Have you ever given a Power of attorney to someone you know? And later because of some reason you don’t want to extend the granting of power to the Attorney, or in situations where the Solicitor is not ready to continue with the power granted by you, in this case, what should you do to cancel power of attorney?
A Power of Attorney deed is always registered and declared legal through proper stamp duty and registration process. Therefore, as long as the deed remains in the hands of the Attorney, he is legally allowed to enjoy the powers granted in the deed. And the principal cannot revoke it orally. cancel power of attorney is also called as Revocation of Power of Attorney in the legal language.
If the NRI (principal) thinks that the legal representative is misusing the powers granted to him/her or is unable to discharge the duties assigned to him/her, the option to cancel the Power of attorney is always available. Revocation is also useful if the NRI is in a position to take care of his/her assets himself.
Here’s when an NRI can cancel power of attorney:
The POA stands canceled if the principal dies (unless there’s a clause stating otherwise), is declared insolvent or becomes insane.
A POA can be revoked based on a mutual agreement between the principal and the legal representative.
A POA is revoked when the particular transaction for which it was executed is completed.
Additionally, a POA may be revocable or irrevocable. A power of attorney is revocable if the principal holds the right to cancel the power at any time. Once the principal cancels the power, the agent can no longer act on the principal’s behalf. However, a power of attorney can be made irrevocable if the document involves a provision that specifically declares that the principal gives up the right of revocation or otherwise indicates that the power is irrevocable. As a practical concern, an irrevocable power of attorney is rarely used and is typically limited to a specific purpose.
Here’s the process to cancel power of attorney, in case of a dispute:
Draft a Power of Attorney Revocation deed with the help of a qualified and experienced lawyer.
If the Power of Attorney had been notarized, the NRI would need to get the Revocation deed notarized as well.
Send a copy to the legal representative. Ideally, the NRI should do this by registered post so that there is proof that he/she has got it.
Send a transcript copy of the revocation deed to all the banks and institutions where the legal representative has conducted transactions for the NRI.
Also, send a copy to the deed registry office where the POA was originally issued.
The POA can be revoked by the NRI even if he/she is not physically present in India. He/she could issue a legal notice to the Sub-Registrar in India through post or through a lawyer stating the reasons for revocation.
If the interests of a larger number of people are affected, it helps to publish a notice in any well-known newspaper. A notice of the revocation should also be posted on the property, where it is visible to the general public.
It is important to remember that for properties where the owner only possessed the right of possession, and not of ownership, the sale would be considered illegal. The proper transfer of title and ownership cannot take place if the sale is done through a Power of Attorney, and not by means of a sale deed.