- by: ICONS blog
- August 14, 2024
- Howto-guides
Power of Attorney in Pakistan: (All You Need to Know)
This is a complete guide to Power of Attorney (POA) in Pakistan for 2024.
So if you want to transfer property through POA, you’ll enjoy the actionable tips in this new guide.
In this post, you will discover:
- What is a POA?
- Selling Property through POA
- Who can apply
- How to apply
- How much does it cost you?
- Legal Terms used POA
- Types of Power of Attorney
- General POA
- Special POA
- Legal POA
- FAQs
You will love this ultimate post.
Are you ready?
Let’s get started.
What is Power of Attorney?
A power of attorney (aka Mukhtar Nama) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or other legal matters.
Sources: Wikipedia
See Also: Here are the ICONS HowTo guides like How to become a tax filer in Pakistan, hassle-free and fast.
Selling Property Through POA
The Power of Attorney (aka Mukhtar Nama) for property gives legal authority to someone to sell a property. This includes selling, renting, or handling legal matters on behalf of the owner.
Who can apply
Every Pakistani citizen who is a major, adult and according to law is competent to enter into a contract whether resides in Pakistan or outside Pakistan (Overseas Pakistani means living abroad) may authorize any other person through power of attorney to sell property on their behalf.
Also, a company or a trust may nominate/appoint an attorney to sell their property.
However, in the case of a company or trust, they resolve this matter in the Board of Directors meeting.
Read also: A step-by-step guide on the Property Transfer procedure in Pakistan that has all you need to know. It may be a gift transfer or a transfer to legal heirs (Inheritance).
How to Apply
The question is how an overseas Pakistani gets ready power of attorney.
Overseas Pakistanis, can have 2-options are:
In-person
You apply a power of attorney by accompanying two witnesses to a consulate or an embassy.
Nadra Digital POA
The GOP makes it easier for overseas Pakistanis to grant a POA for property matters online. This digital POA is acceptable in Pakistani Housing Projects/Housing Societies or courts. You can apply through the NADRA online portal. To apply, register yourself on their official website.
The grantor must visit the Pakistani embassy for attestation.
Requirements for Digital POA
- NICOP (National Identity Card for Overseas Pakistanis) of the grantor
- Valid CNIC (Computerized National Identity Card)
- Copies of the grantor’s passport
- Email address
- Postal address
- The grantor’s bio-metrics
- Bio-metrics of two witnesses
- Scanned thumb impressions of the grantor and witnesses
If you’re in Pakistan, how do you apply/get it?
You can prepare it by consulting any advocate or visiting any stamp vendor.
Next, visit the Sub-Registrar Revenue office to register this POA, accompanied by the person you appoint as your attorney and two witnesses.
How much does it cost you?
The registration fee for a Power of Attorney depends on certain factors:
- There is no fee if the agent is a blood relative of the grantor.
- If not, the fee is 1% of the property’s value.
- Additionally, a 2% tax applies for the registration fee.
Legal Terms
Here are some legal terms related to the power of attorney that you should know:
Principal/Donor/Grantor
The person authorizing the other to act out is the principal, grantor, or donor (of the power).
In simple terms, someone who grants limited or broad legal authority to another person to make decisions or act on his behalf.
Agent/Attorney-in-Fact
A person who has the power to act out for another person (the principal) according to a specific power of attorney.
Put simply, the one authorized to act out is the agent, attorney, or in some jurisdictions, the attorney-in-fact.
As stated above, an agent or Attorney-in-fact possesses limited or broad legal authority to make decisions regarding the principal’s possessions, finances and other legal matters.
Types of POA in Pakistan
POA has three main types. Each type has specific features and limitations. The POA for property focuses only on legal matters related to property dealings.
- General POA (Mukhtar Nama)
- Special POA (Mukhtar Nama Khas)
- Legal POA (Vakalat Nama)
General Power of Attorney (GPA)
A General Power of Attorney (aka Mukhtar Nama Aam) gives full authority to the agent on behalf of the principal. This allows the agent to handle any legal matters or tasks for the principal in their absence.
The principal can set specific terms and conditions for the General Power of Attorney, especially for property matters. A principal can set a duration Mukhtar Nama Aam for its validity.
Special POA
A Special Power of Attorney (aka Mukhtar Nama Khas) gives limited authority to the agent. Unlike general legal authority, this special POA focuses on one specified action.
Legal POA
Legal Power of Attorney (aka Wakalat Nama) allows the grantor to appoint a lawyer. So a lawyer represents them in a specific case. It is a common type of Power of Attorney.
With that said, a POA pertains to any immovable property, sale, or mortgage. You must register it under section 17 of the Registration Act of 1908.
Read Also: Discover the Best Places to Live. Explore the ICONS Area Guides to find your perfect community. Want to know the current steel rates and make informed decisions? Click here for the most up-to-date Current Steel Prices in Pakistan
Property Registration through POA
To register a Power of Attorney in Pakistan, you’ll need:
- A statement from the grantor on stamp paper worth 500 to 5,000 PKR
- Two witnesses with copies of their CNICs
- A copy of the property registry
Pro-tip: There is no registration fee if the agent is a blood relative of the grantor.
Required Documents
Below are the required documents for a Power of Attorney for property in Pakistan:
- Original application form for the Power of Attorney
- Attested application form by a notary public or judge
- Original CNICs of both the grantor and the agent
- Two passport-size photos of each individual
- Paid processing fee slip
Cancellation of POA
To cancel the POA, the principal can apply to revoke the POA at any time, General or Special.
Moreover, if an Attorney (aka principal) dies, the POA cancels automatically.
A principal can apply to the Registrar concerned to cancel the POA.
In Fact: Pakistan’s government appoints notaries to the public to witness the attestation and verification of important legal documents to prevent fraud.
POA Act 1882
Here is the Power of Attorney Act 1882 as under:
“The donee [Executant] of a power-of-attorney may, if they think fit, execute or do any assurance, instrument or thing in and with his name and signature, and his seal, where sealing is required, by the authority of the donor of the power; and every assurance, instrument, and thing so executed and done, shall be as effectual in law as if it had been executed or done by the donee of the power in the name, and with the signature and seal, of the donor thereof.”
Conclusion
In a nutshell, this guide has got you to answer the two main questions:
- How can an overseas Pakistani sell his property through power of attorney in Pakistan while living abroad?
- How does a Pakistani sell his property through POA in Pakistan being in Pakistan?
- PAF Fazaia Housing Scheme Islamabad (All You Need to Know 2024)
- G-16 Islamabad Area Guide: (All About You Need To Know)
- D-17 Margalla View Housing Scheme Islamabad: (Area Guide)
- TopCity-1 Islamabad: (A Modern and Fast-Growing Housing Scheme)
- A complete guide to Taj Residencia: (All you need to know)
- Kashmir Model Town Rawalpindi: (All You Need to Know)