A Power of Attorney is a legal instrument whereby one person, the "principal," authorizes another, the "agent" or "attorney," to act on his or her behalf in specified matters. Although a PoA is a unilateral legal instrument, the attorney relationship is a mutual contract that requires both parties to perform certain duties under the agreement.
When is a Power of Attorney Needed?
A Power of Attorney is sometimes needed when companies or individuals need to be represented in any legal, administrative, or financial affairs in Turkey.
A PoA grants an authorized person the power to act on behalf of the principal, and therefore it is the important tool for anyone who needs to handle matters in Turkey from outside or who needs help because of a location or logistics restraint.
The most frequent situations where a PoA is required are:
Legal Proceedings: To hire a lawyer to represent you in any civil, family, administrative, or criminal law case, including filing lawsuits, conducting pending cases, and representing you before courts.
Company Representation: Empowering someone to act on behalf of your business, be it negotiating contracts, observing a regulatory compliance, or representing the company in court.
Real Estate Transactions: To act on your behalf for buying, selling, leasing, or mortgaging of property for residential or commercial purposes.
Financial Transaction: To facilitate every banking transaction, from deposits to withdrawals or even investment activities, and to effect any financial transaction.
Asset Management: Buying or selling movable assets, for example, vehicles or machinery, and the management of investments in stocks, bonds, or other financial instruments.
Tax and Administrative Matters: To nominate a person who may file tax returns, claim tax refunds, or deal with official correspondence with tax offices or other administrative offices.
Inheritance Matters: To authorize a representative to perform inheritance procedures, claims, distribution of the estate, and all documentation, on behalf of heirs.
Insurance Matters: To litigate or file claims, handle insurance policies, or communicate by official letters with insurance companies.
Education Matters: To represent parents or guardians in education-related matters or deal with admissions, primarily for students studying abroad.
Health Care Powers: To designate someone to make medical or hospital decisions, including giving consent to treatment, obtaining access to medical records, and dealing with health insurance issues.
Other Private Affairs: In order to execute passport renewals, driving licences, and other official documents that may require the presence of a personal representative.
Appointing an attorney under a PoA ensures that personal, corporate, and legal matters will be attended to accurately and efficiently without the time or travel costs. If you would like to prepare or execute a Power of Attorney, CCS Law can assist you in doing so.
How to Use a Power of Attorney Overseas
For residents outside Turkey, PoAs can be conducted in two primary ways:
Through Turkish embassies and consulates
Through notary offices in the resident foreign country
Carrying out a Power of Attorney Through Turkish Consulates
Using a Turkish consulate is usually the easiest way to have a PoA done outside Turkey. Those who need a PoA to be used in Turkey can schedule an appointment via consulate websites and visit any Turkish consulate regardless of regional restrictions.
The principal has to appear personally for the preparation of a PoA and prove the identity of the principal; the names and Turkish ID numbers of the appointed attorney or attorneys should also be provided, if applicable. If the principal is not fluent in Turkish, an interpreter will have to accompany the principal. After the fees payable are paid, the document is delivered to the agent. Fees may differ from year to year and depend on the kind and duration of the PoA.
As of 6 April 2019, PoAs signed at consulates are registered in the Turkish Notary Union database, so the agents in Turkey can get certified copies of the PoA from any notary office.
Executing a Power of Attorney Through Foreign Notaries
Those who cannot come to a Turkish consulate may do a PoA with a foreign notary, provided the person knows which country he/she is in and, thus, which procedure to follow. That depends on whether the country is a party to the Hague Apostille Convention (6 October 1961). For Countries That Are Members of the Hague Apostille Convention: If the country where the PoA is executed is a member of the Hague Apostille Convention, there needs to be an apostille attached with the document.
An apostille, in simple words, is a certificate authenticating the document and hence making it legally valid for use in all other member countries, including Turkey.
An apostille is usually done by local authorities, such as the district governors' offices in Turkey or the Landgericht court in Germany. Once the PoA is apostilled, it can be translated and used in Turkey. For Countries Which Are Not Parties to the Hague Apostille Convention: The certification process would be different if the country where the PoA is executed is not a party to the Hague Apostille Convention.
Confirmation of the authenticity of the PoA by the concerned ministry or governmental body of such a country, usually the foreign ministry, would have to be obtained.
After such authentication by the Ministry, it may, in certain cases, require further legalization by the Turkish consulate or embassy in that country for recognition in Turkey. It would be advisable to check with a local legal advisor in the country where the PoA is being executed to understand the specific requirements for this process.
Preparation of the Power of Attorney Document
It is therefore often advisable that the principal prepare the PoA in advance in either Turkish or the local language and bring it to the notary for execution, since foreign notaries may not be familiar with specific requirements of PoAs under Turkish law. This will ensure that all necessary authorisations and language are included.
All PoAs to be used for real estate dealings in Turkey shall contain the official language of the country in which the notary is situated and in a format as the particular jurisdiction dictates. The PoA must be translated to Turkish once an apostille or other certification is obtained.
Including a Photograph on a Power of Attorney
It is prudent to attach two passport-sized photographs of the Principal for some PoAs, particularly those involving important powers such as divorce, property transactions, sale of vehicles, or banking concerns. This adds another layer of security and tends to verify the identity of the Principal in cases where high-stakes transactions are involved.
Additional Information for Limited PoAs
Principals may sometimes want to limit the scope of a PoA to only certain matters. For example:
Bank account details and bank information should be provided for bank transactions.
For vehicle transactions, identifying details of the vehicle should be provided.
Title deed information must be provided for real estate transactions.
Can someone who cannot read or write sign a PoA?
Yes, an illiterate principal can sign a PoA in front of two literate witnesses, either of which can't be related to the principal by blood or law.
PoAs for Businesses
Even companies can issue PoAs; however they must contain the resolution of the Board of Directors authorising the same and a list of authorised signatories.
Guardianship PoAs
Only if the guardianship decision is duly recognized by a Turkish court, would the guardian be able to give a PoA, as foreign guardianship orders are valid only within the country that issued them. Recognition and enforcement procedures before Turkish courts must be performed.
Is an Agent Liable to the Principal?
The agent, under the Turkish Code of Obligations, is obliged to act in accordance with the instructions of the principal and in protection of the principal's interest; this includes:
Keeping the principal informed of progress and results
To provide receipts and document funds or assets received from the principal or third parties
Restitution or restoration of any property to the principal after the work is done
Taking responsibility for any losses resulting from not carrying out duties correctly
Termination of a Power of Attorney
A PoA may terminate under several conditions:
Lapse of Time Limit: If the PoA specifies an expiration date, it automatically expires on that date.
Performance of Task: A PoA that is for a specific act (e.g. sale of particular property) terminates when the act is performed.
Revocation by the Principal: A principal may revoke a PoA by making an application at any Turkish notary public office or consulate, presenting the PoA document and personal identification.
Resignation by the Agent: The agent may resign from his position; this is particularly prevalent in litigation cases, where the resignation must be formally presented before the court.
Death of Either Party: A Power of Attorney comes to an end upon the death of either the principal, who has the authority to grant it, or the agent, to whom authority is granted. It is lost through their death because their legal capacity is lost. If the PoA is between companies, it will also end if one of the companies is dissolved.
CCS Law is ready to assist you in drafting a Power of Attorney for Turkey that will best suit your needs. Please do not hesitate to contact us for proper guidance in the drafting of your document and its final execution. We want to make sure that your Power of Attorney, when finally drafted, will be effective representation and has fully complied with all the requisites of law, and to serve its purpose of giving you peace of mind.
For further detailed advice and help, please contact us at CCS Law.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.
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