power of Attorney in which deed document cannot be changed in future. A durable POA deed usually performed for the elderly or anyone expecting illness in future. This type of POA is irrevocable in nature. This POA document created by the principal to authorize the agent with all its power which will remain with him even after the principal passes away or suffer from any mental illness to made him incompetent.
[1] Section-1A of The Power of Attorney Act, 1882
