Power of attorney is a process by which a person gives their power of attorney to another person. The power of attorney is governed by the Power of Attorney Act of 1888. Usually, a power of attorney does not need to be registered. However, if the power of attorney relates to immovable property, it must be registered.
Some people don’t know the meaning of power of attorney. In simple terms, power of attorney means giving permission to another person to perform a certain act such as selling property, going to court on his behalf, negotiating with buyers, etc.
what is power of attorney
Power of Attorney) is a legal document that allows a person to designate another person or organization to manage their property (power of attorney of property), medical affairs and money, etc.
during their absence. According to this, a person who authorizes another person to act on his behalf is called principal or donor or beneficiary. The authorized person is called an agent or representative.
Depending on the terms, the power of attorney can have full or limited powers to make legal decisions related to real estate (power of attorney of property), medical matters and money, etc.
formal power of attorney
Depending on the assigned responsibilities, it is also known as general power of attorney (GPA) or limited power of attorney. It is only limited to a specific responsibility and time. The power of attorney allows the agent to make personal and business decisions.
For example, the donor can give a broker a power of attorney to sign the deed of sale when he leaves the city or country.
durable power of attorney
Lifetime power of attorney is permanent. Under this power of attorney, the agent has the authority to make decisions even if the grantor is incapable/incapable of making decisions.
In general, a durable power of attorney lasts until the transferor’s death or until the transferor revokes the power of attorney.
For example, the grantor may appoint an agent to manage its investment portfolio.
springing power of attorney
Springing power of attorney is used for a specific event, date or situation and when the grantor is incapacitated.
For example, if a soldier is incapacitated for work or is stationed abroad, he or she can appoint a proxy to handle financial matters.
medical power of attorney
Medical power of attorney falls under both the spring power of attorney and the permanent power of attorney. It is often used for healthcare decisions. It should be emphasized that unless the provider is fit and healthy in mind and body, the medical power of attorney will not be effective.
For example, the trustee may pay the grantor’s medical bills. However, he is not authorized to make the decision to turn off the life support system if necessary.
After all, what is a power of attorney, does it actually give ownership of immovable property
In many states of the country, you do not have to pay stamp duty on a power of attorney. This is why in many cases related to real estate trading, people get a power of attorney instead of a bill of sale to save money on stamp duty.
Buying property in this age of inflation is not a trivial matter and we all know that very well. A person spends all his hard earned money to buy a property. On the other hand, there is no shortage of people who earn money throughout their lives to build their dream home.
There is always a huge amount of money involved in real estate trading, so one should always be careful and take care of some important things while trading real estate. A small mistake or “greed” while buying a home can ruin your savings in an instant. after which you can do nothing
power of attorney Keep these things in mind when buying a home
Today here we are going to tell you some very important things related to real estate trading which you should always keep in mind. Actually, according to the rules, you have to pay stamp duty to the government when buying a house. Your property will only be registered after payment of stamp duty.
But the sad thing is that many people do not pay stamp duty because of the greed of few rupees. Because of this, even the registration of his property could not be done.
Surprisingly, many people who buy properties worth thousands of rupees get power of attorney or full payment agreement for real estate transactions to save on stamp duty.
Although this is not legally correct. A power of attorney or full payment agreement does not give you legal title to the property.
Today, here we will provide you with information about a power of attorney, what it is and what are the disadvantages of buying real estate through this power of attorney.
what is power of attorney
In many states of the country, you do not have to pay stamp duty on a power of attorney. This is why in many cases related to real estate trading, people get a power of attorney instead of a deed of sale to save money on stamp duty. But according to the rules of the government, this is not correct at all.
Actually, power of attorney is such a process, where a person gives the right to his property to another person. But you should keep in mind that only property rights are available in a power of attorney.
In addition, a power of attorney can be used to sell the property. But in the power of attorney, the property legally belongs to the person in whose name it is registered.
What are the disadvantages of a power of attorney
The power of attorney is such that after the death of the person from whom you are buying the house, that power of attorney automatically ends.
In such a situation, the children or close relatives of that person can claim that property. If they stake their claim on that property, you could be in trouble. You have a power of attorney for that property, which only gives you the rights to that property. The power of attorney never transfers ownership of an asset to any person.
That is why when you buy a property you have to register it by paying stamp duty. Not only this, after the registration is done, it is also very important that the registration of that property is rejected.