A Canadian Limited Power of Attorney is a legal document that authorizes another person (the Attorney) to act on behalf of the Donor (the person granting the power) for a specific, defined purpose or transaction. Unlike a general power of attorney, which grants broad authority over all property and financial matters, a limited power of attorney restricts the Attorney's authority to only the specific tasks, transactions, or matters described in the document.

In Canada, the legal framework for limited powers of attorney is governed by provincial legislation. In Ontario, the Substitute Decisions Act, 1992 (S.O. 1992, c. 30) governs powers of attorney for property, which may be either general or limited in scope. A limited POA that does not contain the continuing clause under s. 7(1) is a non-continuing power of attorney that terminates upon the Donor's mental incapacity. In British Columbia, the Power of Attorney Act (R.S.B.C. 1996, c. 370) provides the framework for creating powers of attorney with specified limits. In Alberta, the Powers of Attorney Act (R.S.A. 2000, c. P-20) allows donors to restrict the scope of authority granted.

In Quebec, a limited power of attorney is a special mandate (mandat spécial) under the Civil Code of Quebec (art. 2135), which provides that a mandate may be special, conferring authority only to perform a specific act or acts. The mandataire (attorney) cannot exceed the bounds of the mandate unless the mandant (donor) ratifies the act. This is in contrast to a general mandate, which encompasses all the affairs of the mandant.

A limited power of attorney is needed whenever you require someone to perform a specific legal or financial task on your behalf because you are unable to do so personally. The most common scenario is real estate transactions: if you are selling or purchasing property in Canada but cannot attend the closing in person due to travel, work commitments, or residence in another province or country, a limited POA allows your attorney to sign the Agreement of Purchase and Sale, execute closing documents, and complete the transaction through your lawyer's trust account.

Businesses and individuals frequently use limited powers of attorney for dealings with the Canada Revenue Agency (CRA). If you need someone to file your T1 income tax return, respond to a CRA audit, negotiate a tax assessment, or manage a tax dispute, a limited POA can authorize your accountant, tax lawyer, or trusted representative to act on your behalf with the CRA. This is often used in conjunction with CRA Form T1013.

Other common uses include authorizing someone to transfer a vehicle registration at a provincial motor vehicle office, manage a specific bank account or safety deposit box, sign a particular contract or agreement, represent you in a specific legal proceeding, deal with a specific insurance claim, manage a specific investment portfolio, or handle immigration matters. A limited POA is also frequently used when a Canadian citizen living abroad needs someone to manage a specific matter in Canada, such as closing a bank account, selling a vehicle, or managing a specific property.

A valid Canadian Limited Power of Attorney must contain several essential elements. The document must clearly identify the Donor and the Attorney with their full legal names, addresses, and contact information. The province whose laws govern the document must be specified, as each province has different requirements for execution and witnessing.

The most critical element is the precise definition of the scope of authority. The specific purpose must be clearly stated, such as a real estate transaction, banking matter, tax filing, or vehicle transfer. The transaction or property description should be as detailed as possible, including property addresses, legal descriptions, account numbers, or other identifying information. The specific powers granted must enumerate each action the Attorney is authorized to perform, such as signing agreements, executing documents, receiving or disbursing funds, and making representations.

The effective period must be clearly defined with a start date and either a specific end date or a statement that the POA terminates upon completion of the specified task. Financial limits should be set when applicable, specifying the maximum transaction amounts in Canadian dollars. The document should include a statement that it is not a continuing (enduring) power of attorney and terminates upon the Donor's incapacity. Reporting requirements should be specified if the Donor wishes to receive updates on actions taken. The document must be signed by the Donor and should be witnessed according to provincial requirements. In Ontario, two witnesses are required who cannot be the Attorney, the Attorney's spouse, or the Donor's spouse. The Attorney's acceptance should be documented to confirm they understand and agree to the limited scope of authority.