Power of Attorney Drafting & Registration

What is a power of attorney?

A power of attorney (PoA) is a legal document by which one person – the principal – authorises another person – the attorney or agent – to act on their behalf. It is used when you cannot be present yourself: NRIs managing property in India, elderly parents who want a child to handle their bank work, or business owners who need someone to sign documents while they travel. A clearly drafted power of attorney lets the attorney act with confidence and protects you from misuse.

Types of power of attorney

A special power of attorney is usually safer, because the attorney can do only what is written.

What to include

• Full details of the principal and the attorney
• The exact powers given – sign documents, appear before the sub-registrar, operate a named bank account, file cases, receive money
• The property, account or matter concerned, described precisely
• Whether the attorney can appoint a substitute
• How long the power lasts, and any limits on amounts or actions
• Signatures of the principal and witnesses

Registration, stamp duty and notarisation

Stamp duty on a power of attorney is set by each state and depends on the powers given – it is usually higher for a power to sell or transfer immovable property. A PoA dealing with immovable property must be registered with the sub-registrar; for other purposes, notarisation is usually sufficient. Banks and some departments may ask you to use their own format as well.

Power of attorney for NRIs

If you live abroad, you can sign the power of attorney before the Indian embassy or consulate, or before a local notary with an apostille in countries that follow the Hague Convention. When the document reaches India, it must be stamped within three months, and registered if it concerns property. We draft the document in the format Indian registrars accept and guide your attorney through stamping and registration.

A power of attorney is not a sale

The Supreme Court has made clear that property cannot be sold simply by handing over a general power of attorney with an agreement. Ownership passes only through a registered sale deed, which the attorney can sign on the owner's behalf if the power of attorney allows it.

Revoking a power of attorney

A power of attorney ends automatically when the principal dies or becomes of unsound mind, or when its purpose is complete. You can revoke it at any time by a written revocation – registered if the original was registered – and by informing the attorney, banks and anyone else who relied on it. Until they are told, third parties may still deal with the attorney in good faith.

Related documents

To give property to family now, use a gift deed; to decide who inherits it later, make a will. If you are buying or selling through an attorney, start with a clear sale agreement and a property title verification.