_edited_.png)
SPA Expiry
- Juan Patag
- Oct 24, 2023
- 2 min read
Once upon a time, a broker closed a deal and was tasked to transfer the title to the buyer's name.
The sellers who lived in another country had signed a Special Power of Attorney (SPA) authorizing their relative to sign on their behalf. They executed this instrument several years ago during their last visit to the Philippines.
When the broker submitted the pertinent documents to the government agency, the person in authority (PIA) quickly noticed the SPA's date. The following conversation then transpired...
PIA: "Expired na yung SPA!"
Broker: "Huh? Ma'am, saan po sa batas nakalagay na nag eexpire ang SPA?"
PIA: "Bakit, saan ba sa batas naka lagay na hindi nag eexpire ang SPA?"
End of story.
This is an example of the "unspoken rules" in title transfers.
So, who's correct?
Article 1919 of the New Civil Code, which provides that :
“Agency is extinguished:
1. By its revocation;
2. By the withdrawal of the agent;
3. By the death, civil interdiction, insanity, or insolvency of the principal or the agent;
4. By the dissolution of the firm or corporation which entrusted or accepted the agency;
5. By the accomplishment of the object or purpose of the agency;
6. By the expiration of the period for which the agency was constituted."
Simply put, the SPA in the story should have remained valid (since it didn't have an expiry date).
BUT WAIT...
Read numbers 1 and 3 of article 1919 again.
If you're the buyer, how do you know the SPA has not been revoked? Or, how do you know if the principal is still alive? Wouldn't it be practical to require the SPA to be issued as close to the signing date as possible?
This is likely the story behind why PIAs require the SPA to be issued within 12 months from the date of sale. Frankly speaking, I, too, would require the same thing if I were on the other side of the transaction.
Side note: I hope authorities develop a way people could authenticate notarized documents here. In Singapore, people could verify apostilled documents using a QR code provided. (Business idea?)
