What is the Power of Attorney ?
A Power of Attorney is a legal document whereby written instructions and authorities are given to a third party (Agent). All powers and actions instructed by the Principal to the Agent are set out clearly in the PoA. In Cyprus we have two types of PoAs: the Special Power of Attorney and the General Power of Attorney.
There are many reasons why someone may use a PoA, including but not limited for representing to governmental authorities, signing of agreements/legal documents, entering into contracts, selling/buying or transferring property e.t.c
The PoA is a safe way for the Principal to carry out all his scheduled transactions even if s/he is absent or unavailable.
Usually the PoA is prepared when the Principal might be unable to be present for a specific action. e.g. When buying a property in Cyprus, the Buyer must go abroad. The Agent through the PoA may sign the sale agreement and represent the Buyer at the Land registry for finalizing the transfer on his name.
In our law -Contract Law Cap.149 – there is specific provision for the formality of a PoA.
What type do I need? Special Power of Attorney or General Power of Attorney?
When drafting a PoA you should have in mind which type of PoA you need. PoAs can either be General or Special.
The Principal should use a Special power of attorney when the instructions given to the Agent are specifically and clearly set out in the document for a specific actions e.g. the Principal gives instructions to the Agent to sign a Sales Agreement for a specific property, for specific amount e.t.c.
On the other hand, a General Power of Attorney provides the agent with more extensive and general powers, such as to enter into a sales agreement for the purchase of any kind of property, for any amount, to represent the Principal to any authority, to buy or sell properties e.t.c.
What are the legal requirements for a Power of Attorney?
Since the law does not set specific specimens for drafting a PoA, it is advised that such a document should be prepared with greatest care and diligence for the protection of all parties involved. However, the following formalities must be followed:
-Clear instructions to the agent to act on his/her behalf
-Should be signed by the Principal. If the PoA has more than one page, then all pages must be signed.
-A date of signing is mandatory
-Should be duly certified by a Certifying Officer (to confirm that it was indeed the principal signing the document)
-The Principal and the Agent must be both adults and in good mental health.
When is a Power of Attorney terminated or comes to an end?
A Power of Attorney is instantly terminated when the Principal or the Agent pass away, when the Principal clearly revokes the PoA , when either of the parties are declared mentally incapable or when the instructions given in the PoA have been completed.
Can I get a Power of Attorney from a person who is mentally incapable?
Only the Court in Cyprus may declare a person as mentally incapable and may appoint a curator to the person and/or property of such person. Usually the closest member of the family may file an application at the Court.
If a person is declared as ‘mentally incapable’ then he/she cannot sign a PoA. It is very important that the Principal is fully aware of the instructions given to the Agent since he/she will ratify and confirm and indemnify whatever his/her Agent will do or cause to be done by virtue of the PoA.
Are there any powers not allowed under a Power of Attorney?
All instructions and authorities mentioned in the PoA must not be illegal (e.g.to execute a crime) and possible to execute( e.g. fly to the moon). In such a case, all these instructions are considered to be invalid and not binding to the Agent.
Disclaimer: This document provides information and guidance only and it is not a legal advice. we do not accept any liability that may arise out of the use or misuse of this information