GuideLegal

Bidding by power of attorney – why it must be notarised

By Pascal Szorath··2 min read·

If you bid for someone else – even your spouse – you need a publicly certified bidding authorisation. Without it at the hearing, your bid is rejected.

Can't attend the auction hearing yourself, or want to bid on behalf of another person? Then you need a bidding authorisation (Bietvollmacht) – and in a specific form. A common, costly misconception: a simple written power of attorney is not enough.

Important: the power of attorney only solves the formality problem. Whether the property itself is a sound choice, you must check beforehand; the risk classes and the guide to inspecting a property help with this preparatory work.

The power of attorney must be publicly certified

Anyone bidding for an absent third party must prove their authority to act at the hearing through a publicly certified power of attorney (Section 71(2) ZVG). "Publicly certified" means: the signature on the power of attorney was certified by a notary (or the power of attorney exists as a notarial deed).

This expressly applies to spouses too: anyone bidding on behalf of their spouse likewise needs a certified power of attorney.

Presentation at the hearing – immediately, or the bid is rejected

The proof must be available immediately at the hearing. If the representative cannot present the certified power of attorney on the spot, the bid is rejected. Submitting it later does not cure the defect. So plan the notarial certification in good time before the hearing.

Special cases

  • Companies (GmbH, UG, etc.): managing directors prove their authority to act through a certified, recently dated extract from the commercial register. How recent the extract must be is handled differently by the courts (often around two weeks).
  • Multiple bidders (bidding consortium): either everyone is present in person, or those who are absent grant a certified power of attorney.

In brief

  1. Bidding for others? Only with a publicly (notarially) certified power of attorney – including for your spouse.
  2. Go to the notary in good time, and bring the original to the hearing.
  3. Without valid proof at the hearing: the bid is rejected.

Note: General orientation, not legal advice. If in doubt, ask the competent local court about the form and requirements in advance.

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