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WHAT IS POWER OF ATTORNEY?
As per section 48 of the Land Registration Act, a power of attorney is an instrument in which a person appoints another to act for him in any matters including disposition of land.
The person giving authority is referred to as the principal or the donor and the one being appointed as the donee. A power of attorney must be duly executed, attested, verified and registered.
A person of unsound mind or one who lacks capacity cannot donate the said power but there are exceptions such as:
- Section 114(3) of the Registration of Land Act exempts a guardian or someone appointed to represent a minor, a person of unsound mind or a disabled person from obtaining a power of attorney to represent them.
- Under the Mental Treatment Act, one may apply to manage the property of a person of unsound mind without the need of obtaining a power of attorney.
Types of Powers of Attorney
There are different types of powers of attorney including:
- General power of attorney. Here the donee can do any duty.
- Limited power of attorney. Here the authority donated is for a specific duty.
- Irrevocable power of attorney. This is where due consideration has been given. Such a power of attorney operates beyond the life of the donee/grantor.
- Financial power of attorney. This relates to financial matters of the donor.
- Medical power of attorney.
- Durable power of attorney. This type of a power of attorney ends on death of the donor.
- Non-durable power of attorney. This type of authority ends on incapacitation of the donor.
- Springing power of attorney. This type of power or authority is for a certain event only and ceases upon performance of the obligation therein.
As per section 116 (1) of the Land Registration Act, a power of attorney must be registered and a copy filed subject to consent and certification of the Registrar. It must also be stamped and paid for stamp duty. Failure to satisfy the above requirements renders it null and void as was held in Mayfair Holdings Limited v Ahmed (1990) Klr 667, whereby a power of attorney prepared in the United Kingdom in accordance with the United Kingdom Power of Attorney Act 1971 was unenforceable for lack of certification as prescribed under section 110(4) as read with section 116 of the Registration of Land Act.