An authorization letter is a business letter used in business settings to grant permission to one party to act or take the charge on behalf of another party. It's not possible for you to be present everywhere and take all the important decision, this is where you need to prepare an authorization party to allow your most trusted source take the charge in case you're not present to take the decision. In simple words, an authorization letter sample is used to grant someone else permission to take decisions on your behalf. These decisions could be anything such as legal affairs, bank transactions, property matters etc.
A letter of authorization is prepared to protect and secure both the parties. An authorization letter is required by law whenever something is required and performed. This letter is one of the most important business letters, so one should take utmost care while writing one. Check out the samples, examples, and templates below to see how an actual authorization letter is written.
As mentioned above that an authorization letter is simply used to grant someone an authority, rank, or ability to enter a legally binding and take a specific action. An authorized party will be able to take the charge for specific matter after signing the authorization letter.
This letter is extremely important in business. If you're running a business, then you must know that it's not possible to always available while taking every decision. An assistance is always required to make the decision process quicker and simpler. Moreover, this letter is required by law whenever a new property or anything is legally acquired. For an instance, if you're renting a property then you need an authorization letter from the property owner in order to perform any activity on the rented property.
Make sure to prepare a well-written authorization letter. Check out the samples and tips to write a letter of authorization in order to avoid the mistakes. Download authorization letter sample to avoid mistakes.
Quick format of Authorization Letter
- Put your name & address on the top left side of the page.
- Mention the date.
- Then write the recipient's name and address.
- Write Salulation i.e. Dear, Mr, Mrs, Sir etc.
- Start writing the main body of the letter, make sure to keep the letter concise and precise.
- Clearly specify the authorities that your representative has.
- Mention the date of the authorization
- Mention the reason for this authorization
- Mention if there are any restrictions on the authorization.
- Conclude the letter.
Example of Authorization Letter
Here is a example of an authorization letter.
Authorization Letter Sample
Purposes of writing Authorization Letter
There can be multiple purposes when it comes to writing an authorization letter. You can write an authorization letter to give someone authority to withdraw your money, allow someone to make a business transaction on your behalf etc. The following situations may require an authorization letter
- An authorization letter is required whenever a minor is traveling without their parents or guardians. It's important to authorize concerned adults traveling with kids to project minor from child custody issues.
- You can also write an authorization letter to allow someone to handle the bank transaction in case you're not available to access the bank by yourself.
- You may authorize trusted source to take a business decision on your behalf. Not every business deal waiting for you, there might be situations where a quick decision is required. If you already have authorized someone then decision-making process will be quicker in case you're not available.
How many parties are involved?
Following three parties are involved in authorization letter.
- First Party: A person who is granting the authorization i.e original rights holder such as an owner of a bank account.
- Second Party: The second party is the group or individual with whom the first party is conducting a transaction, such as a financial institution.
- Third Party: A person to whom the authority is given.
It is important to note that the letter should be addressed to the second party. The letter is handed over to the third party. Make sure to write a letter in business format only. All the important details such as the duties or authorities of third party and restrictions should be clearly mentioned. A letter should be signed by the first party and attested by a witness or notary.
Here is one example template that will help you in understanding the basic format and writing style of authorization letter.
Authorization Letter Templates
How to Write a proper Authorization Letter?
It's important to follow the correct format while writing any business letter. Here is the format that one should follow while making an authorization letter.
Write Your Name and Address on Top Left Side
Firstly write your name and address on the top left side of the letter. Always start writing by mentioning your name and address on the top. Write the name of your city, state, and Zip code.
Mention the Date
Skip one line after writing your name & address and then write the current date on the next line. Make sure to write the full date such as 25th Maay 2018.
Include Recipient’s Name and Address
Skip one line after writing a date and then put the name & address of a recipient.Include all the details of recipient just like you wrote your details in the first step.
Write the Salutation
Now we're done with the letterhead, it's time to write the body of the letter. The body begins with a salutation. Use salutation such as Mr., Mrs., Ms., and Dr. In case you do not know their name, you can include To Whom It May Concern.
Specify Duties, Reason, and Dates
Now specify the duties that you're granting to the third party. Also, mention the reason for this authorization. Specify the starting date of authorization. Make sure to keep this part concise and precise.
Finalize the Letter
Finish the letter of authorization with a closure that is sincere, thankfully and so on.
A letter should be signed by the first party and attested by a witness or notary. You should also keep a copy of a letter for your record.
Now you know What is authorization letter, how many parties are involved, and how to write one. Use the information shared above to write a proper authorization letter. Make sure to authorize your trusted source only to take decisions or operate on your behalf.
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