03. Buyers’ representation
When participating in a property purchase, it is important to clarify the capacity in which you are providing information. This ensures that all parties involved understand your legal standing and authority concerning the transaction.
Here are the different capacities and their definitions:
| Buyer | The buyer is the individual or entity that intends to purchase the property. As the buyer, you have the legal right to provide information and make decisions regarding the purchase. You are responsible for ensuring all details about your financial position and any related matters are accurate and disclosed as required by law. |
| Attorney | An attorney, in this context, is a person who has been granted power of attorney to act on behalf of the buyer. This legal authorisation allows them to make decisions and handle transactions for the buyer. The attorney must present the power of attorney document to validate their authority. They can provide information, sign documents, and manage the purchase process on behalf of the buyer. |
| Deputy | A deputy is a person appointed by the Court of Protection to manage the affairs of someone who lacks the mental capacity to do so themselves. The deputy must provide a court order that specifies their role and powers. They have the authority to provide information and make decisions about the property purchase, acting in the best interests of the person they represent. |
| Executor | An executor is a person named in a will, or appointed by a court, to manage the estate of a deceased person. This includes handling the property purchase as part of the estate administration. The executor must present the grant of probate or letters of administration as proof of their authority. They are responsible for ensuring that the purchase complies with the terms of the will and legal requirements. |
| Trustee | A trustee is an individual or organisation that holds and manages property or assets for the benefit of another party, according to the terms of a trust agreement. Trustees must provide the trust deed or a similar document to confirm their role and powers. They manage the property and oversee the purchase process in accordance with the trust's terms and for the benefit of the beneficiaries. |
| Company representative | A company representative is an individual authorised to act on behalf of a corporate entity that intends to purchase the property. The representative must provide documentation, such as a board resolution or authorisation letter, to validate their authority to act for the company. They handle the purchase process, ensuring that all corporate governance requirements and legal obligations are met. |
Importance of proper representation
Understanding and clearly stating your capacity in providing information for the property purchase is essential for transparency and legal compliance. Whether you are the buyer, an attorney, a deputy, an executor, a trustee, or a company representative, having the proper documentation and understanding your responsibilities ensures a smooth and efficient purchase process.
Proper representation helps in:
- Avoiding legal issues: Clear representation prevents legal complications by ensuring all actions are authorised and legitimate.
- Streamlining the process: Proper documentation and clear roles streamline the transaction process, reducing delays and misunderstandings.
- Building trust: Transparency about your role builds trust with sellers and other parties involved, facilitating smoother negotiations and transactions.
By ensuring that all necessary documentation is in place and your capacity is clearly defined, you contribute to a more efficient and legally sound property purchase process.