General vs Special Power of Attorney in Saudi Arabia: Which Should You Choose?
A general power of attorney gives the agent broad powers across many matters, while a special one is limited to a specific act or transaction. We explain the differences, the risks and how to choose.
The essential difference between the two is the scope of authority. A general power of attorney gives the agent broad powers covering many types of acts or authorities, while a special power of attorney is limited to a specific act or a particular transaction. Choosing the wrong type can mean either a power of attorney that is not enough to complete the transaction, or more power than is wise in someone else's hands.
What is a general power of attorney?
A general power of attorney is one in which the principal authorises the agent to manage their affairs, or a wide range of matters, without specifying a particular transaction. For example, it may cover dealing with government authorities, banks and courts, and managing property. It is typically used by families when a member will be abroad for a long time, or by business owners who need someone to handle their day-to-day affairs.
However, a general power of attorney does not necessarily mean the agent can do everything. In practice, certain serious acts, such as selling, gifting, waiving rights, making acknowledgments and entering into settlements, require an express clause in the power of attorney, and authorities may require the specific clause for the transaction concerned.
What is a special power of attorney?
In a special power of attorney, the transaction or act is defined precisely, for example:
- Selling a specific property identified by its title deed number.
- Pleading in a particular case before the court.
- Receiving a specific sum or document from a particular authority.
- Representing the principal in signing a specific contract.
A special power of attorney usually ends once the purpose for which it was issued has been achieved, when its term expires, or when it is revoked.
The advantage of a special power of attorney is that its limits are clear to both the agent and the authority they deal with. The officer sees the transaction named explicitly and is reassured of the agent's authority, and the principal knows in advance that the agent will not go beyond what was delegated. Its drawback is the need to issue a new power of attorney when a transaction arises that it does not cover, which is relatively simple now that electronic issuance is available.
What are the main differences between the two?
| Aspect | General power of attorney | Special power of attorney |
|---|---|---|
| Scope | Broad, covering multiple authorities and acts | Limited to a specific act or transaction |
| Level of risk | Higher, due to wide powers | Lower, due to clear limits |
| Flexibility | Avoids issuing repeated powers of attorney | May require a new power of attorney for each transaction |
| Common use | Long travel, managing family or business affairs | A sale, purchase, case or single transaction |
When is a general power of attorney appropriate?
- When you trust the agent completely, such as a first-degree relative or a trusted partner.
- When there are many transactions that recur over a long period.
- When it is difficult for you to issue new powers of attorney, for example if you live outside the Kingdom.
Even in these cases, it is advisable to limit the power of attorney to a set period, exclude clauses you do not need, and regularly monitor what is done in your name. Remember that the principal, as a rule, bears the consequences of acts carried out by the agent within the limits of the power of attorney. If the agent sells, borrows or waives a right under an express clause, that act is attributed to the principal. This is why a broad general power of attorney is risky if it falls into untrustworthy hands or is used after the relationship between the parties has changed.
When is a special power of attorney the better choice?
- When dealing with high-value assets such as real estate and shares in companies.
- When appointing someone you are not closely connected to, such as a government relations agent or a broker.
- When appointing a lawyer for a specific case.
- When the purpose is temporary and clear.
The practical rule: grant the least authority that achieves the purpose. If you later need additional powers, issuing a new power of attorney is far easier than dealing with an unwanted act.
How do you select clauses on the Najiz platform?
Najiz works on a system of categorised clauses: the principal selects clauses from groups such as banks, real estate, courts, companies and government authorities. The more groups and clauses you add, the closer the power of attorney comes to being general; the more you limit it to specific clauses, the closer it is to being special. So read each clause before selecting it, and do not simply tick everything. You can review our powers of attorney and acknowledgments service to see how we can help.
Frequently Asked Questions
Q: Does a general power of attorney authorise the agent to sell my property? A: Do not assume so. Selling and transferring title usually require an express clause, and the competent authorities check that it exists before completing the transaction.
Q: Can a special power of attorney be converted into a general one? A: Not directly. The principal issues a new power of attorney with the required clauses and may revoke the previous one if they wish.
Q: Which is better for appointing a lawyer? A: It depends on the volume of work. A special power of attorney for a specific case is usually clearer, while a broader one may suit someone with several cases and transactions.
At FATIMA AL ASMARI Law & Intellectual Property Company in Jeddah, licensed by the Ministry of Justice for legal practice and notarization, we help you choose the right type of power of attorney and draft its clauses to protect your interests, serving clients across all regions of the Kingdom. Book your consultation now before issuing your power of attorney.
Legal sources
This article is for general awareness and is not legal advice.
