FAQ – Power of Attorney – Various types including Leave and License Agreement and Registered Rent Agreement.
Q1. What is the difference between a General Power of Attorney and a Special Power of Attorney?
Ans: Special Power of Attorney is for a Specific Task in hand pertaining to either Property, Business, Bank Operation, etc, Eg. “Rights to only execute the Leave and License Agreement of a Property”. However, General Power of Attorney is for various different functions pertaining to Property, Business, Bank Operations, etc. Eg, “Rights to execute the Leave and License Agreement, Collection of Licensing fees, Taking care of Maintenance Expenses, Paying the Property Tax on behalf of the Owner, Execute the sale deed, etc.
Its a misconception to construe the word “General” as to include each and every right by the Donee/Power of Attorney holder (person who is receiving the power) to act on behalf of the Donor/Owner (the person who is giving the right). So, its only the right pertaining to the Category on which the Power of Attorney is given like Property, Business, Banking Operations, Medical related, etc.
Q2. Which is better “a General Power of Attorney” or “a Special Power of Attorney”?
Ans: It depends upon a person’s need and preference. Where the Principal wants to specifically give only a particular type of right to the POA holder and restrict unrequired additional rights and duties, then the Owner may go for the Special Power of Attorney. However, when the Owner wants to confer an array of rights for the ease of operations and decision making capacities of the POA holder, then the Principal may go for the General Power of Attorney.
For e.g. Special Power of Attorney for Leave and License Agreement in Pune and Mumbai is only for the execution of Registered Rent Agreement or Leave and License Agreement. However, General Power of Attorney of Property is for a list of rights pertaining to a list of action that can be taken by the POA holder.
Q3. How to make a Power of Attorney for Leave and License Agreement or Registered Rent Agreement?
Ans: Consult a Professional Lawyer or contact us:
Q4. How much is the cost of making a Power of Attorney for Leave and License Agreement or Registered Rent Agreement in Pune and Mumbai?
Ans: There is no static fees for making the Power of Attorney. It varies from situation to situation and places to places. However, the following are the general breakups of the cost for making the POA:
- Stamp Duty cost.
- Drafting cost.
- Notarisation fees (if the POA is Notarised).
- Registration fees (if the POA is Registered).
- Professional fees by the Professional.
Q5. For Leave and License Agreement executed through POA, the POA should be Notarised or Registered?
Ans: The offline process of executing Leave and License Agreement by visiting the Property Sub Registration office doesn’t accept Notarised Power of Attorney. However, all the other process of making Leave and License Agreement or Registered Rent Agreement (like Online Registered Rent Agreement) may accept the Notarised Power of Attorney. However,
Registered Power of Attorneys (POA) are always accepted for making Leave and License Agreement for both Online and Offline.
However, please read the article below for authenticity of Power of Attorney (POA) before making the Power of Attorney (POA) for executing the Leave and License Agreement (Registered Rent Agreement)
Q6. Should the POA holder or the Principal (Owner) be in the same city where the property is located for making the Power of Attorney?
Ans: Apart from the other reasons, one of the primary purposes of making this POA is the unavailability of the Principal (Owner) within the city to give the biometrics for the Registered Rent Agreement. So, Yes, the POA holder is expected to be in the same city where the property is located. The Principal (Owner) can be in any part of the world.
Q7. When is the Power of Attorney for Leave and License Agreement expiring?
Ans: Unless there is an expiry period mentioned in the Power of Attorney, its a perpetual agreement which can be cancelled with Notification by either parties or execution of a Power of Attorney cancellation deed.
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