What is an endorsement?

An endorsement is the act of partially or totally assigning ownership or power over a document and is applied to any title to property or credit.

The documents or property titles that are likely to be endorsed are:

• Checks
• Bills of exchange
• Promissory notes
• Invoices (especially automotive)

The endorsement consists of a person transferring to another the power to carry out acts of dominion in her name or transfer ownership of a document, the endorser gives this power of attorney through a signature made on the back of the document. document.

The endorsement can only be made on the back of the document, with the exception of automotive invoices, where it is done if possible in front.

If the endorsement is made on a check, the endorser gives the necessary rights so that in this way the endorsee can make the change.

There are three types of endorsements applicable to credit instruments:

1.- The property endorsement, which, transmits the power in an absolute way over the document in question, that is, it becomes the property of the endorsee who acquires the rights and obligations over it.

2.- The endorsement in attorney, is one that does not transfer ownership of the document, that is, the endorsee only acquires the power to present the document or collect it.

3.- The guarantee endorsement it is in which the power of the document is transferred as a pledge.

Despite the fact that other information can be included such as: the name of the person who receives the power of attorney, the type of endorsement and the place and date of the transfer of the These are not necessary, since the signature of the endorser is the only mandatory requirement and is valid before public, private and judicial.

Endorsement example:

Endorsement of check from Mr Javier Gonzales García in favor of Mr Eduardo Osorio Sánchez.

This endorsement has the signature, which in legal terms is the essential point and the date that indicates the moment in which the transaction is carried out.