A power of attorney is granted by you to another person to perform acts on your behalf. There are several reasons why you would use a Power of Attorney. It could be due to the fact that you are abroad and you want somebody to look after your domestic interests, or you are unwell or due to lack of time you want a certain person to represent you in important matters.
The general rule of thumb is that we should designate people we trust as our attorney. An attorney enjoys unlimited powers that have been given to him by the Principal and they can be misused.
The “principal” is liable for the acts of the “attorney” done in his capacity as an “attorney”. An attorney is also duty bound to not overstep the powers that have been so vested to him under a power of attorney instrument. Thus, only a trustworthy person should be entrusted with a power of attorney.
When To Use Power Of Attorney To Recover Rent?
A power of attorney to recover rent is typically used when one has been authorised under the power of attorney instrument to recover rents from any immovable property like flats, shops, etc.
Let us assume a situation where “AB” owns a property in Kailash Colony, Delhi which has been rented out to “CD”. Due to personal reasons, “AB” shifts to Dubai for a period of 5 years. “AB” appoints “XY” and authorises him under a power of attorney to act on his behalf in relation to the said property which also includes collecting of rent on time, address the issues of tenants, if any. “CD” has not paid the rent for the past 2 months. Acting under a power of attorney granted by “AB”, “XY” sends a notice to “CD” to demand the rent that is due. Despite repeated notices, “CD” did not pay the rent as well as the arrears. In such a case, “XY” can initiate proceedings to recover the rent from the tenants in the appropriate forum which would include meeting the lawyers, paying them, filing a suit, giving evidence, talk of settlement, if any, as he is authorised under a power of attorney to do all such acts that are necessary in the recovery of rent.
In the above scenario, “XY” under the power of attorney can do all such acts necessary to recover the rent from the tenants including but not limited to sending notices, talking to lawyers to seek legal remedies, filing the suit at the appropriate forums.
Is A Power of Attorney For Court Cases Required?
Not necessary in this case. The Power of Attorney to recover rent can be made into an all inclusive document so as to use in a situation wherein if the rent is not recovered on time, legal remedies can be sought to recover the same through courts, mediation, etc. In such a case, a power of attorney for court cases may seem similar to a power of attorney to recover rent. However, though both the documents seem similar on the onset, a subtle difference lies in the fact that a power of attorney for court cases is made for an already existing case in the court of law but a power of attorney to recover rent envisages a situation where if the rent is not paid timely what all legal remedies does the attorney have. It is not limited to a filing a case in the court of law.
A power of attorney to recover rents should be a carefully worded document so as to include all the powers that may be so necessary in aiding the “attorney” to recover such rents.
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