What is General Power of Attorney?

A general power of attorney (PoA) lets someone else handle legal stuff for you, like signing contracts and managing business matters.

The General Power of Attorney holds a significant place among all legal documents. It gives authority to an individual to act on your behalf regarding legal, financial, or other matters. In this blog, we'll talk about the basics of General Power of Attorney, its importance, and how to obtain a general power of attorney.

What is General Power of Attorney?

A general power of attorney is a legal document that gives an individual authority to make decisions on behalf of another person in a wide range of financial and legal matters. These legal or financial matters include financial transactions, signing documents, managing real estate, and other legal decisions.

What are the critical components of General Power of Attorney?

1. Scope of Authority: Unlike limited or specific power of attorney, a general power of attorney provides broad authority to the agent, which means the particular agent can manage a wide range of legal and financial matters.
2. Revocability: A general power of attorney can be canceled or revoked by the principal at any time. Common reasons for revocation are the principal's recovery from illness, loss of confidence in the agent, or any other changes in circumstances.
3. Enduring: In some jurisdictions, GPA can be made enduring, which means it remains valid even if the principal loses the decision-making capacity due to injury or illness.

When should you use a General Power of Attorney?

1. Managing Business Affairs: Business owners often use a General Power of Attorney to appoint someone to handle their financial matters, sign contracts, or handle routine business transactions when they are unavailable.
2. Real Estate Transactions: A person who frequently travels from one place to another or cannot attend to property matters may appoint an agent using GPA to handle their real estate matters.
3. Financial Management: If a Principal is facing health challenges can grant General Power of Attorney to a family member or to an individual who can manage their financial or legal affairs.

How do you get General Power of Attorney in India?

1. Consult with a Lawyer: A qualified and experienced lawyer in India can guide you through specific requirements according to the situation.
2. Drafting a Power of Attorney: With the help of a lawyer, you can quickly draft a General Power of Attorney document that includes the specific powers you want to give to a particular agent.
3. Notarization: After the GPA document is drafted, it must be notarized according to the relevant state's Stamp Act. Both Principal and Agent should sign it in the notary public's presence.
4. Registration: Registration of General Power of Attorney will add an additional security to the document. The local Sub-Registrar Office can do this. You need to pay the stamp duty, which varies from state to state.
5. Obtain Certified Copies: After successful registration, you'll get certified copies of the General Power of Attorney from the Sub-Registrar's Office as proof of registration.

General Power of Attorney Format:

How can General Power of Attorney be canceled in India?

1. Draft a Revocation Deed: You need to prepare the revocation deed, which includes information like the original GPA, a clear statement of revocation, and the names of the parties involved in it.
2. Notarization: Once the document is prepared, the principal should sign it before the public notary.
3. Publish the Revocation: In some areas, the revocation notice is required to be published in the newspaper. You also need to notify the agent of which particular document was granted.
4. Registration: To register for that Revocation Deed, you must visit the local Sub-Registar Office after paying the applicable fees.
5. Update Records: After successful registration, notify and update the relevant institutions and authorities about the deed's revocation.
6. Retrieval of Original GPA: To avoid potential misuse, retrieve and cancel the original General Power of Attorney document.

Conclusion:

This beautiful legal document helps us handle unexpected situations more easily in our journey. By understanding its critical components, we'll benefit greatly from it.