Substitution of power
The substitution of power together with other resources such as sub-authorisation, stand as options within the specialty in notarial services in powers of our Notary Office in Barcelona. Therefore, we want to introduce you to what the substitution of power means, how to process it step by step, and the rest of the related matters such as options for renunciation and revocation.
What is substitution of power?
The substitution of power occurs when an attorney-in-fact who has been granted powers transfers them to a third party, either because they cannot or do not want to exercise them. During this procedure, the principal's authority to act and represent ceases. The person, therefore, who is going to replace the original attorney-in-fact is legally called the substitute and will be the one who, from that moment on, carries out the previous functions of the attorney-in-fact.
There are various reasons why an attorney-in-fact might need to process a substitution of power. These include possible incapacity, the inability to exercise the assumed role, or even the loss of the trust relationship with the principal.
The substitution of power avoids the need to revoke and create a new power of attorney, providing the parties involved with benefits in time and resources. Likewise, it is worth mentioning that the substitution can be processed both in the case of individuals and in commercial companies that require representation.
Let us remember that the granting of powers, which includes the substitution of power, is based on the deep trust between the principal and the substitute, since negligence or fraud can entail economic and patrimonial repercussions for the person granting the power. For this reason, we always recommend including clauses in the notarial document that specify the substitution or sub-power of attorney resources.
The substitution of civil power is regulated by the Civil Code between articles 1709 and 1721; in the Civil Code of Catalonia it is regulated in article 622-26; and in the commercial sphere in articles 261 and 296 of the Commercial Code.
Difference between substitution of power and sub-empowerment
If we compare substitution of power versus sub-power of attorney, substitution causes a transfer of power from the attorney-in-fact to the substitute, in which the attorney-in-fact, as mentioned, loses the powers of action and representation. The difference between substitution and sub-power of attorney lies in that in sub-power of attorney, the attorney-in-fact delegates all or some of the powers to a third party, but unlike substitution, does not detach from the power, but continues to act as attorney-in-fact.
Effects of power substitution
Therefore, processing a power of attorney substitution involves the transfer of power from the attorney-in-fact to the substitute, annulling the attorney-in-fact's status, and granting the substitute the power of representation of the principal. The figure of the substitute may legally represent their principal in commercial transactions, such as signing contracts or sales, during travel or absences, within the scope of commercial companies, due to health problems or incapacity, and even a delegation of specific powers.
Substitution of power for lawsuits or substitution of power from one lawyer to another
In this case, we are talking about the substitution of a person who represents another in lawsuits. Thus, in the case of a lawyer acting as a representative of a principal and who must be replaced, for example, by a member of their firm, they must legally initiate the steps for substitution or delegation of power.
How is a power of attorney substitution made?
For a substitution of civil power to occur, the principal must not have specified in the initial granting of powers that substitution of power is prohibited. Therefore, in the event that the principal cannot or does not wish to exercise their functions, the following scenarios may arise:
- That the power contains a clause allowing substitution: in this case, if a substitute was specified as a particular person, one must act according to the will of the principal under their responsibility. If no person was specified to substitute, the attorney may designate one by granting a deed of substitution of power, without prejudice to the attorney's responsibility for the acts of the substitute.
- That the power contains a clause where substitution is expressly prohibited: In this case, the power cannot be substituted, unless the principal subsequently ratifies it, since otherwise it would lack validity, or the principal grants a new power in favour of another person.
- That the possibility of substitution of power was neither specified nor prohibited: If the power says nothing about the possibility of substituting the power, a distinction must be made between the power granted under the common law code or Catalan law:
- Common civil code: In this case, the power may be substituted in favour of another person, without prejudice to the responsibility of the attorney.
- Catalan civil code: Under Catalan law, if the power says nothing, substitution is not allowed. It would be treated as if it had been prohibited.
Substitution in the commercial field
Unlike in the civil sphere, in the commercial sphere, the rule is that substitution is prohibited unless it has been expressly permitted in the commercial power of attorney. Therefore, in the commercial sphere, substitution is not possible unless the power itself allows it.
The power of attorney substitution deed
If you are a proxy and need to carry out a power of attorney substitution deed, you must book an appointment at a Notary's office. Notaries are legal professionals who guarantee the legality and authenticity of transactions. You will be informed of the legal and financial risks and about any conflicts of interest that may arise depending on the context in which the substitution takes place, whether in private individuals or commercial companies.
To carry out what is sometimes known as a power of attorney substitution act, only the proxy's presence at the Notary's office will be necessary. The processing of a power of attorney substitution requires the signing at the notary of a power of attorney substitution deed. The proxy granting the substitution in favour of the substitute will sign, without the substitute needing to sign. After signing, the authorised copy of the power of attorney substitution will be given to the proxy to hand over to the appointed substitute.
Documentation for the deed of substitution of power in Spain
On the day you have arranged, you must provide the following documentation if you are an individual:
- Valid identification document.
- Authentic copy of the power of attorney that allows verification of the grantor's will regarding the possibility of substitution.
In the case of companies or legal entities, documentation proving the existence of the company and the power granted with substitution faculties will be required.
How much does the power of attorney substitution cost?
The price of notarial acts is regulated by the Government and complies with the regulatory legislation of the NOTARIAL FEE SCHEDULE (RD 1426/1989, of 17 November, regulating the Notaries' Fee Schedule).
In general, the exact price of a notarial document cannot be calculated until its specific content is known, that is, until it is signed, as there are many circumstances that can cause it to vary.
In the case of a power of attorney substitution deed, the cost varies depending on whether it concerns a natural person or a legal entity.
The number of copies requested of a document, the number of pages it contains, as well as possible changes or additions, also slightly affect the final price.
If you wish to receive a detailed quote, we invite you to contact us directly through the method that is most convenient for you. You can do so via the contact form on the main page of this website, through the contact section found in the footer of the website, by using the direct WhatsApp access at the bottom right of this page, by sending an email to bcn@jlanotarios.com, or by calling us on 93 159 17 62.
As a guideline, we can inform you that, according to the current regulatory legislation, the usual price in the case of substitution of commercial power of attorney, since more procedures and documentation of companies are required, is between €120 and €250. Meanwhile, the formalisation of a substitution deed of civil power of attorney granted by a natural person ranges between €60 and €90.
Other questions related to the Full Power of Attorney Replacement
It will be the substitute's option to renounce the substitution of power if they wish. They may cease to use the power as such, destroy their authorised copy, or execute a public deed of renunciation of the substitution of power. The public deed is especially useful to avoid problems after the renunciation.
The principal may revoke the substitution of power whenever they wish, rendering the use of the power ineffective. It is common for this to occur prematurely if trust has been broken with their attorney or if they do not agree with the substitute appointed by the original attorney, denying the option to ratify them after the substitution deed. To do so, the substitute must be formally notified of their dismissal from the position.
The duration of the substitution will depend on the duration that was established in the initial power of attorney delivery.
In the event that several attorneys-in-fact have been appointed, they may appoint their relevant substitutes provided that this has been contemplated.
JLA Notaries, notary for power of attorney substitution
At JLA Notarios we specialise in the preparation of the power of attorney substitution deed. In our Notary Office in Barcelona you will find a team of highly qualified and experienced Notaries to be able to grant power of attorney in Barcelona. We are experts in the applicable regulations and can offer you personalised advice tailored to your specific needs, always answering your questions and concerns.
At JLA Notarios we work empathetically and dynamically, applying new technologies in all procedures for your comfort and convenience. Our goal is to optimise the transaction times of your procedure and keep you informed of any developments that arise during the process. In addition, you can now also sign a power of attorney substitution online from anywhere in Spain, in the fastest and most convenient way via videoconference with our online notary.
Choose us as your Notary to receive excellent service quality. Get in touch with us for an initial consultation at our offices or grant powers of attorney online through digital signature. We will assist you throughout the entire process, resolving your doubts and managing your procedure efficiently. Book your first consultation now at JLA Notarios.
By your side in the moments that matter
Inheritance and wills
The moment of granting a will, making a declaration of heirs or formalising an inheritance are very important moments in people's lives.
At JLA Notarios we offer services related to succession law, both to arrange your succession and to distribute an inheritance, guaranteeing the best advice tailored to your particular needs and the study of the tax implications of each case. At no time do we neglect the human factor, even offering home notary services if necessary.
Contracts and property law
Over the course of our lives, we carry out important actions, such as buying a home, declaring a new-build, lifetime gifting to our children or ending partnerships, among many others.
At JLA Notarios we are experts in property and contract law and buying and selling property. We guide our clients, analysing each particular issue and always considering the tax burden of each transaction.
In addition, some of our notarial services can be performed online, so we can assist you from anywhere in Spain. Contact us to declare a new-build or a commonhold ownership structure online.
Mortgage
Taking out a mortgage is one of the biggest moments for anyone. Just think of the fees and interest you may have to pay for much of your life. So it is essential to have a trusted notary to help you understand what you are signing, explaining the tricky legal terms and their future consequences in simple words, to provide transparency and protect our clients.
At JLA Notarios we are aware of the importance of giving complete and understandable information to people about to sign a mortgage, novation or subrogation. We also advise and guide you on your future mortgage cancellation.
Loan agreements and credit facilities
Individuals and companies often need money to fulfil their dreams or projects. This can be obtained by taking out a loan or credit facility with your bank. When you sign, it is essential to understand the details properly to avoid future surprises.
JLA Notarios can be your trusted notary office, giving you accurate advice on loan contracts, providing a very agile and specialised service for processing loan contracts.
Bear in mind that from 9 November 2023, you will be able to sign your loan contracts from anywhere in Spain electronically by videoconference with JLA Notarios, saving you time and money. Do not hesitate to contact us to find out more about the notary office’s services in order to sign a loan contract online or sign a credit facility online.
Companies
Without entrepreneurship there is no future, so it is of vital importance to support our businesspeople and entrepreneurs.
At JLA Notaries we are familiar with companies’ life cycle, which enables us to provide legal assistance for companies in their different stages, whether incorporation, modifications of their articles of association, changes of director, share sales and purchases, capital increases and reductions, dissolution and closure, and everything related to commercial matters.
Powers of attorney
There are moments in life when a person needs to delegate. The law provides a tool for this: powers of attorney. Though a power of attorney, one person allows another person to act on their behalf.
At JLA Notarios we make sure that you understand the significance and risks of delegating or revoking powers of attorney, from a special power of attorney or power of attorney for lawsuits, to general powers of attorney or preventive powers of attorney for cases of incapacity.
We provide an agile service to sign powers of attorney. You can take your copy away immediately, saving you unnecessary trips, and from 9 November 2023 our clients will be able to sign all powers of attorney that are not general or preventive by videoconference through our digital notary office.
Family affairs
A prosperous society is based on the family and its protection. Family Law provides you with the tools to protect your family and its members, so its foundations are solid and its purposes can be achieved.
At JLA Notarios we provide legal advice on marriage or civil partnerships; property aspects of the family through marriage contracts or civil partnership contracts; the moments when the family relationship is ended, in cases such as divorce or separation; and protection of vulnerable people, such as minors or people with modified capacity, through deeds of appointment of guardians or executors or creation of protected assets. We do all of this in a way that makes everyone involved feel equally supported and secure.
Certifications and authentications
It is common knowledge that notaries attest. That important and simple action can guarantee things of vital importance, such as ensuring that the signature on a document is authentic or certifying that a copy of a document matches the original.
At JLA Notarios we will help you to certify a document or notarise a signature in accordance with the law and tailored to your specific needs.
In addition, these notarial procedures can be carried out conveniently through electronic means from 9 November 2023.
Minutes
How many times have you wanted to leave a record of an event, of a statement, of the condition in which an object is found, or notify someone of any matter. To provide a solution to these issues, the Law provides us with notarial records.
At JLA Notarios we adapt to you, reflecting in the record what you require and carrying out the notifications and requests that you demand.
Oath of Nationality
Behind every nationality oath there is a story of overcoming, sacrifice and waiting.
At JLA Notarios we understand what this moment means and offer an empathetic, agile and quick service, advising beyond the oath itself, anticipating the future requirements that the new Spanish citizen will need.
We are your reference Notary to carry out the nationality oath before a Notary in Barcelona.
Apostille of the hague convention
Globalisation enables the free movement of people and documents of all kinds. How can you guarantee that a document has been officially issued? With an apostille of the Hague Convention.
JLA Notarios can obtain an apostille for all documents executed before us so they are valid and recognised abroad. We do this transparently and save you all the bureaucratic procedures involved.
Tax and registry procedures
Tax bureaucracy can cause a lot of headaches.
So JLA Notarios offers its clients the possibility of assessing and paying the many different taxes by the executing deeds and carrying out other procedures before the notary. We can also file them with the Land or Companies Registry so you do not have to concern yourself with it and can spend your time on the things that matter. We support you from start to finish.