On this page we are going to 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 format, and in pdf format, fully editable and free to adapt to your needs and to be able to print.
What is the Power of Attorney for?
What is a general power of attorney and why might you need? Let’s see the answer what? the power of attorney is used to grant another person the ability to act on behalf of the person whom they represent. 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, except those that by law require and require personal presence.
It is usually used by physically disabled people, who cannot move, or who must travel on the same dates required by the document. For this reason, the most common also is that the person accepting the power is a subordinate and close person: such as a family member, a secretary, a lawyer, and even a friend.
Among the most common actions related to the power of attorney are the following:
- Purchase and sale of real estate
- Property management
- Purchase of car and vehicle procedures.
- Marriage procedures, divorces, separation agreements.
- Inscriptions in the property registers.
- Processing of inheritances and successions.
- Representation in trials.
- Incorporation of companies
- Opening of accounts and other banking procedures.
- Check and debt collections.
- Receive documentation
- Collect official documents
Each of these procedures requires different requirements when formalizing the power of attorney. Generally, the higher the related economic amount, the greater requirements will be necessary for the power of attorney to be accepted as valid or legal.
We distinguish two types of powers depending on the scope of the required authorization:
- The general power of attorney: That involves administrative and legal acts that can negatively affect the person concerned. The person acts on behalf of the grantor, and the power of attorney is in force or valid until the processing has been completed or is revoked either voluntarily or involuntarily.
- The special power of attorney: Related to specific legal assets, whose actions are specifically detailed in the power of attorney itself.
Precautions before signing:
Obviously, it is not the same to grant a special power than a general power. In the first case, the possible loss or damage caused is already stipulated and delimited within the content of the letter.
But when it comes to a general power of attorney, loaded with the broadest powers of property administration, the power of attorney is unlimited, and can cause the complete ruin of the person granting the power.
In the worst case, he can not only lose all of his assets, but can also take care of possible debts and charges left by the other person.
The letter itself must always clearly specify the circumstances and the way of acting of the person in charge of receiving said power. In this way, misunderstandings are avoided and the responsibility under which the person concerned acts is regularized.
This type of letter carries a series of dangers since it can authorize another person to manage our bank accounts, or to invest on our behalf, to pay bills, to cash a check or to hire people … etc.
The person who receives the authorization will act on our behalf, so it is very important to set the limits or limits of action of said person well in advance, so that he does not exceed his functions and does not lead to later problems.
The intervention of a lawyer is always recommended when drafting and clarifying the legal terms in which the beneficiary moves.
When the power of attorney is issued to an attorney to represent us in a lawsuit, we must maintain good communication, to avoid possible misunderstandings or later problems.
Be careful when giving a person ample power to divide an inheritance, and then we do not agree on the part that has corresponded to us.
Beware if we empower someone to buy a home on our behalf, and then we discover that the home was in debt. We cannot complain if we have not informed the person who should have requested the cargo certificate.
If we send another person to buy shoes, surely, we must inform them of the chosen color, the brand, the shoe size, and the maximum price we want to spend.
If there is no effective communication, or things are not made clear from the beginning, then we cannot complain about the final result of the management.
Parts and elements of the power of attorney:
There are 5 most important sections that must appear are the following:
- 1 – Date and place: The letter begins with the city or town from where the document is written, as well as the exact date with day, month and year.
- 2 – The identification of the people or companies that transfer and accept power. It is convenient to accompany the letter with the official documents that demonstrate the tax identification of both people, both the grantor and the acceptor. Original documents or copies can be used. The personal and tax identification data of the witnesses must also be attached.
- 3 – Detailed explanation, clearly and concisely listing the limits of action up to where this power reaches.
- 4 – Validity: Likewise, the duration with the start and end date of said authorization.
- 5 – Signatures, important for the document to be valid. That the signatures of the people involved appear, and that they coincide with those that appear in the official documents.
In those regions or countries where it is necessary to add witnesses, it will also be important that their signatures appear along with the official documents that certify them.