Requirements and Validity of a Special Power of Attorney for Signing Documents

In Philippine legal practice, a Special Power of Attorney (SPA) is a critical instrument that allows one person (the Principal) to authorize another (the Agent or Attorney-in-Fact) to perform specific acts on their behalf.

Unlike a General Power of Attorney, which grants broad administrative powers, an SPA is restricted to specific transactions where the law requires a "special power."


1. When is an SPA Legally Required?

Under Article 1878 of the Civil Code of the Philippines, an SPA is mandatory for the following acts:

  • To make payments that are not considered acts of administration.
  • To effect novations which put an end to obligations already in existence at the time the power was granted.
  • To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action, or to abandon a prescription already acquired.
  • To waive any obligation gratuitously.
  • To enter into any contract by which the ownership of an immovable (real estate) is transmitted or acquired.
  • To make gifts, except customary ones for charity or those made to employees.
  • To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration.
  • To lease any real property to another person for more than one year.
  • To bind the principal to render some service without compensation.
  • To bind the principal in a contract of partnership.
  • To obligate the principal as a guarantor or surety.
  • To create or convey real rights over immovable property.
  • To accept or repudiate an inheritance.
  • To ratify obligations contracted before the agency.
  • Any other act of strict dominion.

2. Essential Requirements for Validity

For an SPA to be valid and enforceable against third parties (like banks, the Register of Deeds, or courts), it must meet several criteria:

A. Capacity of the Parties

Both the Principal and the Agent must have the legal capacity to act. The Principal must be of legal age (18+) and of sound mind. If the Principal is a corporation, the SPA must be backed by a Secretary's Certificate or a Board Resolution.

B. Specificity of Power

The document must clearly describe the acts authorized. Philippine jurisprudence, particularly in cases involving land sales, emphasizes that the power to sell must be express. A general power to "manage property" does not include the power to sell or mortgage it.

C. Written Form

While an oral agency can exist, Article 1874 specifically states that when a sale of a piece of land or any interest therein is through an agent, the authority of the latter must be in writing; otherwise, the sale is void.

D. Notarization

To be considered a public document, the SPA must be notarized. A notarized SPA carries the presumption of regularity and is admissible in evidence without further proof of its authenticity. For transactions involving real estate, the Register of Deeds will strictly reject any SPA that is not notarized.


3. SPA Executed Abroad (Apostille/Authentication)

If the Principal is residing outside the Philippines, the SPA must undergo a specific process to be recognized locally:

  • Apostille Convention: If the country is a member of the Hague Apostille Convention, the SPA must be notarized by a local notary and then "Apostillized" by the foreign government's competent authority.
  • Consularization: If the country is not an Apostille member, the SPA must be "authenticated" or "legalized" at the Philippine Embassy or Consulate in that country.

4. Extinguishment of the SPA

An SPA does not remain valid indefinitely. Under Article 1919, it is extinguished by:

  1. Revocation by the Principal at any time (though notice should be given to third parties).
  2. Withdrawal of the Agent.
  3. Death, civil interdiction, insanity, or insolvency of the Principal or the Agent.
  4. Dissolution of the firm or corporation which entrusted or accepted the agency.
  5. Accomplishment of the object or purpose of the agency.
  6. Expiration of the period for which the agency was constituted.

Note on Death: Generally, the death of the Principal terminates the SPA immediately. Any contract signed by the Agent after the Principal's death is void, unless the Agent acted in good faith without knowledge of the death and the third party also acted in good faith (Article 1931).


5. Summary Table: SPA vs. GPA

Feature General Power of Attorney (GPA) Special Power of Attorney (SPA)
Scope Covers all business/admin of the principal. Limited to specific, enumerated acts.
Common Use General property management. Selling land, withdrawing from banks, litigation.
Legal Basis Acts of Administration. Acts of Strict Dominion/Ownership.
Requirement Often optional for simple tasks. Mandated by Art. 1878 for specific acts.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.