What comprises a power of attorney?

Hers is how the document varies in each state

The Power of Attorney (POA) is a document through which a right is granted by the principal in favour of his/her agent to carry out specific actions.

Earlier, the POA was always signed only by the principal but today, many States in India insist that the power agent also signs in the POA.

In case if no fixed term is mentioned and it is valid until it is revoked by the principal or till the lifetime of the principal.

Fatures of a POA in certain States:

Tamil Nadu

Since November 2010 — the document is duly registered under Book I records and hence the details of transactions executed after the above said period also appear in the encumbrance certificate.

No other State in India has this unique feature.

Andhra Pradesh

It is the first State to have introduced an online search facility for the General Power of Attorney (GPA). The details relating to the transactions can be verified online. This feature is now vailable in Telangana as well.

Madhya Pradesh

The document is valid only for a period of one year.

Precautions to be observed in a POA

1. Ensure that it is duly registered and the stamp duty prescribed by the State has been paid

2. Signatures and photographs of the principal and power agent must be affixed.

3. Check whether the principal has a valid title to the property and that his/her name is reflected as owner in government revenue records.

4. Verify whether a sale clause is mentioned in the POA

5. For availing loans based on a POA, check whether the power agent has the authority to sign loan documents and can create an equitable mortgage in favour of banks/financial institutions on behalf of the principal.

6. Ensure that as on the date of execution of any document based on the POA, the POA is in force and the principal is alive.

7. In case a POA is granted by a builder (private or public limited company) to their employee, ensure that a certified copy of supporting board resolution authorising the power agent is produced. In case the builder is a partnership firm, check whether all the partners have authorised in writing any specific partner or their employee to act as power agent.

8. If the POA is being executed abroad, ensure that it is either notarised or signed before Indian Consulate officials and then duly adjudicated within 120 days from the date of execution of the said POA.

9. Always check the availability of the original duly registered GPA.

10. You must also check whether the description of the property (schedule of property) is in order.

The writer is a Chennai-based advocate and author of ‘Property Registration, Land Records and Building Approval Procedures Followed in Various States in India’