A Power of Attorney (PoA) is a legal document through which one person, known as the Principal (or Donor), authorises another person, known as the Agent (or Attorney), to act on their behalf for specified purposes.
The authority granted may include managing property, handling financial transactions, signing documents, representing the principal before authorities, or carrying out other authorised activities, depending on the terms of the document and applicable law.
Who is involved in a Power of Attorney?
- Principal (Donor): the person who grants the authority.
- Agent (Attorney or Donee): the person authorised to act on behalf of the principal.
Why is a Power of Attorney used?
A Power of Attorney allows a person to authorise someone they trust to handle specified matters when they are unavailable or prefer to delegate certain responsibilities.
Important to know: a Power of Attorney does not automatically transfer ownership of property to the agent. The agent's authority is limited by the powers granted in the document and the applicable law. The legal requirements for execution, stamping and registration depend on the nature of the PoA and the transaction involved.