Power of Attorney POA

What is a Power of Attorney?

A power of attorney is a legal document in which a person, called the "Principal" or "Grantor", formally declares that they wish to authorize another person, called the "Attorney-in-fact or Agent", to act on their behalf in specified matters. Actions performed by the agent within the scope of this authorization will have the same legal effect as if performed by the principal themselves.

A power of attorney is considered a unilateral juristic act (although the agents acceptance is required for it to take effect in practice) and must comply with the provisions of the Civil and Commercial Code, Sections 797-810.

Essential Elements of a Power of Attorney

1. Principals Information

The principals full name must be stated. It may be written in both Thai and English (if applicable), along with their ID card number or passport number, current address, and contact details such as telephone number. All information must match the supporting documents.

2.Attorney-in-facts Information

State the attorney-in-facts full name, ID card or passport number, address, and contact details. If the attorney-in-fact is a foreigner, their passport number, travel document number, and nationality should also be included.

3.Purpose and Scope of the Power of Attorney

Clearly specify the matters authorized, such as purchasing land, submitting documents to a government office, receiving money, or conducting bank transactions. The description should be broad enough yet include any necessary limitations or conditions, e.g., valid for a specific period or for certain agencies only.

4.Date and Place of Execution

The date must be clearly stated. For some agencies, such as the Land Department, the power of attorney must be issued no more than 30 days before submission. The place of execution should also be indicated, such as province and country.

5.Principals Signature

The principal must sign consistently with their ID card signature. In some cases, signing in front of a designated officer is required, and the officer may have to countersign.

6.Attorney-in-facts Signature

Not always required, but some agencies require the attorney-in-fact to sign to confirm acceptance of the authorization, especially the Land Departments form. The signature must be in ink.

7. Witnesses

Some cases require one or two witnesses, with their full names, ID card numbers, and signatures, to confirm the power of attorney was executed voluntarily.

8.Notarization or Legalization

If signed abroad, notarization by a Notarial Services Attorney may be required. In some countries, notarization by a Notary Public and legalization by the Thai embassy or consulate is also needed for use in Thailand.

9.Supporting Documents

Copies of the ID card or passport of both the principal and attorney-in-fact, signed for certification, plus any relevant documents required by the concerned agency.

10.Stamp Duty

Some types of power of attorney require stamp duty, e.g., 10 baht for certain transactions or as prescribed in official forms (such as Tor Dor 21 of the Land Department).

Types of Power of Attorney

1. General Power of Attorney (General POA)

A power of attorney granting the attorney-in-fact broad authority to act on behalf of the principal in multiple matters or a wide range of issues, without limitation to a specific subject.

Examples:

• Authorizing the management of all assets.
• Authorizing all types of financial transactions.
• Authorizing to act on all company-related matters.

Advantages: Convenient for granting authority without creating multiple documents.

Disadvantages: Risk of misuse due to the broad scope. In Thailand, General POA is generally not accepted by government agencies or banks, only for internal corporate or personal use.

2. Specific Power of Attorney (Special POA)

A power of attorney specifying the exact matter and scope for a particular purpose only.

ตัวอย่าง:

• Authorizing the sale of specific land.
• Authorizing submission of specific documents.
• Authorizing company registration changes.

Advantages: Safer due to limited scope, reducing risk of misuse.

Disadvantages: Must create new documents for each matter.

Note: This is the most common type used in Thailand, widely accepted by agencies such as the Land Department and the Department of Business Development.

3. Special / Limited Power of Attorney

Similar to a Specific POA but with additional limitations, such as a specific validity period, a maximum financial limit, or authorization for one particular agency only.

Examples:

• Authorizing property sale within 60 days.
• Authorizing financial transactions not exceeding 500,000 THB.
• Authorizing document submission to a specific government office.

Advantages: Adds extra control and limits, further reducing misuse risks.

Disadvantages: Very narrow scope, must be recreated when terms expire or limits are reached.

4.Durable Power of Attorney (DPOA)

A power of attorney that remains effective even if the principal becomes unable to make decisions, such as in cases of serious illness, coma, or disability.

Examples:

• Authorizing the attorney-in-fact to manage assets and bank accounts while the principal is ill.
• Authorizing the attorney-in-fact to make healthcare decisions.

Advantages: Provides protection in situations where the principal cannot communicate or manage affairs personally.

Disadvantages: Requires strict oversight and is not yet widely recognized in Thailand or by Western embassies.

Note: If an expiration date is stated, it cannot be used beyond that date; a new one must be issued.

5. Overseas Power of Attorney (Overseas POA)

A power of attorney executed abroad for use in Thailand or executed in Thailand for use abroad. Must undergo notarization and legalization/apostille procedures.

Examples:

• Foreigners granting POA abroad to appoint a lawyer in Thailand.
• Thais abroad granting POA to sell land in Thailand.

Advantages: Allows transactions without the need for the principals physical presence.

Disadvantages: Involves more steps and higher processing fees.

Importance of a Power of Attorney

1. Confirms Rights and Legal Validity

A power of attorney serves as evidence that the attorney-in-fact is authorized to act on behalf of the principal, providing protection against disputes or future legal challenges. For example, if the attorney-in-fact sells the principals land with a valid POA, the sale will have legal effect.

2.Acts as a Tool for Performing Official Duties When Unable to Act Personally

Useful when the principal is abroad, engaged in business, or otherwise unable to handle matters in person.

3.Reduces the Risk of Unauthorized Actions

If the attorney-in-fact has the necessary documents, they can act legally. The POA helps ensure actions are lawfully executed.

4.Required by Government Agencies and Institutions

Agencies such as the Land Department, Department of Business Development, and banks require a POA before allowing an attorney-in-fact to act on the principals behalf.

Benefits of a Power of Attorney

1. Convenience

Eliminates the need to travel and handle matters personally in all cases, especially when residing in another province, abroad, or having health limitations.

2.Saves Time and Costs

Reduces travel expenses and the time needed to take leave from work or business to handle matters in person.

3.Allows Action in Urgent Situations

For example, if the principal cannot go to the bank, they can authorize someone to act immediately.

4.Enhances Business and Asset Management

Business owners can authorize partners or employees to perform transactions when they are absent.

5.Prevents Losses from Procedural Delays

When urgent action is required, the attorney-in-fact can act without waiting for agency approval, reducing the risk of restarting procedures.

6.Valid for Overseas Use

If properly notarized/legalized, the POA can be used abroad, such as for selling property in Thailand while the principal is overseas.

Benefits of a Power of Attorney

In the case of foreigners needing to make a Power of Attorney (POA) in Thailand, there are additional steps and special considerations compared to Thai nationals because it involves identification, language, and document certification to ensure acceptance in Thailand.

1. Common Situations

• A foreigner lives in Thailand but cannot handle matters personally (e.g., selling a condo, renewing a visa, dealing with banks).
• A foreigner lives abroad but wants to manage assets or affairs in Thailand.
• The foreigner must appoint a representative to liaise with government agencies or handle official documents.

2. Key Requirements

1. Language of the Document (Thai or Bilingual Thai-English)

• If in a foreign language for use in Thailand, it must be translated into Thai and certified to be accepted by Thai agencies such as the Land Department, banks, or the Department of Business Development.

2. Identification of the Principal

• Use a valid passport as the main ID.
• Clearly state nationality and current address to match supporting documents.

3. Signature Verification

If signed in Thailand:

• Must sign in front of a licensed Notarial Services Attorney in Thailand for signature verification.

If signed abroad:

• Must sign before a Notary Public in that country, followed by legalization or apostille before sending to Thailand for use, or sign at the Thai embassy/consulate in that country.

4. Supporting Documents

• Copies of the passport and visa (if applicable).
• Copies of other relevant documents such as title deeds, contracts, or company registration papers.

5. Stamp Duty

• Must affix stamp duty according to law, such as 10 THB, unless exempt under specific conditions (e.g., Tor Dor 21 form).

3. Important Considerations for Foreigners

• Use a Specific POA to clearly define the authorized matter to avoid misuse.
• Select a reliable representative to prevent damage or legal disputes.
• Set an expiration date for the POA to prevent indefinite authority.
• If the principals signature changes, the POA may not be accepted without reissuance.