Definition
Power of Attorney
A power of attorney (POA) is a legal document by which one person authorises another to act on their behalf in financial, property or other matters.
A POA can be general (broad powers) or special/limited (for a specific task, like selling one property or operating a bank account), and it ends on the principal's death. It is widely used by NRIs and others who cannot be physically present to manage property, banking or registration in India. A POA for immovable property transactions usually needs to be registered and properly stamped to be effective.
Because a POA gives real authority that can be misused, it should be drafted carefully, limited to what is necessary, and given only to someone trusted. Note that, following court rulings, a 'sale through general power of attorney' does not by itself transfer property ownership — a registered sale deed is still required.
Related terms
- Property RegistrationProperty registration is the legal recording of a property transaction with the government sub-registrar, making the transfer of ownership official and legally enforceable.
- Will (Testament)A will is a legal document in which a person states how their assets should be distributed after death and who should carry out those wishes.
- Joint OwnershipJoint ownership is when two or more people together hold legal title to a property or asset, sharing rights and, depending on the structure, the manner of succession.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.