Power of Attorney (POA) is widely used for property management, banking, and representation. However, misuse of POA has also led to significant legal disputes. Understanding its scope and risks is essential before executing one.
What Is Power of Attorney?
A Power of Attorney is a legal document authorizing one person to act on behalf of another. The person granting authority is the principal, and the recipient is the attorney or agent.
Types of Power of Attorney
Common types include:
- General Power of Attorney (GPA) – broad authority
- Special Power of Attorney (SPA) – specific tasks only
- Durable Power of Attorney – remains valid during incapacity
Each serves different purposes.
Common Uses of POA
POA is used for:
- Property transactions
- Bank operations
- Legal representation
- Managing affairs for NRIs
It offers convenience but requires trust.
Legal Risks Associated with POA
Risks include:
- Unauthorized property sale
- Financial misuse
- Difficulty in revocation
- Legal disputes after death
Many property frauds involve misused POAs.
When Should You Avoid Giving POA?
Avoid POA when:
- There is no urgent necessity
- Large assets are involved
- Agent’s reliability is doubtful
Courts scrutinize POA-based transactions closely.
Registration and Revocation
POAs dealing with immovable property must be registered. Revocation should be done legally and communicated publicly.
Online Legal Advice on POA
Online legal consultation helps individuals choose the right type of POA and draft it safely.
Conclusion
Power of Attorney is a useful but sensitive legal tool. Proper drafting, limited authority, and legal advice prevent misuse.