Difference Between General and Special Power of Attorney

A General and Special Power of Attorney is are important legal documents that allow a person (the principal) to give authority to another person (the agent) to act on their behalf. These powers are often used for managing property, handling finances, or representing someone in legal matters. 

The main difference between a General and Special Power of Attorney lies in the scope of authority — a General Power gives broad rights, while a Special Power is limited to specific tasks. Understanding this difference between General and Special Power of Attorney helps ensure your legal rights and responsibilities are clearly protected.

Difference Between General and Special Power of Attorney

What is a Power of Attorney?

A Power of Attorney (PoA) is an enforceable contract that permits an assigned person to make decisions for the principal. Its use arises in real estate transactions, business dealings, banking transactions, and causes.

Some Advantages of Power of Attorney:

A trusted person may assist and manage your legal and financial affairs. If you are unavailable, it ensures that all of your obligations and transactions are completed, provides legal certainty and avoids disputes.

Types of Power of Attorney:

• General powers of attorney, or GPAs: GPAs are extensive and cover a wide range of duties.
• Special Power of Attorney (SPA): This type of power is limited to certain actions.

General Power of Attorney (GPA)

A General Power of Attorney gives an agent the ability to act on behalf of the principal quite broadly in a variety of legal or financial matters. Since the agent can have very broad authority, the agent can authorise handling bank accounts, property management, taxes, business transactions, etc. 

When to Use a General Power of Attorney?

• When a principal is abroad, the principal needs to have someone handle their affairs.
• To allow one commercial agent to be the agent for multiple pieces of property or investments.  
• For business owners who would like to name a representative to sign contracts or conduct business with the agency.

Pros and Cons of General Power of Attorney

General Power of Attorney Format

Key Components of a General Power of Attorney:

• Principal (Name, Address, ID proof)
• Agent (Name, Address, ID proof)
• Scope of authority (What powers are given)
• Duration (Validity, if appropriate)
• Signatures (Principal, Agent, two witnesses)
• Notarization and Registration (If appropriate)

A well-drafted General Power of Attorney can assure that all legal considerations are met.

Read more about: What is the General Power of Attorney, and how does it help manage property, finances, and legal matters effectively?

Special Power of Attorney (SPA)

A Special Power of Attorney grants authority to the agent for a specific task or purpose. The SPA automatically expires after the task is finished.

When to Use a Special Power of Attorney?

• Selling or purchasing a specific property.
• Handling legal disputes on behalf of the principal.
• Representing the principal in court cases or government offices.

Pros and Cons of Special Power of Attorney

Legal Requirements and Registration Process

How to Register a Power of Attorney in India:

• Prepare the PoA documents.
• In front of two witnesses, who must be present when you sign the PoA.
• Notarization by a registered notary public.
• Payment of Stamp duty (amount varies from state to state).
• Register the PoA at the Sub-Registrar’s Office (for PoAs dealing with properties). 

For proper guidance, consulting the best lawyer in Delhi can help ensure all legal steps are followed correctly.

Risks and Limitations of Power of Attorney

• Potential for misuse if the agent is not trustworthy.
• The PoA is void on the death or incapacity of the principal.
• It must be legally revoked in case of disputes.

How to Revoke a Power of Attorney?

• Issue a Revocation Deed, communicating this to the agent.
• Issue a public notice declaring the revocation of the Power of Attorney.
• Notify the point of law and banks that the Power of Attorney has been revoked.

Conclusion

An effective legal document that permits someone to act on your behalf when necessary is a power of attorney. The key difference between a General and Special Power of Attorney is the level of authority—GPA gives broad powers, while SPA is limited to specific tasks. Choosing the right one depends on your situation.

To avoid misuse or legal trouble, the document must be properly drafted and legally valid. Consulting a skilled Maintenance Lawyer in Delhi ensures the Power of Attorney is correctly prepared, registered, and can be safely revoked if needed.