Special Power of Attorney to Sell a Realty or Appear in Pre-trial | PRACTICAL EXERCISES

Below is a comprehensive discussion tailored for law students, bar reviewees, or new practitioners in the Philippines, covering key points on Remedial Law, Legal Ethics, and the practical drafting of a Special Power of Attorney (SPA) for selling real property or appearing during pre-trial. Included as well is a sample form. This discussion aims to be instructive, detailed, and meticulous.


I. OVERVIEW OF SPECIAL POWER OF ATTORNEY (SPA)

A. Definition and Purpose

  1. Power of Attorney (POA): An instrument in writing whereby one person (the Principal) authorizes another (the Attorney-in-Fact or Agent) to act on the Principal’s behalf in one or more transactions.

  2. General vs. Special Power of Attorney:

    • General Power of Attorney confers broad powers on the agent to manage the principal’s affairs.
    • Special Power of Attorney (SPA) grants authority only for specific or particular acts, such as selling a parcel of land or appearing in a particular litigation step (e.g., pre-trial).
  3. Relevance in Philippine Setting:

    • The Civil Code of the Philippines (Arts. 1868 to 1872, among others) and relevant jurisprudence govern agency relationships.
    • For sale of real property, the general rule is that the authority must be specific and express, typically through an SPA.
    • For procedural matters, especially in civil actions, a representative who is not a duly licensed lawyer must possess a Special Power of Attorney to appear in court and enter into binding agreements.

II. SPA TO SELL REAL PROPERTY

A. Legal Basis

  1. Civil Code Provisions:

    • Article 1874: “When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be in writing; otherwise, the sale shall be void.”
    • Article 1878 (5): Enumerates that for the agent “to sell or to mortgage land”, a Special Power of Attorney is required.
  2. Form and Requirements:

    • Must be in writing.
    • Must clearly state that the agent has authority to sell the specific property.
    • Exact property description (location, technical description, title number, area) should be provided.
    • Typically notarized, because real estate transactions in the Philippines require notarized instruments for registration purposes and to bind third parties.
  3. Scope of Authority:

    • The SPA should state the authority to negotiate the terms of the sale, sign the Contract to Sell or Deed of Absolute Sale, and other ancillary documents (e.g., tax declarations, BIR forms, etc.).
    • May also include authority to receive earnest money, deposits, or the purchase price on behalf of the Principal.
    • Principal can choose to limit or expand the authority as needed (for instance, restricting the price range).
  4. Notarial and Registration Considerations:

    • Notarization gives the instrument a public document status, ensuring authenticity.
    • For presentation before the Registry of Deeds or other government offices, the original notarized SPA is commonly required.
    • Foreign-based Principals should have their SPA consularized or apostilled depending on the jurisdiction.

III. SPA TO APPEAR IN PRE-TRIAL

A. Significance in Civil Procedure

  1. Pre-Trial: Under the 2019 Amendments to the Rules of Civil Procedure (A.M. No. 19-10-20-SC), the pre-trial is mandatory and aims to simplify issues, consider admissions, stipulations, possible amicable settlement, and other matters that facilitate a just, speedy, and inexpensive disposition of the case.

  2. Authority to Bind the Principal:

    • A pre-trial conference often involves possible compromise and stipulations that bind the parties.
    • Rule 18, Section 4 of the Rules of Civil Procedure requires that parties must appear in pre-trial personally or by a representative who has a written Special Power of Attorney to enter into amicable settlement, submit to alternative modes of dispute resolution, and perform other acts during the pre-trial.
    • If the representative is not a lawyer or is someone other than the party, the SPA must expressly grant the power to compromise or submit to alternative dispute resolution, if applicable.
  3. Requirement of Personal Service or Appearance:

    • As a general rule, the party-litigant must attend the pre-trial. However, if attendance is not feasible, a duly authorized agent or attorney-in-fact with an SPA can attend provided the SPA includes powers to:
      1. Enter into compromise or settlement.
      2. Make admissions of facts and documents.
      3. Enter into stipulations.
  4. Effect of Non-Compliance:

    • Failure to comply with the requirement of appearance with proper authority may lead to adverse consequences, including dismissal of the complaint or waiver of defenses, depending on which side fails to comply.

IV. LEGAL ETHICS CONSIDERATIONS

  1. Lawyer’s Duty to Verify Authority:

    • A lawyer who represents that he or she has authority to settle or compromise must ensure the client has given such power.
    • Engaging in unauthorized compromise can expose the lawyer to administrative, civil, and/or criminal liability.
  2. Conflict of Interest:

    • The attorney-in-fact must act solely in the interest of the principal.
    • The lawyer must ensure that there is no conflicting interest or representation.
  3. Professional Responsibility:

    • The new Code of Professional Responsibility and Accountability (CPRA), which replaced the old Code of Professional Responsibility in 2023, emphasizes the lawyer’s obligation to uphold the client’s interest within the bounds of law, and to refrain from misrepresentation.
  4. Validity of Acts by Attorney-in-Fact:

    • Acts done within the scope of the SPA bind the principal.
    • Acts that exceed or are outside the scope of the SPA may be void or voidable, depending on circumstances.

V. PRACTICAL DRAFTING TIPS FOR SPAs

  1. Accuracy of Names and Details:

    • Spell the name of the Principal and Attorney-in-Fact correctly (middle name, if any, inclusive).
    • Include addresses, marital status, citizenship, etc.
  2. Clear Statement of Authority:

    • Enumerate clearly each authority granted, e.g., “to sell, to receive payment, to appear in pre-trial, to compromise…”.
  3. Limiting or Expanding Authority:

    • Indicate price ceilings/floors, or certain conditions for sale if desired.
    • In litigation matters, specify if the authority includes the power to enter into compromise or admit liability.
  4. Property Description:

    • Provide the property’s Transfer Certificate of Title (TCT) number or Condominium Certificate of Title (CCT) number (if applicable), its registered owner(s), location, technical description, boundaries, and area.
    • Attach a certified true copy of the title if necessary.
  5. Notarization / Consularization:

    • Always have the SPA notarized in the Philippines or consularized/apostilled abroad to ensure legal efficacy and ease of recognition by government offices and courts.
  6. Indicate Effective Period (Optional):

    • You can specify a termination date or condition for the SPA’s validity.
  7. Number of Originals:

    • Prepare multiple original copies if you anticipate needing them for different government agencies, lenders, or third parties.

VI. SAMPLE FORM OF SPECIAL POWER OF ATTORNEY

Disclaimer: This sample is for academic and illustrative purposes only. Consult the latest statutes, rules, and local notarial practices for any required modifications.


SPECIAL POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS:

I, JUAN DELA CRUZ, of legal age, Filipino, married, and a resident of No. 123 Mabini Street, Manila, Philippines, hereinafter referred to as the “PRINCIPAL,” do hereby name, constitute, and appoint PEDRO SANTOS, of legal age, Filipino, married, and a resident of No. 456 Rizal Avenue, Quezon City, Philippines, hereinafter referred to as the “ATTORNEY-IN-FACT,” to be my true and lawful Attorney-in-Fact, for me and in my name, place, and stead, to do and perform the following acts:

  1. To Sell Real Property
    a. To offer for sale, negotiate, and sell the real property covered by Transfer Certificate of Title No. 123456, registered in my name, located at Brgy. Bagong Pag-asa, Quezon City, with an approximate area of 300 square meters.
    b. To sign, execute, and deliver any and all documents necessary to effect the sale, including but not limited to the Contract to Sell, Deed of Absolute Sale, and other documents, and to represent me before the Registry of Deeds, Bureau of Internal Revenue, City Assessor, and other government agencies.
    c. To receive and collect any and all proceeds of the sale, to issue corresponding receipts, and to perform all other acts necessary to consummate the sale.

  2. To Appear in Pre-Trial
    a. To appear before any court or quasi-judicial body in which I am a party-litigant, specifically in the case entitled Juan Dela Cruz vs. XYZ Corporation, docketed as Civil Case No. 78910, pending before the Regional Trial Court of Quezon City.
    b. To participate in the pre-trial conference, enter into stipulations or admissions of fact, submit to alternative modes of dispute resolution, and enter into a compromise agreement or amicable settlement under such terms and conditions as my Attorney-in-Fact may deem just and reasonable.
    c. To sign pre-trial briefs, manifestations, motions, or other pleadings incidental to the pre-trial, and to perform all acts and things requisite and necessary to carry into effect the foregoing authority.

HEREBY GIVING AND GRANTING unto my said Attorney-in-Fact full power and authority to do and perform all and every act requisite or necessary to carry into effect the foregoing powers, as fully to all intents and purposes as I might or could lawfully do if personally present, and hereby ratifying and confirming all that my said Attorney-in-Fact may do or cause to be done under and by virtue of these presents.

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ________, 20 at __________, Philippines.

__________________________
JUAN DELA CRUZ
(Principal)

Signed in the presence of:

__________________________            __________________________
Witness                                Witness

ACKNOWLEDGMENT

Republic of the Philippines)
__________ ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, this __ day of ________, 20, personally appeared:

Name Competent Evidence of Identity Date/Place Issued
Juan Dela Cruz (ID details)

Known to me and to me known to be the same person who executed the foregoing Special Power of Attorney and acknowledged that the same is his free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and at the place above written.

Notary Public

Doc. No. ____;  
Page No. ____;  
Book No. ____;  
Series of 20__.

VII. CONCLUSION

A Special Power of Attorney is a critical legal instrument in the Philippines whenever a principal desires to sell real property through an agent or appoint someone to represent them in pre-trial. Philippine law, under the Civil Code and Rules of Court, requires specific and written authorization for both (1) selling real property and (2) entering into compromise agreements in court litigation.

Attorneys must diligently observe legal ethics by confirming the authority granted to them (or to a non-lawyer representative of the client) to avoid unauthorized representation or unethical dealings. From a remedial law standpoint, ensuring proper authority at pre-trial prevents dismissals, waiver of rights, or other adverse outcomes.

When drafting an SPA, be clear and specific about the scope, abide by notarial rules, and tailor the instrument to the principal’s needs. This meticulous drafting not only ensures enforceability but also protects the principal’s interests—and by extension, upholds the integrity of legal processes.


References

  • Civil Code of the Philippines (Republic Act No. 386), Articles 1868-1878
  • Rules of Court, 2019 Amendments to the 1997 Rules of Civil Procedure
  • New Code of Professional Responsibility and Accountability (CPRA), 2023
  • Philippine Supreme Court Jurisprudence on Agency and Pre-trial Procedures

(This document is for educational purposes and does not constitute legal advice. Consult a duly licensed Filipino attorney for specific legal concerns.)

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.