Flashcards Studio

A landowner in Bohol executes a Special Power of Attorney on February 1, 20XX, appointing her nephew Ken Lim to sign, acknowledge, and execute instruments necessary to convey the land and to take any action to effect transfer. The SPA states only that Ken may sign documents and execute deeds; it does not expressly authorize acknowledging instruments before a notary. On March 15, 20XX, Ken appears before Notary Public Nora Reyes in Tagbilaran City and acknowledges a deed of sale from the landowner to a buyer, signing as “Attorney-in-Fact for Maria Lim.” The Notary issues a certificate stating that the instrument is the act and deed of Maria Lim. The deed is intended to be a public instrument to effect transfer. Maria challenges the instrument as invalid.   (a)Identify the controlling rule governing acknowledgment by an agent in a notarial act. (b)Apply the rule to the facts and determine whether Ken’s acknowledgment is valid. (c)If the acknowledgment is invalid, what is the status of the deed and the effect on third parties, and what remedial steps should be taken?