In order to buy a personal plot at Terra Frutis, you will need to be represented legally. This is not only for the purchase of the property, but for many important administrative tasks, including receiving your funds for the property purchase, developing the property and spending the property development funds on your behalf. We use the same template POA document for everybody, and it is only valid within Ecuador – it does not give power to represent you in any other countries. The document is a “general power,” which has a set list of powers, which are necessary for various tasks related to purchasing and managing the property.
In granting a power of attorney, you are the principal, and the person you are granting it to is the attorney-in-fact. In Spanish, you are the mandante or poderdante, and the attorney-in-fact is the mandatario or apoderado.
The power of attorney document has is of indefinite duration (since we will need to retain these powers for administering the property on your behalf.) These are the English translations of the clauses, for your reference. The bold + italic text explains the purpose of the power being granted.
- It is my free will to confer in effect a general power, ample and sufficient, which by law is required in favor of [attorneys-in-fact], for their own personal rights, so that in my name and representation they may realize all acts and processes related to and necessary for the administration of my assets. The procedures to be carried out are:
- Administer without limitation all of the movable and immovable assets, real and personal rights, shares, businesses, holdings, and others, present and future, that are pertinent to the principal’s personal assets, being able in that sense, with the conditions and for the accounted or deferred price deemed pertinent, to exercise, order, concede and accept purchases and sales, swaps, donations, contributions, payment and payment sessions, amortizations, mortgages, pledges, subrogations, segregations, parcelations, divisions, bail, transactions, commitments, etc. – Essentially, the power to buy and sell assets (for example property, and the tools/vehicles/etc we may purchase on behalf of the owners) and perform various other transactions and processes relating to those assets now and in the future
- Constitute mortgage for any immovable property asset of the principal to obtain credits both in favor of natural persons and in favor of any financial entity – This power would not be necessary for most people, but if you were ever successfully sued or went into judgment from a debt in Ecuador, we could potentially require this power to put a lien or mortgage on the property on your behalf to avoid losing it.
- Acquire for the principal any title, movable or immovable assets, real and personal rights, shares and holdings, etc. – Fairly self-explanatory – to purchase properties and assets.
- Obtain all construction permits that may be necessary in whichever Decentralized Autonomous Government of the country to construct building in the principal’s lands in the name of the principal. – Note that “Decentralized Autonomous Government” is how they refer to the parroquial, county, and provincial governments in Ecuador.
- Rent out the acquired assets, sign rental contracts, receive the funds from the rentals and deliver the respective receipts, etc. – The TFPP property may rent out tools to owners or other properties, or we may rent rooms in any community structures, following the preferences of the property owners.
- To be in charge of managing the perfect maintenance of the property, either the attorney-in-fact or the tenant. – Managing the property maintenance or charging others with its maintenance.
- To request basic services (electric, internet, etc) and perform any process in the utility companies and municipalities that pertain to the basic services.
- Sign all manner of contract in the name and responsibility of the principal. – This allows us to sign the community contract (the legal contract between co-owners of the horizontal property) and any other contract that may become necessary in the future.
- To sign public titles if the naturalization of the act or contract requires it, such as personal guarantees, receipts, etc.
- In the case of the acquisition of a motor vehicle, the attorney-in-fact may perform any vehicular revision or process at the National Transit Agency or any government organization pertaining to the vehicle, including registering it.
- Perform any processes or payments required for the Internal Revenue Service – Paying taxes, etc.
- Pay off creditors, decide form and terms of payment, remove liens, etc.
- Recognize, accept, pay, or charge any debt or credit, for capital, interest, dividends, amortizations, signing receipts, balances, etc.
- Perform renewals of loans in banks, cooperatives, etc. – In the case that an owner requires a loan or other financial instrument such as CD etc in a local financial institution.
- Perform processes/paperwork in various local banks and financial institutions (named in the document by their proper names), including opening/closing and administering accounts, receiving wires, depositing and withdrawing money, etc. – The general power should include this power to satisfy the typical AML/KYC requirement that we can receive and administer funds in the name of the principal rather than any third party
- Send/receive money transfers, manage savings and other accounts, receive funds, deposit and withdraw funds internationally, generally operate with financial institutions in Ecuador. – See above, basically the same clause twice to satisfy that we legally have the ability to receive and manage funds on your behalf.
- Send, accept, etc, cash payments, checks, bills of exchange, future payments, etc.
- Order judicial processes and represent the principal in court or in any judicial process – To represent the principal legally if it became necessary.
Note that with a power of attorney document, the attorney-in-fact must act according to the will of the principal, and any transgression against the principal’s will is considered “abuse of confidence” under Ecuadorian law.