Special powers for real estate transactions and their implications.

[vc_row][vc_column][vc_custom_heading text="Special powers for real estate transactions and their implications."][us_separator size="small"][vc_column_text]As of this January, the Real Estate Registry has a new version of its Qualification Guide. Among the various provisions and requirements that have been added to said Guide for its update, one topic that deserves a lot of attention from Notaries Public stands out in particular, since it will change the way of corroborating the suitability of the special powers of legal representatives to act effectively in real estate acts with registry effects. Notarial and registry practice over the years, and thus accepted by the Real Estate Registry itself until January 2021, allowed representatives with special powers granted through firm agreements of Shareholders', quota holders', or associates' Assemblies to act in the exercise of their representation and powers, and for said act to subsequently be registered in the aforementioned Registry. The new version of the Real Estate Registry Qualification Guide, effective as of January 2021, establishes that only special powers granted through direct appearance before a Notary Public by legal representatives with sufficient authority to do so will be accepted, and special powers granted at Assemblies will no longer be accepted. The change in the Real Estate Registry's criteria responds purely to a straightforward reason: that notarizations in which special powers are granted through Assembly agreements are not, by definition, public deeds and, therefore, do not comply with the legal requirement established by our Civil Code. This has repercussions on practice. Although the interpretation of the Real Estate Registry is based on the reading and text of the law, the aforementioned modification will force both law firms and clients and companies to modify the way they grant representation to their representatives in real estate transactions and acts, and the application of legal creativity to achieve this is evident. It is well known that countless companies operate in the country whose representatives are located abroad, which makes the granting of special powers of attorney by direct appearance a less convenient option for all legal operators. By no longer accepting special powers granted by the respective Assemblies through their agreements, the situation would change the way many companies operate, which would impact time and costs. Without a doubt, proper legal advice is and will continue to be even more necessary.