On this page we will see what the power of attorney is and what it is for. The main procedures that are commonly used and some sample models in word and PDF format are fully editable and can be customized and printed to your needs for free.
What is the power of attorney for?
What is a general power of attorney and why may you need it?? Let’s see the answer what? The power of attorney is used to give another person the opportunity to act on behalf of the person they are representing. Generally it is used to carry out procedures or administrative actions when the person cannot be in two places at the same time.
Through this type of correspondence, it is possible to delegate actions for almost all types of procedures, with the exception of those that require and require personal presence by law.
It is usually used by disabled people who cannot move or who need to travel on the same dates prescribed in the document. It is also for this reason that it is most common for the person who takes power to be a subordinate and close person: such as a family member, a secretary, a lawyer, and even a friend.
The most common actions related to power of attorney include:
- Buying and selling real estate
- Property Management
- Purchase of auto and vehicle proceedings.
- Marriage proceedings, divorces, separation agreements.
- Labels in the property registers.
- Processing of inheritances and successions.
- Representation in studies.
- Establishing companies
- Account opening and other banking procedures.
- Check and collection.
- Documentation received
- Gather official documents
Each of these procedures has different requirements for formalizing the power of attorney. In general, the higher the corresponding economic amount, the higher the requirements for the power of attorney to be recognized as valid or legal.
Depending on the scope of the required authorization, we distinguish between two types of authority:
- The general power of attorney: This includes administrative and legal acts that can negatively affect the person concerned. The person is acting on behalf of the grantor, and the power of attorney is in force or valid until the processing is completed or is voluntarily or involuntarily revoked.
- The special power of attorney: Refers to certain legal assets, the actions of which are expressly listed in the power of attorney itself.
Precautions Before Signing:
Obviously, granting a specific authority is not the same as a general authority. In the first case, the possible loss or damage is already defined and delimited in the content of the letter.
However, when it comes to a general power of attorney endowed with the fullest of real estate management powers, the power of attorney is unlimited and can cause the total ruin of the person granting the power of attorney.
In the worst case scenario, not only can he lose all of his assets, but he can also take care of possible debts and burdens that the other person has left behind.
The letter itself must always clearly state the circumstances and manner of action of the person responsible for obtaining this authority. In this way, misunderstandings are avoided and the responsibility under which the data subject acts is regulated.
This type of letter carries a number of dangers as it can empower someone else to manage our bank accounts or invest on our behalf, pay bills, cash a check, hire people … etc.
The person who receives approval will act on our behalf. Therefore, it is very important to establish the boundaries or limits of action of this person in a timely manner so that they do not exceed their functions and do not lead to problems later on.
The intervention of a lawyer is always recommended when the legal conditions in which the beneficiary is operating are worked out and clarified.
When a lawyer is authorized to represent us in a dispute, we must maintain good communication to avoid possible misunderstandings or problems later on.
Be careful if you give a person sufficient power to share an inheritance and then we will not agree on the part that suits us.
Be careful if we authorize someone to buy a house on our behalf and we find that the house was in debt. We cannot complain if we did not inform the person who should have requested the freight certificate.
If we send someone else to buy shoes, we must certainly inform them of the color chosen, the brand, the shoe size and the maximum price we would like to spend.
If there is no effective communication or if things are not clear from the start, we cannot complain about the bottom line of management.
Parts and elements of the power of attorney:
There are 5 important sections to show:
- 1 – Date and place: The letter begins with the city from which the document was written and the exact date with the day, month and year.
- 2 – The identification of the persons or companies who transfer and accept power. It is advisable to enclose with the letter the official documents from which the tax identification of both persons can be found, both of the approver and the acceptor. Original documents or copies can be used. The witnesses’ personal and tax identification data must also be attached.
- 3 – Detailed explanation, clear and precise listing of the limits of action up to the point at which this power is reached.
- 4 – Validity: Also the duration with the start and end date of this permit.
- 5 – Signatures, important for the validity of the document. That the signatures of the people involved appear and match those in the official documents.
In the regions or countries where witnesses need to be added, it is also important that their signatures appear along with the official documents that certify them.
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