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:
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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