POWER OF ATTORNEY

Article 1868, Civil Code of the Philippines:

Any person may authorize another to render some service

or do something on his behalf through a contract of
agency.

A power of attorney is an instrument in writing by which one person, as principal,

appoints another as his agent and confers upon him the authority to perform certain
specified acts or kinds of acts on behalf of the principal.

This is usually evidenced by executing a power of attorney, which may either be general
or special. 

For example, you might want a power of attorney if you are out of the country and
unable to carry out a business transaction yourself, or if your abilities are limited by a
medical condition. 
Special Power of Attorney Vs. General Power of Attorney

What Is a General Power of Attorney?

A general power of attorney is broader, giving the agent the ability to make all legal and
financial decisions on behalf of the principal.
A general power of attorney grants the agent the legal right to make all financial and
legal decisions on behalf of the principal.

An individual who will be out of the country for a year may give an agent extensive
powers to carry out transactions such as personal and business financial transactions,
bill payments, life insurance purchases, charitable donations, real estate
management, and the filing of tax returns.

What Is a Special Power of Attorney?

It is a legal document that authorizes one person, called an agent or an attorney in fact,
to act on behalf of another person, known as the grantor or principal, under specific,
clearly laid-out circumstances.

A special power of attorney allows a person (the principal) to authorize another

individual (the agent) to make legal decisions on his/her behalf.

The agent can act on behalf of the principal only under specific, clearly defined
circumstances.

While a special power of attorney gives the agent authority for a limited set of actions
under a restricted set of circumstances—such as buying or selling a home, withdrawing
money from an account, or running a business—a general power of attorney is more
broad.

What to look in an SPA:

1. The name, address and other details of the principal;

2. The name, address and other details of the agent;
3. Authority given to the Attorney-in-fact;
4. Date and the place where form is signed;
 5. The principal's signature;
6. The agent’s signature;
7. The principal’s ID with expiry date;
8. Attorney-in-fact’s ID with expiry date;
9. Signature of notary public.

Executing an SPA when abroad:

A consularized SPA is used when appointing an agent in the Philippines when one is
not in the country.

If signed abroad - Consularized:

The OFW or Grantor or executor of SPA must sign the SPA Document and proceed to a
Philippines consular office to have it consularized (the equivalent of notarization here in
the Philippines) and then original copies be sent here via courier.

If signed in the Philippines - Notarized:

The cheaper alternative, it just needs the IDs of Attorney in Fact and the passport of the
grantor which is the client or the OFW. The passport needs to be photocopied and date
of signing and notarization of the Special Power of Attorney (SPA) shall have the same
date as the OFW's stay here in the Philippines as seen on the arrival and departure
stamps on the Passport.

An SPA does not signify ownership to the Attorney in Fact but only authorizes
them on some aspects of documentation or receiving of property.

Termination of Principal-Agent relationship:

Art. 1919 (Civil Code). Agency is extinguished:
1. By its revocation;
2. By the withdrawal of the agent;
3. By the death, civil interdiction, insanity or insolvency of the principal or the agent;
4. By the dissolution of the firm or corporation which entrusted or accepted the
agency;
5. By the accomplishment of the object or purpose of the agency;
6. By the expiration of the period for which the agency was constituted.
Whether the SPA is still valid or, if it has expired depends therefore on several grounds.
As to the expiration of the SPA, the general rule is that the SPA, even if it was executed
several years ago, continues to be valid and you may still use the same.
Other certain conditions that will affect the validity or “expiry” of the SPA:
1. If the SPA provides an expiration date. In some instances, the special power of
attorney contains a provision that it is only valid for a certain period, for example,
only for one (1) year. In such a case, the SPA expires within that date and no
longer has any effect or validity beyond such period as the authority given has
expired.
 2. Death of Principal. In which case, the general rule is that agency is likewise
extinguished or simply put, the SPA dies along with the principal and is no longer
valid.

3. Revocation of the authority given during the lifetime of the principal (Express or
Implied). If the principal has revoked the agency, or the special power given, in
which case you must ascertain that no revocation has been made by the
principal.

FREQUENTLY ASKED QUESTIONS

CTS FOR MARRIED INDIVIDUALS:
Name in the Contract
1. XYZ, married to ABC; or
2. Spouses XYZ and ABC
RULE:
In selling properties
If married, the spouse must signify his or her consent.  Otherwise, the sale is void.
Under the family Code, if the spouse sold the property without the consent and
knowledge of the other spouse, then the sale is void. 
However, the transaction shall be considered as a continuing offer and may be
perfected upon acceptance of the other spouse.
On the other hand, if the spouse sold the community property with the knowledge but
without the consent of the other, the contract is merely annullable. 
The other spouse has 5 years from the date of the contract to go to court and seek the
annulment of the contract.
In buying properties
No need for spousal consent but best to include.  It may form part of the Absolute
Community of Property or Conjugal Partnership of Gains anyway.
 Ensure that all parties are of legal age (18 years of age and above), of sound
mind (not declared insane) and not laboring under any restrictions (under
guardianship, etc.)
 State the names, addresses, civil status and Tax Identification Number of the
parties.
ASSIGNMENT/TRANSFER/WAIVER OF RIGHTS
Requirements:
1. Written request subject to approval by CitiGlobal;
2. Payment of 25K transfer fee (old and prevailing RA);
3. Property is subject to price adjustment;
4. Notarized/Consularized deed of assignment, transfer or waiver; and
5. Notarized/Consularized SPA, if applicable.
In case of death of original buyer, hence, transfer of rights to heirs is by operation
of law:
The demise of the buyer does not nullify or dissolve the contract. The decedent’s heirs
shall assume whatever rights and obligations he may have under the contract. The
heir(s) of the deceased will be regarded as substitute in lieu of him who is the original
party to the contract.
Requirements:
 Certified True Copy of decedent’s Death Certificate
 SPA from co-heirs, if any, authorizing representation of one of the heirs and
authorizing transfer of rights and obligations
Note: Mortgage Redemption Insurance (MRI) will prevent the foregoing situation.