Selling a property is incredibly time-consuming, not just for real estate agents but also for sellers and buyers.
Let’s face it—sometimes, the people involved just don’t have the time or the energy to dedicate to the entire process. Why? Because they’re already juggling a million other professional commitments that take up most of their day, or perhaps, they’re sipping cocktails on a tropical island far from Italy (lucky them!).
In the luxury real estate sector—where I’ve spent many years working—dealing with absentee buyers or sellers is pretty much business as usual, especially for international clients.
So, how do we solve this delightful conundrum of buying or selling a property when one party is halfway around the globe?
Enter the power of attorney. Yes, that magical piece of paper where someone else, a trusty third party, gets to do all the heavy lifting on behalf of the absent buyer or seller. Full powers (or close enough) are granted, and voilà—your transaction can proceed without a hitch.
Now, let's dive into the fascinating world of power of attorney with a generous dose of irony.
In a heartbeat
- PoA is the perfect solution when you're too busy or far away to handle real estate transactions in Italy.
- Time, Money & Language Barriers: PoA saves you from expensive plane trips and confusing legal jargon—especially when contracts must be drafted in two languages with interpreters.
- Special PoA: This power of attorney is laser-focused on real estate transactions, expiring the moment the sale is completed. It’s quick and affordable too, costing between €200-€700 (including translation and apostille) and taking just 30 minutes to prepare—a bargain in the world of property deals!
- Avoiding Mistakes: Tailor the PoA to your needs with specifics—who's doing what, time limits, and financial details. And, whatever you do, avoid making it irrevocable—unless you're looking for unnecessary headaches!
Definition and common use cases
A power of attorney is a document through which an individual, known as the "principal," grants authority to another individual, called the "agent," to act on their behalf. The agent, empowered by this authority, can make decisions and take actions that directly impact the principal.
The most common scenarios where a power of attorney comes into play? Oh, you know, just the small stuff: real estate transactions, inheritance and succession issues, business management, and of course, legal representation. You know, no pressure at all.
But today, let’s focus on the juiciest part—the real estate power of attorney. Grab your coffee, because things are about to get interesting!
What is a POA in real estate in Italy?
A real estate PoA is used to buy or sell a property when the individual cannot be physically present and appoints a trusted person to act on their behalf.
When a foreigner wants to buy a house in Italy, they typically grant power of attorney to a trusted individual (often a lawyer, but not necessarily—just someone who knows their legal stuff inside out). This trusted person’s job is to sign the preliminary contract or the final deed of sale on behalf of the buyer. Simple, right?
Advantages of the power of attorney
- Time and Money: The big win here is saving both time and money, especially for those who don’t live in Italy and want to avoid the hassle (and cost) of hopping on a plane for every signature.
- Language Barriers: Power of attorney is also your ticket to bypass language headaches. If the agent speaks Italian, you’re golden! Otherwise, when the buyer or seller doesn’t speak the language, the notary must draft the contract in both languages, using an interpreter, and yes, two witnesses! Talk about turning a simple signing into a multi-language circus—and a pricier one.
But wait, there’s an unsung third benefit that no one likes to mention: avoiding awkward face-to-face encounters with the other party, especially if things got... let’s say, "tense" during negotiations! A little distance can go a long way!
Types of Power of Attorney
When it comes to powers of attorney, we usually need to distinguish between two types:
- General Power of Attorney (Procura Generale): This gives broad authority over a range of legal and financial matters—think banking, business management, and paying taxes. It’s the go-to option for long-term or ongoing needs.
- Special Power of Attorney (Procura Speciale): More focused, this one grants limited authority for specific tasks, like buying property or handling real estate inheritance. It’s ideal for one-off transactions, such as signing the final deed of sale.
In real estate, the special power of attorney is the star of the show. Here, the agent (or "procuratore") is given full power, but only within the scope of the property transaction—accepting the irrevocable offer, signing the preliminary contract, and finally, sealing the deal with the final deed of sale.
And as soon as that signature hits the final sale document, poof! The special power of attorney automatically expires. No lingering authority, no ongoing obligations—just a neat and tidy transaction.
How to create a Power of Attorney in Italy
A power of attorney for selling or purchasing property must be in writing and notarized (as per Article 1392 of the Italian Civil Code [1]) in order to be valid.
But don’t worry—the fact that a notary is required doesn’t mean it’s so complex. Quite the opposite!
If you’re in Italy, getting a power of attorney is as simple as visiting a notary with your passport and Italian tax code (codice fiscale), along with a copy of the identity document and tax code of the person you’re granting the power to. Since this is a unilateral act, a power of attorney can be signed even if the agent isn’t physically present.
If you’re outside of Italy, things are a bit different. You’ll need to visit a notary in your country and prepare a special power of attorney, translated into Italian.
Warning: If you’re married under joint property ownership, your spouse must also sign the document!
Does the power of attorney made abroad have to be legalised or apostilled?
Suppose the country where you’re drafting the document is a signatory to the 1961 Hague Convention. In that case, all you need is for the power of attorney to be apostilled. However, suppose the country hasn’t signed the Hague Convention. In that case, you’ll have to go through legalizing it at the Italian Consulate in that country.
Wondering what an apostille is? It’s essentially a fancy stamp that certifies the authenticity of the signature on the document.
Most countries have joined the Hague Convention, and honestly, every foreign power of attorney I’ve come across in recent years had an apostille—smooth sailing, no issues at all!
How much does a power of attorney cost?
The cost of a special notarial power of attorney ranges from €200 to €700, depending on the notary, and this usually includes translation and the apostille—a laughably small amount compared to the total investment you’re making.
One great thing about the special power of attorney is that, unlike the general one, it doesn’t need to be registered with the Revenue Tax Office (Agenzia delle Entrate), and only a single copy needs to be signed.
The low cost and the lack of multiple copies show just how quick this process is. In about 30 minutes, your power of attorney is ready and legally valid—practically instant in the world of paperwork!
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What a Power of Attorney should include
Tip: Agreeing on the text of the power of attorney in advance is helpful not only to speed up the process when signing it at the notary’s office, but also crucial to avoid certain risks (which we’ll get to later).
As a general rule, the more specific the power of attorney text, the fewer risks you run. So, don’t hesitate to add limitations in the text for extra protection.
A typical real estate special power of attorney should include:
- Identification details of the person granting the power, including their marital property regime if married.
- Identification details of the representative (the agent).
- Identification details of the property, including cadastral information.
- Any possible indication of irrevocability (which I don’t recommend).
- Any limitations on the power of attorney’s scope, such as:
The more precise the details, the more protected you are.
When Does a PoA Expire?
A power of attorney, whether it’s the special or general type, ends in one of the following cases:
- Revocation by the principal.
- Resignation of the agent.
- Death of either the principal or the agent.
- Expiration of the term (if specified in the document).
- Completion of the purpose for which the power of attorney was created.
For a real estate special power of attorney, it ends automatically with the completion of the sale.
How to Revoke a Power of Attorney
Revoking a power of attorney is a straightforward process. The principal simply needs to draft a revocation document, have it notarized, and deliver it to the agent. This effectively cancels the agent's authority and ends the power of attorney relationship. Afterward, I highly recommend informing the agent via registered letter or certified email (PEC) and notifying any third parties who contacted your agent.
How to avoid common mistakes
When a power of attorney is drafted with careful attention to detail, the risks are minimal. Here are my heartfelt tips:
- Verify its validity with the notary who drafted it.
- Avoid irrevocable powers of attorney whenever possible.
- Choose the right agent—trust is vital.
- Customize the terms of the power of attorney as much as you can.
- Include an expiration date, even for a special power of attorney, to avoid any surprises down the road.
Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. Frankly, I don't know what is more complicated. More than 20 years ago, I moved to Italy from Eastern Europe, where I taught English. I have always had a deep-seated passion for houses; as a child for the Barbie house, and now as a real estate professional, my love for luxurious properties is unwavering.
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