Power of attorney for a management company: which powers are transferred and where the limits are
Power of attorney for a management company: which powers are transferred and where the limits are
A power of attorney for a management company transfers the right to manage the apartment — and only that. The right to dispose of the property stays with the owner: under Romanian law, a sale, a pledge and any alienation require a separate special power, which a power of attorney for management simply does not contain. The limits are set not by trust in people but by the text of the document: the more precisely the scope is described, the calmer the owner in another country can be. Below — which powers are actually transferred, what a power of attorney does not cover, how it is drawn up without traveling to Romania and what to do if a power of attorney "for everything" has already been signed.
Which powers are transferred to the management company
Powers of management are transferred: to maintain the property, to rent it out, to represent the owner before utility providers, the owners' association and the tax office. The Romanian Civil Code divides a representative's acts into 2 groups: preservation and management of property on one side, and disposal of it on the other. A general power of attorney gives the right only to the first group; alienation, pledge, lawsuits and any acts of disposal require a direct, separately stated power. This is the limit built into the law: a manager holding a power of attorney for management can neither sell the apartment, nor pledge it, nor encumber it in any way. Ownership is not transferred at all — the property remains registered to the owner or to their Romanian company.
Who needs a power of attorney and in what scope
A power of attorney is needed by every owner who cannot be present in Romania for every matter concerning the property — that is, an owner from Ukraine, EU countries, the US or Canada. The scope is chosen for the task, not "to the maximum". If the apartment is ready and let on a long-term basis, a narrow set is enough: the lease agreement, utilities, the association, the tax office. If the property is being prepared from scratch, powers are added to purchase and accept renovation and furnishing work. If ownership is held through a Romanian company, the power of attorney is issued by the company, not by an individual, and its scope is aligned with the articles of association. There is no universal template: the right document is written for a specific property and a specific mode of operation.
What the power of attorney and the management agreement contain
There are always 2 documents at work: a notarized power of attorney and a management agreement between the owner and the company. The power of attorney answers the question "what the representative is entitled to do before third parties". The management agreement answers the question "what the company is obliged to do for you": the list of work, reporting, settlement procedure, liability, term and termination conditions. The key limit clauses checked before signing: a closed list of powers instead of the wording "and any other actions"; a cap on the amounts the manager handles without separate approval; a ban on acting in their own interest and on signing transactions with themselves; the document's period of validity; the procedure for reporting to the owner. The rent goes into the owner's account — this condition is fixed in writing.
How the power of attorney is drawn up and how long it takes
Drawing it up takes a few days and does not require traveling to Romania.
Step 1. Agreeing the scope of powers for your property and mode of operation.
Step 2. Certification by a notary: in Romania, at a consulate or by a notary where you live; Ukraine and Romania have a bilateral treaty on legal assistance, so no apostille is required — notarial certification and a certified translation into Romanian are enough.
Step 3. Registration in the national notarial register of powers of attorney and their revocations: this is the register the notary uses to check whether the document is valid at the time of the transaction.
Step 4. Signing the management agreement and handing the property over for management.
The period of validity is set as limited and extended as needed — an open-ended power of attorney is convenient only for the one who uses it.
What to do if a power of attorney "for everything" has been signed
A power of attorney can be revoked at any time — the law expressly allows this even when the text says the document is irrevocable. The situation people most often come with: the owner was leaving, there was no time to look into it, and a broad document was signed with no list, no cap on amounts and no term. Formally, the manager still cannot sell or pledge the apartment under it — that requires a separate power. But the scope of all other acts is not limited by anything, and the owner does not know what is happening with the property.
The correction procedure — 4 steps.
Step 1. A review of the text: what has actually been transferred and which clauses are open.
Step 2. A statement of revocation before a notary and its registration in the national register: without this entry, the revocation does not work against third parties, and at a transaction the notary checks precisely the register.
Step 3. A new power of attorney with a closed list, a cap on amounts and a term.
Step 4. A management agreement with reporting and a settlement procedure.
A shorter path also works: granting new powers to the same representative for the same matter cancels the previous document — but in this case, too, the revocation is recorded with a notary, not in correspondence.
How Alliance works and what Armonia is responsible for
Alliance prepares the power of attorney and the management agreement, Armonia works with the property. The formula for dividing the roles does not change: Armonia shows the properties, Alliance protects the money and builds the structure. In this task Alliance handles the legal side, the banking route, the tax regime, financial monitoring and coordination of the processes; accounting is kept by specialized audit firms. The cost of management depends on the scope of the package and is fixed in the contract — together with the timelines, the amount and the working procedure. We run 2 products: full support of a real estate transaction and obtaining EU residence or citizenship. The right to Romanian citizenship is confirmed by documents — and we carry that right all the way to a passport. The authority makes the decision: no one can guarantee the result, but the file can be put together so that it raises no questions. The timelines, the amount and the working procedure are in the contract. The company's licenses are publicly available on the website.
Where to start: conclusion and next step
Start with a free compliance assessment — it is carried out before any decisions and commits you to nothing. In the written opinion you receive a recommended bank, a list of documents for the source of funds, an assessment of the origin of funds, the ownership structure and the way of working with the property. And a straight answer: whether this structure suits you. The assessment may end in a reasoned refusal — that is also a result of the work. A power of attorney is not a formality before a trip but the framework of your control over the property for years ahead. Send the word АКТИВ — we will review your situation and your property.
Can the management company sell my apartment under a power of attorney for management?
No: alienation and pledge require a separate special power, which a power of attorney for management does not contain. Ownership remains with you or your Romanian company.
Can a power of attorney be revoked if the manager is already working?
Yes, at any time — even if the document is called irrevocable. The revocation is certified by a notary and registered in the national register: it is this entry that makes it effective against third parties.
Does a power of attorney from Ukraine need an apostille?
No: Ukraine and Romania have a bilateral treaty on legal assistance, so notarial certification and a certified translation are enough. For documents from other countries, the procedure is checked separately.