Special Power of Attorney (SPA): Meaning
Quick answer
A special power of attorney (SPA) is an express authority that lets an agent do a specific act for the person giving it, called the principal, such as selling land, borrowing money or accepting an inheritance. Article 1878 of the Civil Code lists the acts that need a special power. For the sale of land, the authority must be in writing, or the sale is void.
Also called: SPA
What does Article 1878 say?
Article 1878 lists fifteen cases. Some of the most common in daily life:
(5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration;
(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;
Other cases include making payments that are not acts of administration, compromising a case, making gifts, creating or conveying real rights over immovable property such as a mortgage, accepting or repudiating an inheritance, and any other act of strict dominion. See Article 1878 for the full explanation.
Why must an SPA to sell land be in writing?
Article 1874 says that when land, or any interest in it, is sold 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 written authority, and the Supreme Court upheld the ruling that the sale was void. Article 1358 also requires a public document for any power whose object is an act that appears or should appear in a public document.
Is a general power of attorney enough?
Not for acts of strict ownership. In Pahud v. Court of Appeals (2009), the Supreme Court quoted an earlier ruling: "The express mandate required by law to enable an appointee of an agency (couched) in general terms to sell must be one that expressly mentions a sale or that includes a sale as a necessary ingredient of the act mentioned." So a power "to manage my properties" does not let the agent sell or mortgage them.
Example
Made-up illustration: Arnel, an OFW in Dubai, wants his sister to sell his lot in Batangas. He must give her a written special power of attorney that expressly authorizes the sale. Without it, a sale she signs is void. A general authority "to manage my properties" would not let her sell or mortgage the lot, borrow money in his name, or lease it out for more than a year.
For the full list and common situations, see When is a special power of attorney needed?. For signing an SPA abroad, see the embassy appointment guide for OFWs.
Which provisions use this term?
Frequently asked questions
What is a special power of attorney?
It is an authority that a person (the principal) gives to an agent to do specific acts on his or her behalf, beyond ordinary administration. Article 1878 of the Civil Code lists fifteen kinds of acts that need one, such as selling land or borrowing money.
Do I need an SPA to sell land through someone else?
Yes. Article 1878 requires a special power for any contract that transfers 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. As quoted in Pahud v. Court of Appeals (2009), the mandate must expressly mention a sale or include a sale as a necessary ingredient of the act mentioned.
What happens if land is sold without a written authority?
The sale is void under Article 1874. In Spouses Alcantara v. Nido (2010), the Supreme Court upheld a ruling that a sale of land by an agent without written authority was void.
Does an agent need an SPA to borrow money for me?
Yes, as a rule. Article 1878(7) requires a special power to loan or borrow money, unless borrowing is urgent and indispensable to preserve things under the agent's administration.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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