Power of Attorney for Rent Agreement
In this article, I will try to explain and give some information about the Power of Attorney for Rent/Leave and License Agreements.
Power of Attorney can be made for any purpose, like selling or buying a property, handling financial matters, assisting in court matters, representing some Government Offices, etc.
Mainly there are two types of Power of Attorney one is a General Power of Attorney and the second is a Specific Power of Attorney. Usually, in the General Power of Attorney most of the rights are assigned to the Power of Attorney Holder, e.g. Right to deal with property matters, financial matters, court matters, society matters, etc. That means generally all the rights which Power of Attorney Grantor is authorized to deal into. And, in Specific or Special Power of Attorney, only specific right is given, for example, right to sell a property or right to purchase a property or right to manage a rent agreement and tenants, etc.
Specific or Special Power of Attorney for Rent Agreement –
Registration is optional for this kind of Power of Attorney and citizens can get it notarized by an authorized Notary after attaching a required stamp duty. If the client is outside of India and wants to register the leave and license agreement in Maharashtra, India, in such cases, Power of Attorney can be executed and attested outside of India from the Indian Consulate, and the Power of Attorney Holder can register such agreement in Maharashtra, India.
I have observed that in the recent pandemic corona situation, most of the Indian consulates in different countries like the United States, Canada, Australia, etc. had provided attestation facilities through couriers. The process is, first the Power of Attorney Grantor should attest the Document by a local Notary, and then it should be mailed to the Indian Consulate for its attestation.
Once this process is done and the Power of Attorney Holder receives the original PoA in Maharashtra, India then the document should be Notarized after attaching the required Stamp Duty.
So, if it is not possible for a property owner to do the legal formalities for registration of Leave and License Agreement or Rent Agreement, then the property owner can appoint a Power of Attorney Holder to perform those legal formalities. Registration is not compulsory for such kind of Power of Attorney, power of attorney can be notarized only. Just make sure to attach a required stamp duty as per the State Government rules, for example in Maharashtra Rs. 500/- stamp paper is required for the power of attorney which is only made to register a leave and license or rent agreement online or offline.
In case the property owner is out of India, the Power of Attorney will need to be Attested in the Indian Consulate. After attestation, the original Power of Attorney should be notarized in Maharashtra, India with attaching a stamp duty as per the state government rules.
Power of Attorney can be given only for the purpose of signing and/or presenting the Leave and License Agreement and/or managing the rental property. It is a very convenient way for those who are unable to look after their properties given on a rental basis.
While preparing this kind of special POA, the following powers can be assigned to POA Holder-
- authority to sign/execute the Leave and License Agreement,
- authority to present the Leave and License Agreement in the concerned Registration Office,
- authority to submit tenant’s information in the Concerned Police Chowky,
- authority to enter, view, and inspect the Property,
- authority to revoke and/or cancel the Leave and License Agreement,
- authority to collect License Fees and Deposit from the Licensee/s,
- authority to represent and sign relevant documents in Society matters,
- authority to represent in any legal matters related to licensed premises, etc.