• Clarifications for creating a Power of Attorney

I seek your guidance on creating a Power of Attorney (PoA) for my father. He is elderly, physically weak, and unable to handle financial transactions, legal matters, and property-related dealings. I want to ensure that I can assist him in managing these responsibilities efficiently and legally on his behalf. Below are the key points I would like clarification on:

1. Scope of the Power of Attorney
•	Type of PoA: Should I opt for a general power of attorney or a specific one?
•	Scope of Authority: Can the PoA cover: 
o	Financial transactions, including managing bank accounts, investments, and tax filings?
o	Legal matters, such as signing contracts, appearing in legal proceedings, and handling disputes?
o	Property-related dealings, such as buying, selling, renting, or leasing properties?
•	Can multiple authorities (like the above) be combined into a single PoA document, or do I need separate PoAs?

•	Registration: Is registering with a sub-registrar or another authority like the notary public is mandatory? What are the steps involved?

•	Validity: How long does the PoA remain valid? Should there be a specific end date or an event triggering its revocation?

Execution in Multiple Jurisdictions
•	If the PoA needs to be executed in different cities or states, does it require additional legalization or notarization?

I would appreciate your insights and advice on the above points to ensure the process is smooth and legally secure. If you have a template or checklist for drafting such a PoA, that would be incredibly helpful. 
Looking forward to your guidance.
Asked 5 days ago in Property Law
Religion: Hindu

8 answers received in 1 day.

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20 Answers

You can go for general POA and can do all the above work on his behalf. You need to register the same

Prashant Nayak
Advocate, Mumbai
32660 Answers
207 Consultations

General power of Attorney can be executed by your father 

 

it should be registered as it involves buying and selling of property 

 

it remains valid till it is revoked by your father or till he is alive 

 

it would be valid in different states 

Ajay Sethi
Advocate, Mumbai
97224 Answers
7850 Consultations

Creating a Power of Attorney (PoA) for your father is a thoughtful and practical step to help manage his affairs effectively. Below are insights and clarifications on the points you’ve raised:

1. Scope of the Power of Attorney

a. Type of PoA:


  • General Power of Attorney (GPA): Suitable if you need broad powers to handle multiple responsibilities, such as financial, legal, and property-related matters.

  • Specific Power of Attorney (SPA): Suitable for delegating authority for specific tasks, such as selling a particular property or handling a single transaction.

If your requirements cover multiple areas, a GPA would be ideal.

b. Scope of Authority:

  • Yes, a PoA can cover financial transactions, legal matters, and property-related dealings. Ensure the document explicitly mentions the powers you are delegating to avoid ambiguities.
  • All these authorities can be combined into a single PoA document, provided they are detailed and properly categorized under separate headings.

c. Registration:


  • Mandatory Registration: For property-related matters, the PoA must be registered with the sub-registrar under the Registration Act, 1908. For financial and legal matters, notarization by a notary public may suffice.

  • Steps for Registration:

    1. Draft the PoA on stamp paper (value depends on the state).
    2. Sign the PoA in the presence of two witnesses.
    3. Visit the sub-registrar’s office with the original document, witnesses, and required identification documents for all parties.
    4. Pay the applicable registration fees.

d. Validity:

  • A PoA can remain valid indefinitely unless:

    • A specific end date is mentioned.
    • It is revoked by the principal (your father).
    • The principal passes away or becomes incapacitated.

  • You can include a clause mentioning that the PoA will be valid until revoked in writing or upon your father’s demise.

2. Execution in Multiple Jurisdictions

  • If the PoA needs to be executed in multiple cities or states, ensure the following:


    • Notarization: The PoA must be notarized for it to be legally enforceable across jurisdictions.

    • Stamp Duty Compliance: If it involves property transactions, the PoA should be registered in the jurisdiction where the property is located, and applicable stamp duty must be paid.
    • For use in different states, having the document adjudicated (validated) in each state may be required for certain legal or financial matters.

Checklist for Drafting a PoA

Here’s a suggested template for the contents of the PoA:


  1. Title: "General/Specific Power of Attorney"

  2. Principal’s Details: Full name, address, and identification details of your father.

  3. Attorney-in-Fact’s Details: Your full name, address, and identification details.

  4. Scope of Powers: List detailed powers, categorized under:

    • Financial Transactions
    • Legal Matters
    • Property Management


  5. Validity Period: Mention a specific duration or keep it indefinite with a revocation clause.

  6. Signatures: Your father’s signature, your signature (optional), and signatures of two witnesses.

  7. Notarization or Registration Details: Mention that the document will be notarized or registered, as required.

Next Steps

  1. Draft the PoA with the required details. You can consult a lawyer to ensure legal accuracy.
  2. Get the document notarized or registered, depending on its use.
  3. If you need further assistance or a customized PoA template, consider scheduling a consultation.

This will help ensure that the PoA is legally valid and can be executed seamlessly across jurisdictions. Let me know if you would like help with drafting or reviewing the document.

Thanks & Regards
Adv. Aman Verma
Legal Corridor

Aman Verma
Advocate, Delhi
43 Answers

  1. For the purpose of financial transactions, bank and tax purpose GPA has to execution on 100 rupees nj and notarized.
  2. For legal matters a separate GPA is necessary.
  3. A GPA the purpose of transfer or acquisition of immovable property has to be registered at the  place where the  principal resides. If the  principal due to bodily infirmity is unable to attend the  office Sub-Registrar, his presence can be condoned.
  4. A general GPA can be executed for the  purpose of transfer of immovable properties but for acquisition of immovable property  a separate GPA has to executed and registered.
  5. For each type of transaction a separate GPA/POA is required.

Ravi Shinde
Advocate, Hyderabad
4263 Answers
42 Consultations

Dear Client, 

I strongly advise him to be given General Power of Attorney. Under this arrangementyour father can manage all his financial and legal affairs and property in one single document for the purpose of covering financial transaction like bank management, investments, taxes, legal matters like signing of contracts and settlement of disputes with properties such as buying selling or leasingIt must be registered in the Sub-Registrar's office in the case of property-related powers; notarization is enough for monetary and legal purposesIn this case, the drafting of the PoA, visiting the Sub-Registrar with identification documents and witnesses, paying the stamp duty, and registration fees are followed. The time or event-bound, or it remains indefinite unless formally revoked by your father. In case it is executed across cities or states, the registered PoA is valid across all states, but with added authenticity through notarization, and stamp duty would vary according to jurisdictions. A well-drafted and registered PoA ensures smooth and legally secure procedure by empowering you to be more effective in assisting your father.

Hope you find this answer beneficial for resolving the dispute. 

Anik Miu
Advocate, Bangalore
10285 Answers
121 Consultations

1. A single, general PoA empowering the power agent to carry out all the functions listed in your query will serve the purpose. There is no need for multiple PoA's.

2, The PoA needs to be registered with the Registrar within whose jurisdiction your father is living now. Registration of the PoA is compulsory. There is no need for getting the PoA attested by a Notary.

3. The PoA is valid until it is revoked by the principal or upon death of the principal. Otherwise, there is no such thing as a validity date.

4. No need for registering the PoA in various jurisdictions. Once it is registered at the place where the principal lives, it shall be valid throughout India.

 

Swaminathan Neelakantan
Advocate, Coimbatore
2936 Answers
20 Consultations

Creating a Power of Attorney (PoA) for managing your father’s affairs is a responsible step to ensure that his financial, legal, and property-related matters are handled efficiently and legally. Here are clarifications based on your key points:

  1. Scope of the Power of Attorney:


    • Type of PoA: Given the diverse needs of your father, you may consider opting for a General Power of Attorney (GPA). This type covers a broad range of activities and can be tailored to include multiple responsibilities. If you prefer to restrict the powers to specific transactions or situations, a Special Power of Attorney (SPA) would be more appropriate.

    • Scope of Authority: Yes, a PoA can cover all the mentioned areas:

      • Financial transactions such as managing bank accounts, investments, and handling tax filings.
      • Legal matters including signing contracts, appearing in legal proceedings, and resolving disputes.
      • Property-related dealings like buying, selling, renting, or leasing properties.


    • Combining Authorities: Multiple authorities can indeed be combined into a single PoA document. This makes managing various duties more streamlined rather than having separate PoAs for different purposes.

  2. Registration:


    • Necessity: Registration of a PoA is generally recommended, especially when it involves property transactions. For other matters, a notarized PoA might suffice. However, registering a PoA provides legal robustness and is mandatory in cases dealing with the transfer of immovable property.

    • Steps Involved: To register a PoA, you need to draft the document, get it signed by your father in the presence of two witnesses, and submit it to the local Sub-Registrar office along with the required fees and supporting documents.

  3. Validity:

    • A PoA remains valid until it is revoked by the principal (your father in this case) or until the principal passes away. You can set a specific end date if you foresee a change in circumstances or can include an event that would trigger its revocation, such as your father's recovery or change in his capacity.

  4. Execution in Multiple Jurisdictions:

    • If the PoA is likely to be used in different cities or states, it’s advisable to get it notarized and apostilled or attested if it needs to be recognized internationally. Within India, notarization is typically sufficient, but check local regulations as they can vary.

  5. Template or Checklist:

    • Unfortunately, I can't provide a direct template, but here’s a general checklist for drafting a PoA:

      • Identify the type of PoA (General or Specific).
      • Clearly define the scope of powers granted.
      • Include full names, addresses, and other identification details of both the principal (your father) and the attorney-in-fact (yourself).
      • Specify any limitations on the powers or a set duration for the PoA.
      • Date the document and provide a revocation clause.
      • Have the PoA signed by your father in the presence of witnesses, and get it notarized and/or registered as required.

Ensure the document is drafted clearly to prevent any misuse or misunderstanding of the powers granted. It's also wise to consult with a legal professional to ensure all legal formalities are correctly followed and the document meets all required standards.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
329 Answers

A general power of attorney (POA) can cover money maintenance, bank account, and property transactions: 

A GPA gives the agent broad powers to act on behalf of the principal in many legal and financial matters, including managing bank accounts, handling property transactions, and making business decisions.

A financial POA, also known as a general power of attorney or a power of attorney of property, gives the agent the power to manage the principal's finances and property.

The bank cannot provide direct loans to a power of attorney. In contrast, you can apply by power of attorney for a home loan if you are a homeowner.

General: Gives the agent broad authority to act on behalf of the principal in all matters

Limited: Gives the agent the power to act on behalf of the principal in specific matters or events

Durable: Remains in effect even if the principal becomes mentally incapacitated

Springing: Becomes active if a certain event or level of incapacitation occurs.

A registered power of attorney deed is valid across all the states.

 

T Kalaiselvan
Advocate, Vellore
87426 Answers
2348 Consultations

Since your father is executing POA in your favour 2 (1) would be applicable for sale of property 

 

if you want also to purchase property then 4 or 7 would be applicable 

Ajay Sethi
Advocate, Mumbai
97224 Answers
7850 Consultations

If you are going to be the power agent, option 2 is applicable to you. Please engage a competent lawyer to suitably draft it to serve your requirements and get it duly registered.

Swaminathan Neelakantan
Advocate, Coimbatore
2936 Answers
20 Consultations

Dear Client,

Based on your requirement to help your father with financial, legal, and property-related matters under a General Power of Attorney (PoA), the most appropriate option for stamp duty and registration would generally be Option 7: "Power of Attorney - when authorizing one person to act in more than one transaction or generally; or not more than ten persons to act jointly or severally in more than one transaction or generally." This falls in line with your requirement to take care of multiple responsibilities for your father. As the PoA will deal with immovable property, register it with the Sub-Registrar since registration is compulsory for all immovable property transactions. Use the SAMPADA 2.0 portal to calculate the correct stamp duty and registration fee applicable since these vary with respect to the nature of the document and the purpose for which the PoA is being executed. In order to be doubly sure of adhering to all the legal requirements of the state laws of Madhya Pradesh, approach a lawyer.

Hope you find this answer beneficial for resolving the dispute. 

Anik Miu
Advocate, Bangalore
10285 Answers
121 Consultations

Prashant Nayak
Advocate, Mumbai
32660 Answers
207 Consultations

The items what the registrar office mentioned for registration is very clear, you may select the item which suits to your requirement based on your present need.

If you are not able to identify the correct item you can consult an experienced lawyer in the local and take appropriate decision as suggested.

T Kalaiselvan
Advocate, Vellore
87426 Answers
2348 Consultations

Based on the details you've provided about the Power of Attorney (PoA) you are creating for your father, and considering that it involves handling immovable property transactions in Madhya Pradesh without any monetary consideration, the most suitable options from the SAMPADA 2.0 portal would be:


  • Option 2: "Power of Attorney - (i) when the agent is a member of the family when given without consideration, and authorizing the agent to sell, gift, exchange, or permanently alienate any immovable property situated in Madhya Pradesh." This option specifically caters to situations where the agent (you) is a family member and is not receiving any payment for handling the transactions. This option covers significant property-related actions such as selling, gifting, or exchanging property.

This category aligns with your situation as it accommodates the familial relationship and the scope of authority you need to manage your father's property affairs effectively. It is particularly relevant if the PoA includes powers to deal with property transactions, as you've indicated.

To proceed with this option, you would need to ensure that the PoA is correctly drafted to specify these powers and your relationship, and then follow the steps for registration as required under this category. Given that immovable property transactions are involved, registration of the PoA at the local Sub-Registrar's office is mandatory to confer legal validity to the actions you undertake on behalf of your father.

Always consider consulting with a legal expert to verify that all aspects of the PoA are properly addressed and compliant with the latest legal standards and procedural requirements in Madhya Pradesh. This ensures that the PoA serves its intended purpose without any legal hitches.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
329 Answers

Yes it means gratuitous and without monetising 

Prashant Nayak
Advocate, Mumbai
32660 Answers
207 Consultations

Without consideration means no payment made 

 

imply that the Power of Attorney is granted without any monetary or material exchange between the principal and the agent

Ajay Sethi
Advocate, Mumbai
97224 Answers
7850 Consultations

Given without any consideration simply means not for any monetary benefit.

Swaminathan Neelakantan
Advocate, Coimbatore
2936 Answers
20 Consultations

Without consideration means not having paid the power agent for the services sought for/rendered.

This should be confirmed that neither you paid any money nor he is doing them for any monetary benefits 

T Kalaiselvan
Advocate, Vellore
87426 Answers
2348 Consultations

To clarify your queries regarding the "given without consideration" clause for registering a Power of Attorney (PoA) under Madhya Pradesh's SAMPADA 2.0 portal, here's a detailed explanation:

Meaning of "Given Without Consideration" in this Context

  1. No Monetary Exchange Between Principal and Agent:

    • The term "given without consideration" typically means that the principal (your father) is granting the PoA to the agent (you) without receiving any monetary or material benefit in return.
    • It emphasizes that the PoA is being granted based on trust and the familial relationship, without any contractual obligation or payment involved.

  2. Nature of Transactions the Agent Handles:

    • This phrase does not extend to the transactions the agent carries out on behalf of the principal.
    • For example, if the PoA authorizes you to sell or transfer property, the "consideration" in this context pertains to the relationship between the principal and the agent, not the nature of the property transaction. The property dealings may still involve monetary exchanges with third parties.

Which Option Is Appropriate for Your Case?

Based on your description, if you are a family member and the PoA is intended to manage property-related transactions, Option 2 would apply, provided no monetary exchange between you and your father is involved.

  • If you are explicitly authorized to sell, gift, or permanently alienate immovable property located in Madhya Pradesh, Option 2 seems appropriate.
  • However, if the PoA involves broader authority (e.g., general financial transactions, and legal matters), Option 7 might be more suitable, as it covers general powers for multiple transactions.

Steps to Determine Applicability

  1. Confirm the Purpose and Scope of PoA:

    • If it solely involves property-related transactions where you act without monetary benefit to yourself, select Option 2.
    • For broader authority, consult the portal or legal counsel to confirm the suitability of Option 7.

  2. Verify Details with Local Authorities:

    • Visit or contact the sub-registrar's office or the helpdesk of the SAMPADA 2.0 portal for clarity on stamp duty and registration fee calculations.

Recommendations for Action

  • Review the exact wording and clauses of the PoA draft to ensure they align with the chosen option.
  • For immovable property transactions, register the PoA as mandated by the Registration Act, 1908.
  • Include specific clauses stating the familial relationship and the absence of any consideration if using Option 2.

If you require assistance with drafting or customizing the PoA document to fit these criteria, feel free to reach out.

Aman Verma
Advocate, Delhi
43 Answers

The phrase "when given without consideration" in the context of Power of Attorney (PoA) registration generally refers to the relationship and arrangement between the principal (your father) and the agent (you), rather than the nature of third-party transactions. Here's a clarification:

Meaning of "Given Without Consideration":

  1. Between Principal and Agent:
    It means that the PoA is granted by the principal (your father) to the agent (you) without any monetary or material exchange. The agent does not pay or provide any consideration to the principal for being granted the authority. This provision emphasizes the family relationship and trust inherent in the arrangement.

  2. Not About Third-Party Transactions:
    It does not imply that the transactions (e.g., sale, gift, or transfer) carried out by the agent with third parties must also be without consideration. For instance:

    • The agent may sell property for market value or gift it, as authorized by the PoA.
    • The key is that the PoA itself was issued without the principal expecting payment or profit from the agent.

Application to Your Case:

  • Since you are a family member and the PoA is being granted purely to assist your father without any payment or benefit expected by him from you, Option 2 ("when given without consideration") is the correct choice for registration.
  • Ensure the PoA specifies the familial relationship and scope of authority.

For further assistance, consider consulting a legal professional to ensure the PoA aligns with your requirements and meets registration formalities.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you.
Shubham Goyal

Shubham Goyal
Advocate, Delhi
329 Answers

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