Article 1878 of the Civil Code: Special power of attorney
Status: In force
What does Article 1878 say?
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.
What does it mean in plain language?
Article 1878 of the Civil Code lists the acts an agent cannot do for someone else without a special power of attorney (SPA). They include selling or buying land, borrowing or lending money, leasing real property for more than one year, making gifts, accepting or giving up an inheritance, and acting as guarantor. A general authority to manage someone's affairs does not cover these acts.
In agency, the person who gives the authority is the principal, and the person who acts for him is the agent.
How does it work in real life?
Arnel, an OFW in Dubai
Arnel works in Dubai and wants his sister to sell his lot in Batangas. He must give her a written special power of attorney that expressly authorizes the sale (Articles 1874 and 1878(5)). Without written authority, the sale would be void under Article 1874.
"Manage my properties"
Arnel's earlier authority only says his sister may "manage my properties". That general authority does not let her sell or mortgage the lot, borrow money in his name, or lease the lot for more than one year (Article 1878, items 5, 7, 8 and 12).
These are made-up examples to show how the rule works. They are not advice for any real case.
What does this mean in practice?
- Accepting or giving up an inheritance through an agent needs a special power (item 13). For dividing an estate without a court case, see extrajudicial settlement of estate.
- For Filipinos abroad, notarization of documents is a consular service. For the appointment process, see the guide to embassy appointments abroad. This page does not cover consular or apostille requirements.
- A contract made for another person without authority is unenforceable unless ratified (Article 1403), but a sale of land without written authority is void under Article 1874.
- For free or low-cost legal help, see where to find legal help.
- For a question-and-answer guide, see when do you need a special power of attorney? The term is explained in special power of attorney.
What does Article 1878 say?
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;
Item (11) covers obligating the principal as a guarantor or surety. The list ends with:
(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.
Which acts matter most in daily life?
| What the agent will do | Item of Article 1878 |
|---|---|
| Sell, buy or donate land or a house | (5) |
| Mortgage land or create another real right over it | (12) |
| Borrow or lend money for the principal | (7) |
| Lease real property for more than one year | (8) |
| Settle a case by compromise, or give up an appeal | (3) |
| Make gifts for the principal | (6) |
| Sign as guarantor or surety for the principal | (11) |
| Accept or give up an inheritance | (13) |
Item (15), "any other act of strict dominion", covers other acts of ownership not listed.
What about selling land through an agent?
Article 1874 adds a rule on form:
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.
In Spouses Alcantara v. Nido (2010), there was no proof of the agent's written authority to sell the lot. The buyers argued the sale was only voidable and could be ratified. The Court affirmed the ruling that the sale was void.
In Pahud v. Court of Appeals (2009), the Court quoted an earlier ruling: the authority to sell must expressly mention a sale or include a sale as a necessary ingredient of the act mentioned. In that case, the Court still held some co-heirs bound by the sale on the ground of estoppel, because they had admitted the sale and stayed silent. That outcome rested on the facts of the case; it is not a general cure for a missing SPA.
Does an SPA need to be in a public document?
Article 1358(3) says a power to administer property, or any other power whose object is an act that appears or should appear in a public document, must appear in a public document. Sales of land and mortgages are such acts. So an SPA to sell or mortgage land must itself appear in a public document.
Frequently asked questions
What is a special power of attorney?
It is an authority given by a person (the principal) to another (the agent) to do specific acts in the principal's name. Article 1878 lists the acts that need this special power.
Do I need an SPA for someone to sell my land?
Yes. Article 1878(5) requires a special power for any contract that transmits or acquires ownership of an immovable, and Article 1874 says the agent's authority to sell land must be in writing, otherwise the sale is void.
Is a general power to manage my properties enough to sell them?
No. Article 1878 requires a special power for acts like selling or mortgaging land, borrowing money or leasing real property for more than one year. A general authority to manage does not list these acts.
What happens if the agent sells land without written authority?
Article 1874 says the sale is void. In Spouses Alcantara v. Nido (2010), the Court affirmed that a sale of land by an agent with no written authority was void.
Does an SPA need to be notarized?
Article 1358 says a power whose object is an act that appears or should appear in a public document must itself appear in a public document. A sale of land is such an act. The notarial rules themselves are not covered here.
Where is an SPA notarized if I work abroad?
For Filipinos abroad, notarization of documents is a consular service of Philippine embassies and consulates. The appointment process is in the guide to embassy appointments abroad; this page does not cover consular requirements.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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