A power of attorney is based on the trust that the principal has in the individual receiving it. It is revocable at any time, meaning that the agent can only act while the power is valid and the actions they undertake are within the scope of the authority granted to them.
Content of a Power of Attorney
If you wish to grant a power of attorney, you must specify the powers you wish to delegate, i.e., the purpose for which the power is needed, and provide the identification details of the agent(s).
If there are multiple agents, you must indicate whether they should act jointly (i.e., all agents must intervene at the same time, as could be the case with all children) or independently (any agent can act on their own for the acts included in the power).
Types of Powers of Attorney
General Power of Attorney
This is the broadest type of power of attorney, often referred to as a "power of ruin". In this type, the principal grants the agent extensive powers to act on their behalf in any matter, except for those acts that are **personal** in nature. With this power, for example, the agent could sell the principal's house, take out a loan in their name, withdraw money from their bank account, and perform other actions.
Special Power of Attorney
In this type of power, the principal grants the agent authority to carry out one or more specific actions, but the agent is only allowed to perform those particular acts and nothing else. It is essential to clearly define the act(s) that are to be delegated to avoid the power being insufficient.
For example, if you are inheriting a property from a relative in Benidorm and want to sell it but are unable to travel, you might grant a power of attorney to a relative to sign on your behalf. The power must include both the authority to sign the acceptance of the inheritance and to carry out the sale. If you only grant the power to sell, the agent will not be able to sign the inheritance document to transfer ownership of the property into your name, and without that signature, they cannot proceed with the sale.
Power of Attorney for Litigation
This power authorizes lawyers and legal representatives to act on behalf of the principal in any legal procedure, regardless of the type of matter. Although the specific case does not need to be detailed in the power, the names of the lawyers and legal representatives who will act on behalf of the principal must be included. In general, this power follows a standard model, but sometimes special powers must be granted, which should be expressly stated in the power.
Power of Attorney for Corporate Entities
Just like individuals, corporate entities and other legal persons can also grant powers of attorney, either general or special. If it is a general power of attorney, it must be registered with the Commercial Registry to be effective against third parties.
Revocation of a Power of Attorney
If you wish to revoke a previously granted power of attorney, you must provide the details of the power you wish to cancel, so that we can communicate the revocation to the notary who holds the power in their records and, if necessary, to the agent as well.
Considerations for Powers of Attorney
Survival Clause: The power of attorney document may include a clause that ensures the **survival** of the power in case the principal suffers a loss of capacity, such as in conditions like Alzheimer’s, senile dementia, or similar conditions. In this case, the notary must communicate it to the principal’s Civil Registry (according to Article 1732 of the Civil Code).
Self-Contracting Clause: If the principal and the agent are parties to the same transaction (for example, when someone is selling a property but cannot attend the signing and grants the buyer a power of attorney to sign on their behalf), a specific clause must be included to authorize the agent to act in this dual capacity (as both seller and buyer). This clause is intended to prevent the agent from acting in their own interest, safeguarding against the risk by expressly authorizing the agent to use the power in such circumstances.
Required Documentation
DNI (National Identity Document) of the principal.
Details of the agent(s): Name, marital status, address, and DNI.
If the power of attorney is granted by a corporate entity, the following documents must be presented to the notary:
Original deeds showing the constitution of the company and those proving the appointment of the administrator or representative of the company, along with its CIF.