Power of Attorney: Lawsuits & Collections vs. Acts of Ownership

The three most common types of notarial power of attorney in Mexico are for lawsuits and collections (pleitos y cobranzas), for acts of administration, and for acts of ownership (actos de dominio), and each one authorizes your attorney-in-fact to do very different things. If you want someone to sign the purchase or sale of a property on your behalf, you specifically need a power of attorney for acts of ownership; a power of attorney for lawsuits and collections only lets someone represent you in legal and debt-collection matters, not transfer ownership of real property. Mixing up these types is one of the most frequent mistakes when preparing a purchase from abroad.

What each type of power of attorney covers

A power of attorney for lawsuits and collections allows someone to represent you before courts, collect debts, or handle administrative procedures, but it does not authorize selling, buying, or encumbering real estate. A power of attorney for acts of administration is used to rent out, collect rent on, or maintain a property, which is useful if you only want someone to manage your home while you live abroad, but it also falls short of allowing a transfer of ownership. A power of attorney for acts of ownership is the only one that allows you to sell, buy, mortgage, or donate a property, which is why it is the one the notary public (notario) requires for a purchase and sale. All three types derive directly from the Código Civil and are the basis of most notarial powers of attorney used in real estate transactions.

The most common mistake when arranging one

Many foreign buyers grant a general power of attorney without specifying the correct type, or request one for administration only, thinking it is enough for the purchase. Before arranging any power of attorney, confirm the following with the Mexican notary public (notario):

• Whether you need acts of ownership, administration, or both combined
• Whether it must include authority to sign a mortgage loan
• Whether the power of attorney should be limited to a specific property or be general
• Whether it requires an apostille because it was granted abroad
• Whether it needs additional authority to set up or modify a fideicomiso (bank trust)

How to combine them correctly

In practice, many buyers opt for a general power of attorney that combines all three types in a single document, giving the attorney-in-fact the flexibility to sign the deed (escritura), manage the property after the purchase, and represent the owner in any related legal procedure. This avoids having to grant additional powers later if an unforeseen need arises, although it also means handing more authority to a single person, so it is worth choosing that person carefully and considering limiting the power to a set term or to a particular property.

Frequently asked questions

Can I grant a power of attorney that combines several types?

Yes, it is common to grant a general power of attorney that includes lawsuits and collections, administration, and acts of ownership in a single document, which gives the attorney-in-fact flexibility for various future procedures.

What happens if the power of attorney does not specify acts of ownership?

The notary public will simply not be able to use it for the purchase and sale deed, and you will have to arrange a new one, which delays closing and may generate additional costs.

Does a power of attorney for administration work for renting out my property?

Yes, that is exactly its purpose: it allows the attorney-in-fact to collect rent, sign lease agreements, and maintain the property without needing authority to sell or mortgage it.