Your Guide to the Letter of Authorization

Key Takeaways

• A Letter of Authorization delegates authority from one party to another, enabling the authorized party to act on behalf of the other.
• It provides a formal, legally binding framework to validate permissions, streamline processes, and ensure compliance with regulations.
• Remember to include the names of involved parties, scope of authority, duration, and signatures to make your letter clear and legally sound.
• Commissioning your letter adds credibility and legal weight, especially in the case of disputes.
• NotaryPro’s free customizable template enables you to quickly draft and complete your Letter of Authorization in minutes.

If you’re an individual or organization looking to delegate specific permissions to another party, you may need a Letter of Authorization. A Letter of Authorization holds the key to streamlining processes and removing roadblocks related to a lack of authorized access.

In this guide, we’ll walk you through the steps of creating a Letter of Authorization, while providing an overview of the document. After reading this blog, you’ll be ready to draft your own letter with our free Letter of Authorization template.

What is a Letter of Authorization?

A Letter of Authorization formally delegates authority or power from one party to another. It grants the secondary party permission to perform important actions on the principal party’s behalf. Individuals and businesses can use a Letter of Authorization to grant someone permission to take various actions, like managing financial transactions.

It contains the name and signature of the entity or individual granting permission, and the name(s) and signature(s) of the authorized individual(s).

Some of the following situations may call for a Letter of Authorization:

• Financial Transaction Management: You can grant a trusted person — like your spouse or business associate — permission to manage your bank account while you’re travelling abroad. A Letter of Authorization can enable that person to handle deposits, bank withdrawals, and other specific permissions.
• Medical Decision Authority: If you’re undergoing a surgical procedure, a Letter of Authorization can authorize a loved one to make medical decisions for you. These decisions range from surgical procedures to other treatments a doctor might recommend.
• Document Pickup: If you need someone to pick up certain documents on your behalf, like a transcript or corporate documentation, you can authorize them to do so with a letter.

A Letter of Authorization should contain all the correct elements to ensure permission is appropriately granted. It’s important that the letter is clear and understood by all parties. 

NotaryPro’s free Letter of Authorization template enables you to prevent roadblocks by ensuring your letter contains all the required information.

What is the Purpose of a Letter of Authorization?

A Letter of Authorization plays a pivotal role in various spheres, serving as a formal document to delegate authority and streamline processes. Its importance lies in providing a clear, legally binding framework for individuals or entities to act on behalf of others. 

You can use a Letter of Authorization for the following purposes: 

• Validate granting specific rights, permissions, or powers to another party.
  
• Affirm that the authorized party has the legal right to act on behalf of the granting party.
  
• Specify the duration and limitations of the authorization, if applicable. 
• Provides a legal basis for the authorized party to carry out actions or make decisions as directed.
  
• Streamline processes by enabling the efficient delegation of tasks, decision-making, and representation.
• Help ensure compliance with legal and regulatory requirements, particularly in industries with strict guidelines.
  
• Safeguard against unauthorized or potentially dangerous activities.

Drafting a Letter of Authorization

Here, we’ll take you through the process of drafting and your Letter of Authorization. You’ll learn what to include in your letter, and how to ensure it’s legally binding. Our fillable templates make drafting a letter easy, and after reading this blog, you’ll be a pro! If you’re ready to begin, get started with our Letter of Authorization template.

• Name the Parties Involved: Provide the full legal names and contact details of the authorizer (party granting authority) and the authorized party (party receiving authority).

• Define the Authorization Scope: Specify the actions or decisions the authorized party is permitted to take on behalf of yourself or your business. Be as detailed as possible to avoid ambiguity or confusion.

• Specify the Duration of Authority: Provide the date you are issuing authority and if applicable, the date the authority expires. If the authorization is not granted indefinitely, an expiration date ensures that authorization is only given for a specific period.
  
• Sign and Date Your Letter: Ensure your Letter of Authorization is signed by the party granting authority and the party receiving it. 

• Commission Your Letter: You can meet with a notary public to get your letter commissioned and enhance its legal validity. Simply book an appointment, upload your letter, and sign it before a notary public during a video call. The entire process should be done in under 7 minutes.

Bonus Tips for the Letter of Authorization

• Clarity is Key: Ensure your letter is clear and to the point. Being vague or long-winded can lead to misunderstandings, so it’s best to be specific and clear.
• Stay Legal and Compliant: Research and follow any legal requirements or regulations applicable to your Letter of Authorization. Ensure that the nature of your permission is allowed and that actions to be taken meet regulatory requirements.
• Regular Review and Adaptation: Periodically review any permissions given to authorized parties, and create a new letter if circumstances change. 
• Use a Formal Business Tone: Use a professional and authoritative business tone when writing your letter.
• Consult Legal Professionals: When in doubt, seek legal advice. Consulting with a legal professional can help ensure that your Letter of Authorization is legally sound and in your best interest. 

Commissioning Your Letter of Authorization

A Letter of Authorization doesn’t legally need to be commissioned, but this adds credibility to your letter. Commissioning your letter adds legitimacy to it; if a legal dispute surfaces in the future, a commissioned letter will hold more weight in court. 

Once your letter is prepared, you can book an online notary appointment here. Just make sure you wait to sign your letter, as a notary public must witness your signing. 

Draft a Letter of Authorization Today

A Letter of Authorization is a powerful tool for delegating authority and streamlining important processes. As you navigate the complexities of granting permissions, remember the importance of writing a clear and precise letter. 

Simply gather the required information and fill in a few fields, and you’ll have a perfectly formatted letter sent to your inbox! Hopefully, after reading this blog, you’ll feel more confident in drafting a Letter of Authorization. At NotaryPro, we offer a free Letter of Authorization template, so you can complete your letter in a few minutes. Finish the process from the comfort of your home or office using our online notary services.

Get started with our customizable Letter of Authorization template today!