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What is a power of attorney used for, and when is it needed?

A notarized power of attorney is an official document that allows one person to authorize another to carry out specific transactions on their behalf. It is especially used when the person cannot be present in person, when the transaction requires technical knowledge, or when representation is needed.

The scope of a power of attorney varies depending on the transaction involved. For that reason, the limits of the authority should be written clearly when the document is prepared, using precise definitions rather than general wording whenever possible. This helps prevent possible disputes for both the person granting the power and the authorized representative.

In which transactions is a power of attorney required?

  • Property registration, vehicle purchase and sale, and similar transfer transactions
  • Litigation follow-up, legal representation by a lawyer, and official applications
  • Banking, subscription, company and commercial transaction processes
  • Applications involving inheritance, tax, municipalities, or public institutions

What are the types of power of attorney?

Types of power of attorney are mainly classified according to the breadth of authority granted. The most common distinction is between a general power of attorney and a special power of attorney. A general power of attorney grants broader representation authority, while a special power of attorney is issued only for a specific transaction or limited matter.

In practice, there are also different powers of attorney prepared according to the type of transaction. For example, the wording used for property transactions, vehicle sales, litigation follow-up or company representation is not the same. That is why it is important for the document to be drafted in a way that matches the transaction it will be used for.

Most commonly used types of power of attorney

  • General power of attorney: Grants broad authority to act in multiple matters and transactions.
  • Special power of attorney: Prepared for a single transaction or a specific subject.
  • Powers of attorney given to lawyers for litigation and case follow-up
  • Powers of attorney specific to land registry, vehicle sales or banking transactions

How does the notarization process work?

Power of attorney issuance starts with determining exactly which transaction the authority will cover. In the text prepared at the notary public, the identity of the attorney-in-fact, the subject they are authorized to act on, and the limits of that authority must be clearly stated. Before signing, the text should be read carefully to make sure the scope has been written correctly.

At the application stage, a valid identity document and basic information about the person receiving the authorization are usually requested. Depending on the type of transaction, however, additional documents, extra information or special wording may be required. For transactions involving foreign elements, company representation authority or special legal matters, it may be useful to get advance information from the notary public or the relevant expert.

Required documents and points to watch

  • Required documents start with a valid identity document.
  • The attorney-in-fact's first name, surname and identifying details must be provided correctly.
  • Depending on the transaction, title deed details, license plate number, case file information or company name may be required.
  • Additional procedures may apply in cases involving a foreign language, health conditions or special forms of representation.

Before a power of attorney is issued, it should also be considered whether the document will be open-ended or limited to a specific transaction. When in doubt, keeping the scope narrow and authorizing only the necessary powers is generally the safer approach. To ensure the most up-to-date practice, getting information from the notary public before the transaction can help reduce missing details later on.

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