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Power of Attorney for the Sale of a Property: What It Is and How It Works
Selling a property is a complex process that requires the owner’s presence and signature at different stages, from granting the mandate to the final notarial deed. But what happens if the seller cannot personally handle the transaction? In these cases, the power of attorney for the sale of a property comes into play, a legal tool that allows someone else to manage the sale. In this guide, we analyze when it is needed, how it works, the different types, the advantages, and the precautions to take.
Table of Content
What is a Power of Attorney for the Sale of a Property?
Why a Power of Attorney May Be Needed
How a Power of Attorney Works
Documents Required for a Power of Attorney
Advantages of a Power of Attorney in Real Estate Sales
Possible Risks and How to Prevent Them
Why Choose Engel & Völkers
What is a Power of Attorney for the Sale of a Property?
A power of attorney is a legal act by which one person (the principal) grants another person (the attorney-in-fact) the authority to act on their behalf to carry out certain legal acts. In real estate sales, the power of attorney allows the attorney-in-fact to sign documents and deeds as if they were the owner.
General Power of Attorney vs. Special Power of Attorney
General Power of Attorney It grants very broad powers to the attorney-in-fact, who can manage multiple assets and perform various financial operations (sales, purchases, administration). It is mainly used in the overall management of assets or when the principal cannot take care of several matters for an extended period. However, it involves greater risks, since it grants wide-ranging and less controllable authority.
Special Power of Attorney It refers to a single transaction or property. This is the most common form in real estate sales, as it clearly limits the powers granted, reduces risks, and better protects the principal’s interests. It can also include specific conditions, such as a minimum selling price or a validity limited to the time necessary to conclude the transaction.
| Characteristic | General Power of Attorney | Special Power of Attorney |
|---|---|---|
Scope of application | Broad: multiple financial acts, not limited to sales | Limited to a single transaction or property |
Duration | Valid until revoked | Linked to the conclusion of the specific deal |
Risks | Higher: extensive powers are harder to control | Lower: powers are clearly defined |
Typical use | Overall management of assets or business | Sale of a specific property |
Protection for the principal | Weaker, requires great trust in the attorney | Stronger, since powers are clearly limited |
Why a Power of Attorney May Be Needed
A power of attorney for the sale of a property is useful whenever the owner cannot personally handle the sales process. Typical cases include:
Residents abroad who want to sell property in Italy.
Owners unable to manage the sale due to health or professional commitments.
Co-ownership situations, where appointing a single representative simplifies management.
The advantages are clear: the seller can complete the transaction without traveling or facing logistical issues, while maintaining full legal protection.
How a Power of Attorney Works
The power of attorney must be drawn up in writing and notarized. The notary ensures the validity of the document and verifies compliance with legal requirements.
Who can issue it: the property owner or all co-owners in the case of jointly owned assets.
How it is granted: by a notarial deed specifying the seller’s details, the attorney-in-fact’s details, and the property involved.
Practical Example An Italian citizen living in London wants to sell an apartment in Milan. Since traveling frequently is not possible, he grants a special power of attorney to his brother, who lives in Italy. The deed, drawn up by a notary, authorizes the brother to sign the preliminary contract and the final deed, but also sets a minimum selling price below which the property cannot be sold. This way, the seller remains protected while the transaction can proceed without his physical presence.
Documents Required for a Power of Attorney
To draw up a power of attorney for a sale, the following are needed:
Seller’s ID and tax code.
Cadastral and identifying data of the property (sheet, parcel, sub-unit – see here the difference between mappale and particella).
Details of the deed of ownership.
The notary will include this information in the deed, ensuring clarity and legal validity.
Advantages of a Power of Attorney in Real Estate Sales
A properly drafted power of attorney offers several advantages beyond simple delegation:
Operational flexibility – Allows the sale to proceed even without the seller’s presence, ideal for those living far away.
Time savings – Reduces the need for travel and multiple appearances.
Legal protection – Notarial drafting ensures validity, transparency, and compliance with the law.
Customization – Specific clauses (e.g., minimum price, power limitations) can be included.
Simplified negotiations – In co-ownership, appointing one representative speeds up the process.
Possible Risks and How to Prevent Them
The main risks involve misuse of the power of attorney or a document drafted too broadly, which could give excessive powers to the attorney-in-fact. To prevent this, it is essential to:
Draft the power of attorney with a notary’s assistance.
Clearly specify limits and conditions.
Rely on professionals to oversee the transaction at every stage.
Why Choose Engel & Völkers
A power of attorney is a useful but delicate instrument, requiring legal and notarial expertise. Engel & Völkers guarantees:
Qualified advice: legal and notarial support for clear, secure deeds.
Complete assistance, even remotely: ideal for sellers living abroad or far away.
Transparency and security: every stage of the sale is handled professionally, minimizing risks and uncertainties.
FAQs on Power of Attorney for Property Sales
The cost depends on the notary and the complexity, but it generally ranges from €100 to €300.
It lasts until the completion of the specific transaction, unless revoked earlier.
Yes, the principal can revoke it at any time by notifying the attorney-in-fact and the notary.
Only if expressly stated in the document. It is possible to limit the powers to signing deeds only.
For a single real estate transaction, a special power of attorney is preferable, as it reduces risks and limits the attorney’s powers.