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Frequently Asked Questions (FAQs)


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Is it safe to execute a Special Power of Attorney (SPA) when selling a property?

Yes. A Special Power of Attorney (SPA) is merely a document establishing that the property owner authorizes an agent to sell his property.

Ownership remains with the owner, and all the rights, therefore, on the property remain with the owner. The agent, in a sale of property, is given the authority to carry out the selling of property.

An SPA 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 with a primary purpose to evidence agent’s authority to third parties with whom the agent deals.

The SPA confers a contract of agency between the principal and the agent. Agency establishes a fiduciary relationship giving power to an agent to contract with a third person on behalf of the principal. Furthermore, having Agency gives the power to affect the principal’s contractual relations with third persons.

The requirement for the execution of an SPA is provided under Article 1878 of the New Civil Code:

ARTICLE 1878. Special powers of attorney are necessary in the following cases:
(1) To make such payments as are not usually considered as acts of administration;
(2) To effect novations which put an end to obligations already in existence at the time the agency was constituted;
(3) To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action or to abandon a prescription already acquired;
(4) To waive any obligation gratuitously;
(5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration;
(6) To make gifts, except customary ones for charity or those made to employees in the business managed by the agent;
(7) To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration;
(8) To lease any real property to another person for more than one year;
(9) To bind the principal to render some service without compensation;
(10) To bind the principal in a contract of partnership;
(11) To obligate the principal as a guarantor or surety; musawi
(12) To create or convey real rights over immovable property;
(13) To accept or repudiate an inheritance;
(14) To ratify or recognize obligations contracted before the agency;
(15) Any other act of strict dominion. (n)

When the principal executes an SPA in favor of an agent referring to the sale of a particular property, the buyer has every reason to rely on a person’s authority (the agent) to sell the particular property.

Need further information and assistance regarding Special Power of Attorney? Talk to our team at FILEDOCSPHIL to know more about the requirements and process. Call us today at (+632) 8478 5826 or send an email to for more information.

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