Power of Attorney

Unless it derives otherwise from the law or an agreement, transactions may be made via a representative. A Power of Attorney is given by making a respective declaration of intent to the representative, the person who is being authorized to make the transaction, or the public. This document helps you draw up the respective declaration of intent. The Avokaado Power of Attorney can be used if:

  • the transaction may be made via a representative
  • the power of attorney does not have to be in notarized format
  • the power of attorney is drawn up for a representative, a third person or the public

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Frequently asked questions

When may a transaction be done via a representative?

A transaction may be made via a representative, unless the law or an agreement stipulates that the transaction must be made personally.

The person issuing the power of attorney decides the essence of the authorisation given. The authorisation is interpreted in the way in which the issuer’s declaration of intent or behaviour should have been understood by the person to whom the authorisation was given or who is relying on a declaration of intent aimed at the public or on the issuer’s declaration or behaviour.

An authorisation may also be given to a person with restricted active legal capacity.

When should a notary be used for issuing a power of attorney?

A notary must be used for issuing a power of attorney upon the division, transfer, assignment or other disposal of registered immovable property (including an apartment ownership), as the said transactions have to be in notarised format by law. A notary must also be used upon issuing an authorisation for a representative to participate in succession proceedings, found a company, transfer a share of a private limited company not registered in the Estonian Central Register of Securities, use the bank account of the represented person, receive the pension payable to the represented person, and various other transactions.

Can an authorisation be given to several persons at once?

An authorisation of the same content may be issued to several persons at once. In such case, it is presumed that each of them can independently represent the authorising person. However, it may be stipulated in the power of attorney that the representatives may only jointly represent the authorising person. Nevertheless, each of them may still independently accept declarations of intent on behalf of the person they represent.

Can an authorisation be withdrawn and when?

The issuer of an authorisation can withdraw the authorisation at any time, even if the authorisation has been given for a pre-defined term. An authorisation is withdrawn by making a declaration of intent to the representative or the person to whom the authorisation was granted for making the transaction, or to the public.

Upon granting an authorisation for the performance of a transaction in the interest of the representative or a third person, the person granting the authorisation may specify that the authorisation is irrevocable. The represented person has the right to withdraw an irrevocable authorisation for a good reason.

When does an authorisation expire?

An authorisation expires when:

  • the representative has performed the transaction for which the authorisation was given
  • the performance of the transaction for which the authorisation was given has become impossible
  • the term of the authorisation expires
  • a resolutive condition linked to the expiry of the authorisation arrives
  • the issuer of the authorisation withdraws it
  • the representative resigns from the authorisation
  • that derives from the transaction underlying the authorisation
  • the contract underlying the authorisation expires
  • the represented person dies
  • the represented or representing legal person ceases to exist
  • the represented person is declared bankrupt
  • other grounds for expiry arise as established by law

Representation is also presumed to end when the representative is declared bankrupt, dies or is placed under guardianship.

If a power of attorney has been issued concerning the authorisation, the power of attorney has to be returned to the represented person after the expiry of the authorisation.

If an authorisation has been given to a third person or the public by a declaration of intent or if the represented person has notified a third person or the public, the authorisation is considered valid towards the third person or the public until the authorisation is withdrawn in the same manner or notification is given of its termination. This means that if the represented person has notified a third person of an authorisation and thereafter withdraws the authorisation or the authorisation ends, it will remain valid towards the third person until the represented person notifies him or her. This also applies to restricting an authorisation. However, if the represented person has not notified the third person of the termination or withdrawal of the authorisation, but the third person is nevertheless aware of it, the authorisation is considered ended for him or her.

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