What is Power of Attorney:
Power of Attorney is a legal term that defines the transition of power from one individual to another. This Power of Attorney gives legal authority to someone to take legal actions on behalf of the power giver. For example, to take any decision regarding the property, any contract, a property related dispute, buying, selling, leasing or managing the property etc. Here the power giver is The Principal and the receiver is the Attorney.
There are several types of Power of Attorneys in Bangladesh:
General Power of Attorney: This power of Attorney grants broad and comprehensive powers to the Attorney on behalf of the Principal. Attorney can perform a wide range of activities including managing properties, conducting business transactions, handling financial affairs and making legal decision etc. General Power of Attorney is commonly used for real estate dealings, business transactions and other complex financial matters.
Special Power of Attorney: A Special Power of Attorney grants specific and limited powers to the Attorney-in-fact only certain actions or transactions on behalf of the Principal. For example- collecting rent for certain property, selling a particular property, representing the Principal in specific legal matter.
Irrevocable Power of Attorney: An Irrevocable Power of Attorney in Bangladesh is a type of Power of Attorney that cannot be revoked or canceled by the Principal once it has been granted, except under any specific circumstances defined by law. This is typically used in situations where the Principal wants to ensure that the Attorney has permanent and binding authority to act on their behalf.
A Power of Attorney is given to a real estate company against any monetary consideration which will be treated as an Irrevocable Power of Attorney. An Irrevocable Power of Attorney is also used for executing an agreement for the mortgage or sale of any immovable property against any loan or for the development of the land. However Irrevocable Power of Attorney should be registered under the Registration Act to be legally enforceable.
Required documents for executing Power of Attorney:
- Photocopy of NID card or valid passport of Bangladesh of the parties.
- Copies of photographs (passport size).
- Attestation by putting signature or thumb impression.
- Personal information of the Principal and Attorney (Name, Parents name, DOB, Address etc.).
- Government non judicial form with stamps.
Before Preparing a Power of Attorney Deed:
Decide whether you need a General Power of Attorney, Special Power of Attorney, or an Irrevocable Power of Attorney based on your requirements. If you are not an expert, please consult with a legal expert.
Effectiveness, Authentication & Limitation of Power of Attorney:
After signing a Power of Attorney it becomes effective immediately unless it is described a future effective date in the documents.
And before execution, every document should be authenticated by Notary public or any court, judge, magistrate, Bangladesh council. If the Power of Attorney is to be used internationally, further attestation may be required from Ministry of foreign Affairs in Bangladesh. For use in a foreign country, the Power of Attorney might also need to be attested by the embassy or consulate of the country where it will be used. Certain types of Power of Attorney, especially those dealing with immovable property, must be registered with the Sub-Registrar’s Office to be legally effective. The Principal must visit the office with the Power of Attorney document, along with the agent and witnesses, if required. And The Deed executed in Bangladesh should be presented for registration within 3 months from the date of execution.
The Power of Attorneys has some limitation on the execution of trust instrument, will, gift and adoption power.
It is recommended that you consult with a legal expert before executing the power of attorney, as it involves significant legal implications and consequences.
Compiled by-
- ABU SALEH SAMI
Legal Associate
© Advocacy Legal Bangladesh