Power of Attorney is a legal authorization granted through a transaction, which allows a representative to perform the transaction on behalf of the principal. A Power of Attorney document is the written document that grants this authorization.

If the representative has been given the authority to make a transaction and performs the transaction on behalf of the principal, the transaction made based on the power of attorney is considered valid and binding on the principal as if they had carried out the transaction themselves.

In what form should a power of attorney be granted?

In principle, a power of attorney can be granted in any form (oral, written, in a form that allows reproduction, electronic, notarized, or notarially certified). However, if the law specifies a particular form for a transaction, the power of attorney must be granted in that same form. For example, a power of attorney for the sale of movable property can be given orally. If the representative is to act in court on behalf of the principal, the power of attorney must be at least in writing. However, if the principal wants to grant a power of attorney for the sale of real estate, the power of attorney must be notarized.

What is the content and scope of the power of attorney?

The content and scope of the power of attorney are determined by the principal at the time of granting the power. In the case of a general power of attorney, it is assumed to cover all actions of the principal. Typically, this relates only to property matters. Personal matters are included in a general power of attorney only if explicitly stated in the power of attorney. The representative may be allowed to make transactions at their discretion, but if necessary, the principal can limit the representative’s authority by setting conditions (such as deadlines, price, or other terms for the transaction).

When does the power of attorney end?

The power of attorney ends when the representative has completed the transaction for which it was granted, or if completing the desired transaction becomes impossible. If the power of attorney was given for a fixed period, it ends when that period expires. The power of attorney also ends if the legal entity acting as the principal or representative ceases to exist, if the principal dies, or if the principal’s bankruptcy is declared. The power of attorney also ends upon revocation by the principal. The principal can revoke the power of attorney at any time, even if it is for a fixed term. Revocation is done by making a declaration to the representative or a third party with whom the power of attorney was granted, or publicly.

After the power of attorney ends, the representative must return the power of attorney document to the principal.

If a power of attorney has been granted in the form of a document, it is considered valid until the document is returned to the principal or declared void. The validity of notarized powers of attorney can be checked in the publication Ametlikud Teadaanded (Official Announcements).