Regarding Real Estate: Use Power of Attorney or Authorization Contract?

Dear Legal Secretary,I have the following issue related to the authorization of tasks and transactions concerning real estate and would like to seek advice from the Legal Secretary.Sincerely,

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Recently, my mother wrote an authorization letter for me with the following content: “I hereby authorize my son to have full decision-making authority to sign all forms, documents, etc. related to land, housing, and to make petitions, complaints, and directly work with the relevant authorities as prescribed by law.” The document bears my mother’s signature and the attestation of the Chairman of the Ward People's Committee. However, when I worked with the concerned authorities, they said this authorization letter was not appropriate. Can Thu Ky Luat let me know why?

Answer:

According to the information you provided, Thu Ky Luat finds that the authorization document only bears the signature of the authorizer (your mother) and has the attestation of the Chairman of the Ward People's Committee, proving that the People's Committee has authenticated your mother’s signature. However, according to current regulations, authorization contents related to real estate will not fall under the cases where signature authentication is applicable. Specifically, according to point (d) clause 4 Article 24 of Decree 23/2015/ND-CP, the procedure for signature authentication in an authorization letter only applies in cases where the authorization is without remuneration, without compensation obligations from the authorized party, and unrelated to the transfer of asset ownership rights or real estate usage rights.

Article 24. Procedure for signature authentication

4. The procedure for signature authentication stipulated in Clauses 1, 2, and 3 of this Article also applies to the following cases:

d) Signature authentication in an Authorization Letter for cases where the authorization is without remuneration, without compensation obligations from the authorized party, and unrelated to the transfer of asset ownership rights or real estate usage rights.

Specifically, Article 14 of Circular 01/2020/TT-BTP also stipulates that authorizations meeting all conditions such as without remuneration, without compensation obligations from the authorized party, and unrelated to the transfer of asset ownership rights or real estate usage rights shall be carried out in the form of signature authentication on the authorization letter. Specifically, only the following four cases can have their signatures authenticated:

- Authorization for submitting, receiving applications, documents on behalf, except in cases where the law prohibits authorization;- Authorization for receiving pensions, parcels, allowances, supplements;- Authorization for house caretaking;- Authorization from family members to borrow funds from the Social Policy Bank.

For authorizations not falling into the above situations, signature authentication on the authorization letter cannot be requested; the requester must follow the procedures for contract and transaction authentication as prescribed.

Thus, your mother's authorization for you to handle tasks such as signing forms, documents, making petitions, and complaints related to land and housing owned by your mother is not eligible for signature authentication on the authorization letter. You and your mother must draw up an authorization contract in accordance with legal requirements.

Hai Thanh

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