Power of Attorney

A power of attorney refers to a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter. Its a legal instrument whereby one person gives another person the authority to act on his or her behalf as his legal representative, and to make binding legal and financial decisions on his/ her behalf. It is not necessary that a lawyer can only have Power of Attorney.

Examples of powers contained in PA

Some examples of legal powers contained in the Power of Attorney are the following:

In Real Estate and Property Transactions

• To execute all contracts, deeds, bonds, mortgages, notes, checks, drafts, money orders,
• To manage, compromise, settle, and adjust all matters pertaining to real estate.
• To lease, collect rents, grant, bargain, sell, or borrow and mortgage

In Contracts

• To enter into contacts,
• Perform any contract, agreement, writing, or thing
• To make, sign, execute, and deliver, acknowledge any contract, agreement,
• Sale and Purchase of Stocks and Securities
• To sell any and all shares of stocks, bonds, or other securities
• To make, execute, and deliver any assignment, or assignments, of any such shares of stock, bonds, or other securities.

Financial Transactions

• To add to or withdraw any amounts from any of my bank accounts, Certificates of Deposit, Money Market Accounts, etc.
• To make, execute, endorse, accept and deliver any and all cheques and drafts
• Execute or release such deeds of trust or other security agreements as may be necessary
• Deposit and withdraw funds, Acquire and redeem certificates of deposit, in banks, savings and loan

Types of Power of Attorney

There are two types of power of attorney; “general” and “special” (or limited).

• In General Power of Attorney, the principal empowers the agent with the right to carry out all legal acts on his behalf without restricting it to a particular transaction or act.
• In Special Power of Attorney, authority is restricted to act only on certain matters or only a particular kind of transaction or to carry out a specific legal transaction for the Principal.

Kindly note that sale of properties through general power of attorney (GPA) and sale agreements (SA) has been barred in India by an order of Supreme Court.