The general power of attorney and the special power of attorney are notarial documents that allow delegating powers to another person. Both are signed before a notary. The main difference lies in the scope granted. Many people need them when they travel, live in another city or simply cannot attend a procedure.
An incorrect choice generates complications. A power that is too broad exposes to risks. One that is too narrow forces repeating the process. This article details the characteristics of each, their risks and how to decide according to the case.
What is a general power of attorney
A general power of attorney is a document that grants broad powers to the attorney-in-fact. This person can act on behalf of the principal in a variety of matters without each action being specified. The text uses general terms such as "administer assets" or "carry out banking operations".
The Civil Code regulates this figure. Articles 1709 and subsequent ones establish the rules of the mandate. The general power of attorney allows paying bills, collecting rents, signing supply contracts or representing before the Tax Agency. It is used when flexibility is required.
There are variants. The general power of attorney for the administration of assets is the most frequent among individuals. The general power of attorney for lawsuits is used in judicial proceedings. Companies grant general powers of attorney to their executives so they can manage daily operations without consulting each step.
The duration is normally indefinite. The document does not include an expiration date. It only ends by express revocation, death of the principal or death of the attorney-in-fact. This characteristic offers convenience but requires full trust in the designated person.
In practice, an executive who relocates abroad for several years grants this type of power to a family member. The family member can then manage the current accounts and taxes without the need for additional signatures.
What is a special power of attorney
A special power of attorney is limited to one or several specific acts. The document describes with precision what the attorney-in-fact can do. It includes specific data such as the address of a property, the account number or the name of the contract.
This power is exhausted once the act for which it was granted is carried out. The attorney-in-fact cannot go beyond what is written. If the text mentions only the sale of a car, it does not serve to sell a house.
It is used in sales when the owner cannot attend the signing. It is also common for specific banking procedures or to represent in a specific owners' meeting. The notary drafts the text with the exact details provided by the client.
Companies resort to the special power of attorney when an employee must sign a particular contract. The document indicates the name of the client, the amount and the conditions. In this way the scope of the representation is controlled exactly.
The special power of attorney reduces exposure. The principal maintains control because the attorney-in-fact only has authority for what is described. This is useful when the relationship of trust is lesser.
Key differences between general power of attorney and special power of attorney
The scope marks the main difference. The general power of attorney covers multiple procedures broadly. The special power of attorney focuses on a specific act and details its conditions.
The duration also distinguishes both. The general power of attorney usually remains in force until its revocation. The special power of attorney usually ends when the objective is fulfilled or on the date indicated.
The risk of abuse is greater in the general power of attorney. The attorney-in-fact has more room for action. In the special power of attorney the margin is minimal because everything is limited in writing.
The drafting varies. The general power of attorney uses standard formulas and broad language. The special power of attorney requires more time in drafting because names, addresses and specific references are included.
The cost at the notary is similar. A simple general power of attorney costs between 35 and 55 euros. A special power of attorney of medium complexity moves in the same range. Prices rise if the Hague Apostille is requested to use the document abroad.
The revocation follows the same procedure in both cases. A deed of revocation is granted before a notary. In the case of the general power of attorney it is advisable to notify banks and registries so that the document ceases to have effect.
Risks and limitations of each figure
The general power of attorney entails the risk that the attorney-in-fact carries out undesired acts. They can sell an asset or contract loans if the text is sufficiently broad. That is why it is only recommended when there is an absolute relationship of trust.
Some acts do not admit delegation by power of attorney. No one can grant a will through an attorney-in-fact. Marriage, divorce or the recognition of children require personal presence. These limitations are established by the Civil Code.
The special power of attorney presents the limitation of its limited scope. If additional procedures arise, new powers must be granted. This generates more visits to the notary and more expenses.
In both types, if the attorney-in-fact exceeds their powers the acts can be challenged. The courts declare the operations carried out outside the power null and void. The judicial process is long and costly.
The death of the principal extinguishes any power of attorney. The heirs must initiate the inheritance procedures to continue with the management. The same happens if the attorney-in-fact passes away. These events limit the long-term usefulness of both documents.
Requirements to grant a power of attorney before a notary
The principal must identify themselves with a valid DNI, NIE or passport. The notary verifies the legal capacity to grant the document. The presence of the attorney-in-fact is not required at the moment of signing.
It is useful to prepare the attorney-in-fact's information: full name, identification number and address. It is also good to have clear the details of the act or acts that are to be delegated.
The notary drafts the text according to the instructions. The client can read the draft and request changes. Once agreed, the signing proceeds.
The average notarial tariff for a power of attorney ranges between 30 and 60 euros plus VAT. Powers for use abroad with the Hague Apostille add between 20 and 40 euros additionally. Payment is made in the notary's office itself.
After signing, an authorized copy is delivered. This copy is the one the attorney-in-fact presents in banks, registries or administrations. It is recommended to save a digitized copy.
How to decide what power of attorney to grant in your situation
First, list the procedures you need to delegate. If they are varied and ongoing over time, the general power of attorney is more practical. If it is only a specific operation, choose the special power of attorney.
Evaluate the degree of trust. When delegating to a close and responsible family member, the general power of attorney reduces procedures. When delegating to a professional third party, the special power of attorney offers greater control.
Consider the expected duration. For needs of a few months it is preferable to indicate an expiration date. This option is easier to include in a special power of attorney.
A specific case helps to understand it. Ana lives in Bilbao but accepted a one-year contract in Frankfurt. She needed her brother to manage her bank account at a bank in Bilbao to pay the mortgage and the electricity bills. She did not want him to be able to sell her car or her apartment. Ana granted a special power of attorney that expressly indicated the permitted operations in account number 123456789 of the Bilbao branch. The document was signed in a notary office in Bilbao. Her brother was able to make the payments without problems and Ana avoided unnecessary risks.
Always consult with the notary before deciding. The professional can suggest the most suitable text according to the details explained. Good advice avoids having to repeat the process.
These procedures can be done online. The case is described, identity is verified and a video call is made with the notary.