Powers of attorney executed abroad for assets and proceedings in El Salvador

A power of attorney should not be signed first and tested for sufficiency later. The parties should identify who will use it, the receiving institution, the asset or proceeding, the documents to be signed and whether the attorney-in-fact may receive funds, incur debt, grant security or delegate authority.

An overly generic power may be insufficient for acts of disposition. An unnecessarily broad power may create control risks. The objective is clear authority sufficient for the assignment, together with limits appropriate to the transaction.

The first route is execution before a Salvadoran diplomatic or consular office. The Notarial Law permits certain officials to authorize instruments intended to have effect in El Salvador, and the Ministry of Foreign Affairs provides a service for powers granted by individuals and legal entities.

The second route is execution before a notary or competent authority abroad. If the Hague Apostille Convention applies, the public document will ordinarily require an apostille; otherwise, the relevant authentication or legalization chain must be completed.

An apostille certifies the official’s signature and capacity, not the substantive sufficiency of the authority. It does not cure incomplete powers, an incorrect property description or missing corporate authorization.

The company’s existence and the authority of the person signing must be confirmed in addition to the text of the power.

The document should reflect the assignment and the controls the principal wishes to retain.

Article 1902 of the Civil Code provides that authority to sell, mortgage or create rights over real estate must be granted through a special power or a general power containing a special clause. The property must be identified, and the attorney-in-fact must be authorized to receive the price or funds. If a sale is not for cash, the maximum payment term must be stated.

Article 1903 further provides that authority to mortgage does not include authority to sell, and vice versa. The registry description, authorized act, payment mechanics and authority to clarify or file documents should be checked before execution.

If the power or its authentications are in another language, the applicable Salvadoran translation process must be completed. Translating only the body while omitting certificates, seals or the apostille may lead to objections; the document and authentication chain should be reviewed as one package.

Registration depends on the principal, attorney-in-fact and transaction. A registry, bank or authority may also require an original, recent issuance, internal forms, tax information or specifically worded authority.

Advance coordination is usually more efficient than attempting to correct from El Salvador a document already executed abroad.