Power of Attorney
Full form: POA
Personal FinanceA Power of Attorney is a legal document authorising another person (attorney) to act on your behalf for financial or legal matters. Widely used for: property transactions when owner is abroad, managing investments for incapacitated family members, and NRI property management.
In detail
Types:nSpecific POA: for a specific transaction (selling one property)nGeneral POA: broad powers for multiple transactionsnDurable POA: remains valid even if the grantor becomes mentally incapacitatednnNRI POA for property: commonly used by NRIs to let a trusted family member buy/sell Indian property on their behalf. Must be notarised in home country and apostilled.nnRisks: broad POA in wrong hands can be misused. Limit scope to specific transactions.
Real-life example
Sunita (NRI in USA) wants to sell her Chennai apartment. She executes a specific POA for her brother to complete the sale transaction only. Notarised in USA, apostilled, and then registered in India. Her brother signs all documents on her behalf without her needing to return to India.