What is Power of Attorney
A power of attorney can be described as a written agreement between two parties i.e. principal and agent. Principal is the person who is the owner of property and agent is one who exercises all rights of principal on his behalf. The agreement of power of attorney is written proof in which principal is agreed to give all his rights related to mentioned properties in agreement to his agent. This agreement comes into existence because of lack of time, busy schedule of principal which makes him unable to fulfill all the formalities related to properties.
Now let us discuss the main clauses of power of attorney. Following are points which explain the extent of power in hands of agent:-
It the responsibility of the agent to care for the property. The agent should reconstruct and repairs the property whenever is required. There is no need to concern principal about that decision. Reasonable repairs should be given to property after different time intervals. The agent has also the right to sell the property on behalf of principal. He has the responsibility to find buyer from market and to collect payment from him. The consideration for sale should also hand over to principal in appropriate time. However this type of action requires concern of principal. The agent has to fulfill all the legal formalities related to property. Payment of various taxes at proper time, presentation of affidavit whenever required etc, all these duties lies on agent. The agent also needs to deal with all the disputes related to property. He has to present himself in court whenever required on behalf of principal. All the legal formalities related to such dispute are to be fulfilled by the agent. The agent can also file a suit against third party when it is required on behalf of principal. He can hire advocate also for this purpose without concerning principal.
As it is explained that the various actions can be taken by agent on behalf of principal with or without concerning him but it should be noted that whatever is done by agent he cannot be held liable for his acts for third parties. The principle is liable for whatever the acts that are done by the agent. However the agent can ask for reimbursement from agent in case of any loss occurred due to the acts of agent.