Power of Attorney is a legal instrument that authorizes an agent to act on behalf of another individual. It is essential to understand its nuances and requirements for conducting transactions like property deals in Thailand.
A PoA can be used to delegate various matters such as financial management, business operations, or legal proceedings. The document should be carefully drafted to meet the necessary legal requirements.
What is a Power of Attorney?
A Power of Attorney is a legal document that gives an individual, legally named the Agent, authority to act on behalf of the person who appointed them, legally known as the Grantor. It can be either general, conferring broad powers, or special, limited to specific deeds. It may be revoked or terminated at any time by the Grantor.
Powers of Attorney in Thailand are important tools for facilitating various legal transactions, especially those that cannot be executed or accessed by the Grantor in person. In such cases, it is common for foreigners to seek the help of lawyers in Thailand to draft a Power of Attorney that will be recognised and accepted by the relevant institutions or Thai government agencies.
Whether the power is to be used for buying and selling real estate, registering property or other legal matters, a PoA must be drafted carefully so that the scope of authority granted and duration are clear and specific. It is also advisable to have the document notarized in order to make it more enforceable.
Most people who request a PoA do so as a means of planning for possible incapacity. In such a situation, a “durable” power of attorney can be drafted, which allows the Grantor to choose another person to handle their finances or medical decisions in the event of a mental or physical impairment.
Legal Requirements
The Power of Attorney is a legal instrument that authorizes another person to act on your behalf. The document is often used to delegate authority in financial, business or legal matters. Its use carries significant responsibilities, which makes it important to understand the legal framework and adhere to proper procedures in order for the instrument to be effective. For this reason, it is highly recommended that you seek professional legal advice to draft and execute a Power of Attorney.
The person who grants the Power of Attorney is known as the Principal or Grantor, while the person who receives the power is the Agent. The Power of Attorney can be a general one, which gives broad powers, or a special one that covers a specific matter.
A general Power of Attorney will remain in effect even if the principal becomes incapacitated, while a special Power of Attorney will terminate when the event specified in the document occurs. Whether it is for property transactions, business operations or legal representation, the documents must be clear and precise in order to avoid any dispute. For PoAs executed abroad but intended for use in Thailand, it is also necessary to have the document authenticated by a notary or through the Thai embassy or consulate.
A revocation of a Power of Attorney must be issued in writing by the principal, and all parties who may be affected by the revocation (including banks and business partners) should be informed.
Drafting a Power of Attorney
A Power of Attorney allows you to entrust a person with authority to manage important matters on your behalf, including property transactions and business operations. Our legal team can expertly draft a POA that best suits your individual needs.
Power of Attorneys are governed by the Thai Civil and Commercial Code (CCC) and can be either general, giving broad powers, or specific and limited in scope and duration. The CCC prescribes certain formal and substantial requisites that the instrument must conform to in order to be considered valid and enforceable.
When drafting a Power of Attorney, it is crucial to ensure that the document is clear and precise to avoid any confusion or disputes in the future. It is also necessary to verify the specific requirements of the institution or authority where it will be used, as they can vary greatly. For example, the Land Department requires a specific standard form of POA (Tor dor 21 for a house or Chor 21 for a condominium) to be used when selling or registering property on their behalf.
We can assist in ensuring that your POA complies with all of the relevant requirements and is correctly translated into Thai. In addition, we can ensure that the signatures on the document are certified by a Notary Public in Thailand or at a Thai Consulate or Embassy abroad.
Notarization
Power of Attorney is a legal instrument that grants another person authority to act on your behalf. It can either be general for broad powers or special, which has a limited scope and duration. While this instrument is a useful tool, it must be carefully drafted to meet the requirements of the institution or agency where you plan to use it.
For example, the Land Department requires a specific standard form (Tor dor 21 for houses or Chor 21 for condominiums) to be used when selling or registering property. The same applies to many other government offices. The POA must also be notarized to be enforceable.
Our law firm has the expertise to help you draft and execute a PoA that meets the requirements of Thai laws and will be recognized and accepted by all Thai institutions, including government agencies and banks, as well as other businesses. We also understand local practices that may influence the drafting process and can guide you through any potential procedural hiccups.
For foreigners conducting business in Thailand, a well-drafted and properly executed POA is a necessity. This will help you delegate financial management and other business operations to a trusted representative, ensuring smooth and efficient operation in your absence. It is important to choose a trustworthy agent and to consider the specific powers you wish to grant them. You should also ensure the PoA is correctly translated and registered, if applicable.
