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Introduction To POA In Mumbai
If you are looking for someone to transfer your decision-making authority to Mumbai then you will need to have a Power of Attorney that will transfer all your responsibilities to the other person. To obtain a power of attorney in Mumbai you will require assistance and guidance from a lawyer. You will walk through the minute details of the procedure for obtaining it, the necessary documents, its revocation, and so on. Connect with us now!
Nuances of Power of Attorney in Mumbai
A power of attorney (also known as POA) is a document that is used for transferring the obligations or decision-making powers onto the shoulders of another so that the person authorizing can sit and relax and does not have to worry about making any decisions. In a transaction, more than one Agent/ Attorney can be appointed (this has been discussed in detail).
Parties involved while granting a POA in Mumbai
There are basically two parties involved in a POA. These are:
- Principal: A Principal is said to be a person who is transferring his/her liabilities/power of decision making to another.
- Agent/Attorney: An Agent/Attorney is that person who is being entrusted with the obligations/powers to act on behalf of the Prinicipal in his absence.
Therefore, these are the two parties involved in a POA no matter how many POAs have been granted by a Principal. There are always two parties to a POA.
Perks of POA in Mumbai
There are various advantages involved in signing a POA. These are as:
- A POA helps in maintaining the finances as it will help in wasting it.
- A POA cannot be transferred and it cannot expire at any time. Hence, making the unlawful use by the Agent becomes redundant.
- Smoothly transferring the liabilities of the Principal.
Thus, we can say that with the help of a POA, everything can be achieved smoothly and efficiently.
What are the classes of a POA in Mumbai?
There are 6 classes in which the POA in Mumbai is diversified. This classification has been done in order to allow the room Principal to choose their own form of classification so as to reduce any hardship a Principal has to go through after choosing the wrong form of POA.
- Durable POA: A durable POA is a form of POA which lasts longer than the Principal. This does not mean that it lasts even after the death of the Principal but in fact, it lasts even when the Principal becomes incapacitated due to any reasons to make any decisions.
- Non-Durable POA: It is that form of POA which loses its importance and also becomes redundant as soon as the Principal becomes incapacitated.
- General POA: As the name of this POA suggests it is a POA that gives the Agent authority to act on behalf of the Principal on a wide range of matters.
- Particular POA: This is the opposite of the General POA which gives power to the Agent only for a particular reason and as soon as the reason/transaction completes the POA becomes redundant.
- Financial POA: This is the POA that has been granted to the Agent to make decisions regarding financial matters of the Principal.
- Healthcare POA: As the name of the POA incorporates it is a POA that has been granted by the Principal to the Agent for taking the decisions of the Principal regarding their health matters.
Thus, these are the 6 types of the POA that have been granted by a Principal for fulfilling their different obligations.
Documents required to make a POA in Mumbai
There are some necessary documents that are required by both parties to a POA for registering their POA in Mumbai. These are as:
- Draft of the POA on a piece of white-paper
- Identity Proof of both parties
- Address Proof of both the parties
- Photographs of both parties
- Tax receipt and Electricity bill (If the POA is for property)
- Hague Convention and Apostille:
- International Recognition: If the execution of the POA is to be done outside India then the parties to the POA are required to adhere to the rules of Hague Convention and also an apostille is required.
- Apostille: It makes the process of authentication easier, less time consuming because the countries that have rectified the Hague Convention accept it.
Hence, these are the essential documents that are required if a person wants to incorporate and execute a POA in Mumbai and outside India.
The procedure to get a POA in Mumbai
- Preparing the Draft: The first step in the process of obtaining a POA in Mumbai is to prepare the draft of the POA with the help of a lawyer in Mumbai so that you don’t miss the important responsibilities of the Agent.
- Stamp Duty Payment: Alongside the drafting of the POA it is imperative that the necessary Stamp Duty is to be paid upon the POA.
- Notarization: The next step in the process of obtaining a POA is the notarization of the POA in front of the public notary.
- Attestation: The process of registering is completed as soon as the POA is submitted to the registrar by getting it attested with two witnesses in Mumbai.
- Taking Away Home the POA: The last step in the procedure of obtaining a POA is to collect the registered POA from the offices of the sub-registrar.
These are the procedures to register a POA in Mumbai. It is always advised to get your POA registered in POA.
Grounds on which a POA can be canceled
Apart from the fact that the business, or the transaction for which the Agent has been appointed is over. There are various circumstances under which a POA can be canceled by either of the parties. These are as:
- Completion of the transaction for which POA was created
- When the Agent voluntarily abandons all the assigned powers
- The Principal becomes insolvent or bankrupt
- Death of any party
- By Mutual Consent
- When any party wants to quit.
Hence, these are the circumstances where any party can back out from a POA. It is not necessary to register the cancellation of the POA in Mumbai but it is always advisable to also register the revocation deed of the POA to avoid any misunderstandings or any unlawful use of the POA.
How to register the Cancellation Deed of the POA in Mumbai?
- Drafting the Revocation: Just as in the case of registration the first step in the process of cancellation is to draft the cancellation deed. It shall include the details of the cancellation and the date, etc.
- Execution: The next step after drafting the revocation deed is to get the deed executed in front of two witnesses as it strengthens the validation of the revocation.
- Serving Notice: After getting the deed executed it is necessary that the notice should be served upon the other party regarding the cancellation of the POA and it should also be accompanied by the receipt of the notice.
- Registration: This is the main stage of the revocation as getting the stamp of the sub-registrar connotes that the procedure of cancellation of the POA has been done.
- Collecting Original POA: The important step that arrives at the end is to make sure that the original POA from the sub-registrar’s office is collected so as to avoid any misuse.
This is how a revocation deed can be obtained in Mumbai.
How to register an overseas POA in Mumbai
At times the Principal lives outside India and they may want to get their authorities delegated in India. There comes the NRI POA into question. The steps for registering an NRI POA in Mumbai are very simple and similar to Indian with some extra layer of authenticity.
- Drafting the POA by the Principal
- Getting it attested by either the Consulate or the Indian Embassay in the state where he/she lives.
- Then after signing each page of the POA by the Principal, the Principal is required to send the POA to the registered address of the Agent in Mumbai.
- Agent gets the POA registered in Mumbai as any normal is registered in Mumbai.
This is how an NRI may get their POA registered in Mumbai. If you are still confused with the process, get your legal guidance from us.
How much Stamp Duty is paid for POA in Mumbai?
- When a POA is required for more than 2 documents for single transaction- INR 100
- Presidency Small Cause Courts Act, 1882 represented by POA- INR 100
- Athroriring two or more Agents for one transaction- INR 100
- Movable Property POA- INR 500
- Immovable Property POA:
- 5% Property Value if inside cantonment area/municipal corporation
- 4% Property Value if inside a rural region
- 3% Property Value if within Gram Panchayat
Nexus between Property Transactions and POA in Mumbai
- Real Estate Transactions: With the help of POA an Agent is empowered to act on behalf of the Principal as it will enable them to initiate any sale, purchase, or manage the property in Mumbai. Mainly, the POA is used in the translations related to immovable property as a POA gives a wide array of powers to them.
- Registering the Property: After buying or selling the property the next step in the process is to get the property registered with the sub-registrar in Mumbai. Hence, the Agent’s role again comes into play as he/she can file for the registration process as they are already empowered to act on behalf of the Principal.
What are the responsibilities entrusted upon the Agent as an Attorney-in-Fact?
An Attorney- In- Fact is a person who has been entrusted with the powers to act on behalf of another. There are various responsibilities that have been granted to an Agent for working as an Attorney-in- Fact.
- Legal representation: The main responsibility that an Agent enjoys is that they get the powers to legally represent the Principal in Courts, registering any documents in front of the sub-registrar, signing any documents, deeds, etc.
- Execution: As we have discussed in the above section an Agent is empowered to sign off any execution deeds on behalf of the Principal.
- Fiduciary Relationship: The type of relationship between an Agent and Principle is that of fiduciary where the Agent is required to work in such a manner as to keep the interests of the Principle paramount. If the Agent breaches their fiduciary relationship with the Principle then they will be liable to face consequences of such breach which may result in bringing a legal or civil action against the Agent.
Special cases vis-a-vis POA in Mumbai
There are some special cases wih the POA in Mumbai that have to be kept in mind while dealing with different POAs. These are as:
- Medical Conditions and POA: It is the POA that has been recognised by law so that any prompt medical decisions can be taken by the Agent for the Principal without wasting any second thoughts. This in turn grants the Agent to make timely health choices.
- General POA and Property: Where a General POA in Mumbai has been granted for the property transactions the duties of the Agent cannot be limited to any one particular work otherwise it covers everything relating to the property thereby making the management of the property easier, simpler and quicker.
- NRI and POA: As we have also discussed earlier the NRI has to delegate its powers in Mumbai to get its work done therefore making a POA for that purpose will help in getting the work. Getting it attested by the Consulate will also add another level of authorization to the process of making an NRI POA.
- Passport and POA: An Agent represents the POA in front of the passport authority thereby making the passport for the Principle easier and quicker.
Therefore, these are the special circumstances where a POA is used for various transactions.
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