A power of attorney is an authority given by the principal to an agent to execute some acts and deeds on the behalf of principal. Depends on the power of attorney, the stamp duty will be vary.
The definition of the power of attorney by act is: “any instrument empowering a specified person to act for and in the name of the person executing it” A power of attorney is a document of agency where the principal appoints an agent to do and execute certain acts or deeds on his behalf. Any person who is competent to contract can execute a power of attorney in favor of another person.
There are two types of Power of Attorneys:
General Power of attorney: This is a document where one person appoints another person to do some acts in behalf of first. This can be manage, attend or carry out certain works. An example of the same will be; sale or purchase of the property, signing of documents, dealing with outsiders etc.
Special power of attorney: When the authority is given for a particular act pertaining to one transaction, it is called special power of attorney.
A power of attorney is subject to stamp duty and need to be attested.
The person who gives the power of attorney is called “Executants” and one who receives the power of attorney is called “Power of attorney holder”
Power of attorney need to be executed on stamp paper of appropriate value. Stamp duty of the power of attorney based on the market value of the property.
Power of attorney can be revocable or irrevocable. In case of revocable, the executants can cancel the power of attorney at any time. But, if it is irrevocable, it cannot be revoked. In case the deed of a power of attorney mentions that it is executed after having received full value of the property and it is irrevocable, it is called irrevocable power of attorney. It cannot be revoked until the action is completed.