Power of Attorney

In Pakistan, a power of attorney is a legal document that allows one person (the principal) to appoint another person or entity (the attorney-in-fact or agent) to act on their behalf in various matters. This can include financial transactions, property management, legal proceedings, and other specific tasks.

When a person cannot execute a particular document or transaction themselves, they can authorize someone else to do that on their behalf. They can also authorize someone to move the court or make an appearance in the civil court on their behalf. This is the basic idea behind the power of attorney. The laws generally applicable to power of attorney are the Powers of Attorney Act 1882 and the Contract Act 1872.

While the power of attorney can have a wide range of uses, this can be a particularly useful instrument for overseas Pakistanis who can take care of their property through someone (called an agent) who has been granted the power of attorney by the principal.

Kinds of POA:

There are Four kinds of power of attorneys

• General Power of attorney
• Special Power of attorney
• Enduring Power of attorney 
• Springing Power of attorney

General POA:

When the principal grants the agent the power to take care of all functions and transactions relating to a certain job, it will be a general power of attorney. For example, a principal may grant an agent a general power of attorney to take care of all transactions relating to a certain property; alternatively, they can also grant them the power of attorney to manage all of their property. This will allow the agent to sell, mortgage, lease, or dispose of the property in any manner, and it will be considered as if the principal had done such an act.

Special POA:

When the principal specifies the job that the agent has to perform, the agent’s power will not extend beyond that, and it will be a special power of attorney. For example, the principal may grant an agent the power to lease a certain property or to take possession of a certain property, and this would fall under the category of a special power of attorney. The special power of attorney comes to an end once the transaction for which it was granted has been performed.

Durable/Enduring POA:

If a principal becomes unsound of mind or, in any way, becomes so incapacitated as to be unable to make their own decisions, the power of attorney comes to an end. However, it can be specifically mentioned in the power of attorney that it will endure in such circumstances too. If that is so, it will be a durable/enduring power of attorney and will continue even if the principal becomes incapacitated.

Springing POA:

A durable power of attorney only comes into effect after certain conditions specified within the power of attorney are met. This is generally used to grant power of attorney in cases where the principal wants to grant the power of attorney only after they have become disabled or mentally incapacitated.

It should further be noted that power of attorney cannot be granted orally and should always be written and signed in the presence of witnesses. A general power of attorney should also be registered with the registrar under Section 17 of the Registration Act, of 1908. Generally, the registration of a special power of attorney is not required, however, any power of attorney that deals with property is required to be registered with the registrar in every case.

Termination of POA:

Power of attorney ends when:

The principal, or agent, dies.

The principal or the agent becomes disabled or mentally incapacitated. Unless it is the enduring power of attorney,.

The principal revokes it.

The agent relinquishes the power.

The task for which the power of attorney was granted has been completed.

It can end on a specific date if a termination date is specified in the power of attorney itself.

A Powerful Document

Power of attorney can be a powerful instrument, as it will help you take care of things even when you physically can’t be present. However, due care should be taken when granting someone the power of attorney, and it should be granted to close and trusted family and friends only. The agent is duty-bound to work in the interest of the principal, and they can’t transfer the property to themselves. However, depending on the powers granted in the power of attorney, it can be used in a variety of ways that may be detrimental to the principal. This is why it is generally advised to seek proper legal help before granting someone a power of attorney.

Mohammad Imran Rasheed

092 333 3690000

092 300 3690000

info@almadinaestate.com

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