A power of attorney is a very useful tool that can come in handy when selling a vehicle, picking up mail, dealing with the authorities, or re-writing your utility bills. Are you hesitant about whether one template can be used for all these cases and what exactly a power of attorney must contain? We have prepared a clear guide that will answer everything.
A power of attorney is a document that authorises another person to perform a specific legal act. It can cover a variety of areas – from a power of attorney to sign over a car, to dealing with bank and insurance, utilities or the post office.
For example, if you decide to change energy suppliers, a power of attorney for energy will help simplify the whole process. Likewise when selling a vehicle or dealing with administrative matters.
If you agree with a friend that they can enter into a contract to buy a property for you, a power of attorney is a written confirmation of that agreement. However, in contrast, this is only a unilateral confirmation of such authority, which is intended to be addressed primarily externally, in this case to the homeowner, who will know that the friend can represent you in this matter. If the sale takes place, the rights and obligations arising from it will accrue directly to you.
The person who represents someone else under a power of attorney is called the “agent” and the person who grants the power of attorney is called the “principal.” The power of attorney is executed through the power of attorney agreement. Both the principal and the agent may be a natural person or a legal person.
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You can use a power of attorney to represent another person, for example, when you do not feel sufficiently erudite for certain actions, typically, for example, legal actions and legal representation that you entrust to a lawyer. But the reason can also be much simpler. For example, you are going on vacation or do not have time to deal with certain matters. Then you might instruct a family member, for example, to pick up a parcel at the post office or to enter into a contract on your behalf.
There are generally two basic types of power of attorney:
A power of attorney is usually in writing. In theory, a power of attorney can also be oral, but the condition is that no written form is required for the act (as is the case with the sale of real estate). The second condition is that the person to whom the power of attorney is to be directed is informed of the persons of the principal and the agent and of the scope of the power of attorney.
In practice, however, an oral power of attorney is rather impractical and is definitely not recommended for achieving legal certainty. For a general power of attorney, a written form is always necessary.
On the contrary, even a written power of attorney is insufficient for some acts and a notarised signature or even a notarial deed is required. A power of attorney can be granted for an indefinite period of time or can be limited in time.
When completing the power of attorney templates, it is important to clearly define the scope of the power of attorney – whether it is a power of attorney for a business, vehicle transfer or official business.
The details of the power of attorney are important to its validity. It must contain at least the following information:
The signature of the principal is not required. After all, it is he or she who later proves himself or herself by the power of attorney, and thus his or her consent can be assumed. On the other hand, nothing can be spoiled by it either. It is enough to add a wording such as “I accept the power of attorney in its entirety and affix my signature.”
Tip: Unless there is absolute trust between you and the attorney, we recommend defining the scope of the authorisation in detail – for example, whether the attorney is also authorised to accept the purchase price, sign the attorney’s escrow agreement and other matters related to the main transaction.
A power of attorney expires, for example, after the performance of the act for which it was granted, such as vehicle or energy transfers. Also, a power of attorney to transfer a car expires when the vehicle is transferred to a new owner. You can revoke a power of attorney at any time, which is important to remember when dealing with a power of attorney for energy transcription.
There are several ways in which a power of attorney can lapse. These are:
Tip: Note that as long as the revocation is not known to the agent, the agent’s legal action has the same effect as if the power of attorney were still in force.
A power of attorney to collect a parcel does not have a specific form by law. However, the Czech Post requires an officially certified signature. A special instrument designated by the Czech Post for these occasions is the so-called Receiver’s Certificate, which authorises the attorney to receive parcels, the pension of the other spouse (if not in his/her own hands) and remittances (except for parcels and remittances intended for the addressee’s own hands only) on behalf of the addressee.
Relocation, sale of house or death of customer. These are situations in which energy is transferred to another person. To avoid complicated haggling over the dates on which you will appear at the energy provider’s premises, you can simply settle everything elegantly with a power of attorney. Then all the paperwork can be handled by just one of the parties involved and everything will be considerably simplified and speeded up. Large energy suppliers such as Pražská plynárenská or ČEZ have power of attorney forms available on their websites.
In this context, we also encounter the power of attorney when changing suppliers. New suppliers offer to provide us with a transcription based on a power of attorney as part of their service. In this case, however, be sure to study the contract with your current provider to see if you have, for example, any penalties or other unpleasant surprises hidden in it.
A power of attorney is a very useful tool that can also come in handy when you are transferring a vehicle. For example, if you are selling a car, a power of attorney for car reassignment will make the process easier. Instead of having to make complicated appointments with the buyer, you can handle everything with a vehicle transfer power of attorney, which entitles you to have someone else handle the paperwork.
Vehicle reassignment is another situation where a power of attorney is used. Again, this can simplify a situation where both the seller and the buyer would have to negotiate complicated terms that suit both of them. It is therefore sufficient to provide the buyer with a power of attorney to transfer the car and then the buyer will handle everything himself.
Tip: You can read our article on how to buy and transfer a car.
A power of attorney can be used for the purchase or sale itself, as well as for a partial act such as a registration in the Land Registry. The power of attorney for the sale of real estate should contain, in addition to the general requirements, the identification of the real estate being sold. It is worth listing all the legal acts and actions that the attorney-in-fact is usually allowed to do when selling or buying the property.
The power of attorney for the representation of a party must be signed with a certified signature.
In the context of real estate ownership, we also encounter a power of attorney for representation of a property owner at a HOA (unit owners’ association).
If you want to authorise a person to deal with the succession on your behalf, it is advisable to indicate in the power of attorney all the acts that the attorney may do on your behalf (accept the succession, conclude an agreement on the settlement of the succession, reject the succession, lodge appeals, etc.). It is advisableto inform the notary in advance of the power of attorney and its scope so that he or she is aware of this situation. In such a case, the power of attorney must be in writing.
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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