Yes, approval is presumed in the light of POA holder as principal is otherwise bound by all acts of POA holder. Principal in POA can quote price and can direct POA holder to take prior approval of principal so as to keep check on POA holder and also to avoid disposing of assets by POA holder in bad faith. Take assistance of a competent lawyer in drafting of air tight POA.
POA with approval provision
Dear Sirs Where a POW is granted by a principal (NRI) to an attorney (a relative) to represent principal in all matters related to the disposal of property (land and residential homes), can said principal include an approval right on price at which assets shall be disposed of? Whereby the provision (and evidence) of said approval shall be documented by a supplementary appendix in a template form set out in the original POA? Signed copy of appendix evidences the approval. To avoid attorney disposing of assets in bad faith? Thank you in advance.
Asked 2 years ago in Property Law
Religion: Hindu
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7 Answers
There is no legal infirmity to include the decision of POA to fix the rates for selling/purchase with a direction to the power agent to strictly adhere to the given quotes.
There is no necessity to attach an annexure to the power deed, you acn add a recital to this effect in the power deed itself.
Yes, the principal can very well authorise the power agent to:
1. Scout for prospective buyers;
2. Negotiate the price with such prospects; and
3. Conclude the deal with the best offer, ONLY if approved by the principal expressly by means of e-mail, sms or WhatsApp text.
These clauses can very well be incorporated in the PoA.
Yes he can specifically mention same in poa
It can be mentioned at price at which property should be disposed of
it can be documented by correspondence exchanged between the principal and agent
In general, the scope and extent of powers given under a Power of Attorney (POA) can be determined by the language and terms set forth in the document. It is possible for the principal (NRI) to include a provision in the POA that requires the attorney to obtain the principal's approval for the disposal of property and to document that approval.
If the principal wants to have control over the price at which the assets are disposed of, they can include a specific provision in the POA that requires the attorney to seek the principal's approval for the price or terms of the sale. This provision could outline the process for obtaining the approval, such as the submission of a supplementary appendix or any other required documentation. The principal can also specify how the approval will be documented, such as through a signed copy of the appendix.
- If there is clause in the POA , that the attorney will have no right to dispose the property without taking prior approval of the principal , then the attorney will have to comply the same.
- Further, the principal can also mention the price of the property as well , below which the attorney agent will have not right to sell the property.
