Ordinary Power of Attorney (England & Wales)

What is an ordinary power of attorney?

An ordinary power of attorney (also known as a general power of attorney) is a legal document under which one person, known as a donor, grants another person, known as an attorney, the authority to act on their behalf in relation to property, financial affairs, or specific legal transactions.

This document can be used to appoint a representative to manage various affairs on your behalf, including property management, dealing with banks and financial institutions, entering sale-purchase transactions, etc. The document can be of two different types:

• a general power of attorney, when the donor grants all authorities to the appointed attorney; or
• a special power of attorney, when the donor grants only specific or limited powers.

Creating a power of attorney template in England and Wales does not require any further registration and can be used by any individual who is 18 years old and older.

This general power of attorney template was created in accordance with the main requirements of the Power of Attorney Act 1971 and is suitable for application across England and Wales.

What is the difference between an ordinary power of attorney and a lasting power of attorney?

The ordinary power of attorney can often be confused with a lasting power of attorney. Some may think that a lasting power of attorney is being issued for an indefinite period of time. However, this is not so. The distinction between those two types of document is enormous:

Registration

The lasting or enduring power of attorney template requires further registration with the Office of Public Guardian. While this is not the case for an ordinary power of attorney.

Costs involved

Signing and execution of an ordinary power of attorney is totally free. For a lasting power of attorney, you are required to pay an additional registration fee.

Duration

The general power of attorney can be used for an indefinite period of time, until a specific date or until the occurrence of specific circumstances in the future. A lasting power of attorney is being used for long-term planning in case of a future incapacity.

Scope

The ordinary power of attorney is being used for a temporary representation in a short-term transaction. On the other hand, a lasting power of attorney is being used and becomes effective once the donor is physically or mentally incapacitated.

What can an attorney do under an ordinary power of attorney?

This document template can be used for a variety of situations, including:

• Managing and operating bank accounts;
• Making payments, transferring funds, and managing investments;
• Buying, selling, or leasing property on the donor’s behalf;
• Signing contracts and legal documents;
• Dealing with HM Revenue & Customs and managing tax affairs;
• Running a business in the donor’s absence;
• Dealing with tenants, landlords, or managing agents;
• Handling correspondence with financial institutions.

It is important to remember that a power of attorney cannot designate a representative in case of the donor’s death. If you are willing to make any arrangements in relation to managing your property after your death, your last will and testament should be used instead.

How to sign this power of attorney?

Both a general and a special power of attorney template should be executed as a deed to be valid. It means that signing the power of attorney is not enough. Under Section 1 of the Law of Property (Miscellaneous Provisions) Act 1989, for a deed to be validly executed by an individual in England and Wales, the following requirements must all be met:

Clear Indication

The text of the document shall clearly outline that it is a deed. The wording of the document shall contain the following: “executed as a deed” or “signed as a deed”.

Physical Presence

The donor must sign the document in the physical presence of a witness. The remote or video call is sufficient for witnessing only in exceptional circumstances. In general, the Law Commission’s report in the UK has confirmed on numerous occasions that witnesses must be physically present at the moment of signing.

Witness Signature

The witness must put their signature, full name, address and occupation in the text of a document. It is not enough for a witness to be just present at the moment of signing.

Independence of Witness

The witness must be independent and not biased by the donor and/or outcome of the transaction. He or she shall not benefit from the outcome of the transaction. There is not a specific requirement for a witness to hold a special degree, be a solicitor or hold any other professional qualification.

When should you use this power of attorney form template?

An ordinary power of attorney template can be used for various daily life situations, including:

• to appoint someone to manage your financial affairs, including liaising with banking or financial institutions while you are travelling or working;
• to handle property transactions remotely, including the sale-purchase of a house or apartment and land plots;
• to manage commercial and business transactions, including acquisition or transfer of shares or stocks;
• to run the business by appointing a trusted director or employee to manage affairs remotely;
• to represent in front of governmental authorities, including HMRS;
• to appoint someone to manage other financial or administrative tasks.

When should you NOT use this template?

Whether you are creating a general or a special power of attorney, using this document may not be possible in either of the following circumstances below:

• the donor lacks mental capacity on the date of signing this power of attorney;
• the donor wants to appoint a representative for a situation when the donor loses their mental or physical incapacity;
• the donor wants to appoint someone to manage their welfare in case of a physical or mental incapacity.

This document shall also not be used when you reside in Scotland or Northern Ireland and want to create a special or general power of attorney. In such a case jurisdiction-specific templates should be used instead.

Top 5 Legal Considerations Before Signing an Ordinary Power of Attorney

Mental capacity of the donor

To become a valid document, a general power of attorney template should be signed by the donor with a full mental capacity. If there is any doubt about the donor’s capacity at the time of signing, the document may be legally invalid and unenforceable.

It is important to note, however, that if the donor loses in full or partially their mental capacity after signing the document, that shall not affect the validity of the power of attorney.

Choose your attorney carefully

An attorney under an ordinary power of attorney is in a position of significant trust and legal authority. Therefore, it is important to appoint someone you can trust. An attorney can be a professional entity, a business, a company, a partnership, a trust or your ex-schoolmate. The laws in the UK do not define the exact list of people who can or cannot act as attorneys.

Before making an appointment, ask the attorney first if he or she would agree to act as attorney. Sometimes they may not accept such a nomination, while others may request additional remuneration for doing the same.

If you plan to appoint several attorneys, make sure they are willing and capable of communicating with each other by achieving the goals set out in the power of attorney.

Select the type of power of attorney

The text of a document should always explicitly state if this is a general or specific power of attorney template. The best way to do that is to state the required information as the title at the beginning of the document. Failure to define the type of power of attorney may have negative legal consequences in case of a court dispute. Courts across England and Wales tend to narrowly interpret the text of a power of attorney, which means that if specific authority is not stated in the document and the document’s type is unclear, the attorney should not have such authority.

Communicate the revocation clearly

If you are not satisfied with the attorney’s work or simply want to replace the attorney, then you have to proceed with the power of attorney’s revocation. This is an important process in which you must clearly communicate to all appointed attorneys that the power of attorney is being terminated. It is also a good practice to send a copy of such a notice to all third parties with whom the appointed attorney may potentially interact.

A revocation should be done in writing by sending a simple written notice to the appointed attorney to their registered mailing or business address. The revocation can take place immediately or upon occurrence of a defined date.

Check the authority of a corporate attorney

In case a corporate attorney, such as one for a company or partnership, is being appointed under a power of attorney template, their corporate powers should be checked first. It is important to make sure that the company’s or partnership’s internal business documents do not prevent them from acting in a certain way or performing certain actions.

3 Common Mistakes to Avoid

Not having the document witnessed correctly

To create a legal power of attorney template, make sure the document is being witnessed correctly. Failure to ensure that important requirements makes the final document legally invalid. That means that any action performed by an attorney under invalid power of attorney can be restituted or recovered back in time. The correct requirements for witnessing shall include:

• A witness should be physically present when the donor puts their signature on a document (including a Zoom meeting or other online means of communication);
• A witness should not benefit from the outcome of this document (for example, a witness shall receive a donation from the donor; in such a case, witnessing is not permissible by such a person);
• A witness should be mentally sound; and
• A witness should be at least 18 years old.

Assuming the power will continue if the donor becomes unwell

Many people create an ordinary general power of attorney template precisely because they are concerned about health. They are convinced that should something happen with their physical or mental health, the present power of attorney shall survive. However, an ordinary power of attorney works the other way round. It automatically terminates should the donor become mentally or physically incapacitated.

Therefore, if you do have any such concerns regarding your health, you should use a lasting power of attorney instead. This is a special power of attorney template that is being used specifically for a situation when the donor cannot make decisions on their behalf due to their health condition.

Avoid granting a general power

Granting a general power of attorney is a significant act. It gives the attorney enormous authority over the donor’s entire financial and property affairs, which in most of the cases may not be necessary. If you are a donor, first picture which exact actions you want your attorney to perform on your behalf. Open a bank account? Sell a property? Acquire shares in the business? If you can name all of them, it is better to stick to a specific power of attorney form template instead of a general one.

A specific power of attorney sets up authority limits for an attorney. In simple words, they cannot do what has not been explicitly authorised in the text of a power of attorney.

Why use FasterDraft for your ordinary power of attorney?

By customising this template with FasterDraft, you get the document with the following benefits:

• a document that is suitable specifically for England and Wales;
• a template that aligns with the Powers of Attorney Act 1971;
• a document that can be adapted for both general and specific power of attorney templates;
• a document with a professional structure and written in plain English;
• a document that is fully customisable for your particular needs;
• a template that is suitable for submission to Land Registry, HM Revenue & Customs, banking and financial institutions across the UK.

How to use this template?

To get a fully customisable document template with FasterDraft, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – a Word or PDF power of attorney template.
4. E-sign the document online.
5. Make a payment.

The document is ready for instant digital download after the purchase. Once the document is downloaded, you can instantly use it.