Buying property through a general power of attorney (POA)

Buying property through a general power of attorney (POA) can have several effects, including: 

  • Abuse of power

    The agent may act in their own interest instead of the principal's, which could include making unauthorized transactions or misusing funds.

  • Legal disputes

    Misunderstandings over the agent's authority can lead to legal disputes with third parties or between the principal and the agent.

  • Financial risk

    The agent could make financial decisions that negatively impact the principal's assets or credit, such as failing to make payments or incurring debts.

To mitigate these risks, you can: 

  • Choose a trustworthy agent
  • Have the agent report to a trustworthy third party, such as an accountant or lawyer
  • Check all the other parties the agent will interact with
  • Maintain regular communication with the agent to ensure transparency
  • Be aware of your rights, responsibilities, and potential legal implications

In Pakistan, a general power of attorney is known as a Mukhtaar-nama aam. It gives the representative the authority to buy and sell property, hire lawyers, and file appeals

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حَسْبِيَ اللَّهُ لاَ إِلَهَ إِلاَّ هُوَ عَلَيْهِ تَوَكَّلْتُ وَهُوَ رَبُّ الْعَرْشِ الْعَظِيمِ

“Allah is sufficient for me. There is none worthy of worship but Him. I have placed my trust in Him. He is the Lord of the Majestic throne.”