07. Selling via Power of Attorney
Selling via Power of Attorney refers to the process of selling a property on behalf of someone else who has granted authority to act on their behalf through a power of attorney document. The attorney is often a friend or family member trusted by the property owner (the principal) to act in their best interests. This personal relationship is important as it ensures that the attorney understands the principal's wishes and preferences regarding the sale of the property.
Here's how it works:
| Power of Attorney (POA) | A power of attorney is a legal document that grants someone else (the attorney) the authority to make decisions and take actions on behalf of the person granting the power (the principal). The power of attorney may be granted for various purposes, including property transactions, financial matters, or healthcare decisions. |
| Granting authority | In the context of selling a property, the property owner (the principal) may grant authority to another person (the attorney) to handle the sale of the property on their behalf. This may occur for various reasons, such as the principal being incapacitated, unavailable, or simply preferring to delegate the responsibility to someone else. |
| Attorney's responsibilities | The attorney has a legal duty to act in the best interests of the principal and carry out their wishes regarding the sale of the property. This includes listing the property for sale, negotiating offers, entering into contracts, and completing the necessary paperwork on behalf of the principal. |
| Legal requirements | When selling a property via power of attorney, certain legal requirements must be met to ensure that the transaction is valid and legally binding. This may include providing proof of the power of attorney document, complying with any specific instructions or limitations outlined in the document, and obtaining any necessary approvals or consents. |
| Conveyancing process | The conveyancing process for selling a property via power of attorney is similar to a standard property sale, with the attorney representing the principal throughout the transaction. This includes working with a conveyancer or solicitor to handle the legal aspects of the sale, liaising with potential buyers and their representatives, and facilitating the transfer of ownership. |
| Completion of sale | Once a buyer is found and the sale is agreed upon, the attorney signs the necessary legal documents, including the sale contract and transfer deed, on behalf of the principal. The proceeds from the sale are typically deposited into an account designated by the principal, and any outstanding debts or obligations related to the property are settled. |
Selling a property via power of attorney involves granting authority to another person to handle the sale on behalf of the property owner. This allows the sale to proceed even if the owner is unable to handle the transaction themselves, providing a practical solution for managing property affairs in various circumstances.
Attorneys acting jointly vs. severally
When attorneys are appointed under a power of attorney, they can be authorised to act either jointly or severally, or both.
Here's the difference between attorneys acting jointly and severally:
Attorneys acting jointly
- Attorneys acting jointly must make decisions together, meaning that all appointed attorneys must agree on any actions taken.
- This arrangement ensures that decisions are made collectively and that no single attorney can act unilaterally without the consent of the other(s).
Jointly appointed attorneys are commonly used when the donor (the person granting the power of attorney) wants to ensure that all decisions are made with consensus and oversight.
Attorneys acting severally
- Attorneys acting severally have the authority to make decisions independently of each other.
- Each attorney can act on behalf of the donor without the need for agreement or consultation with the other attorneys.
- This arrangement provides more flexibility and convenience, as it allows each attorney to act promptly and efficiently without waiting for consensus from other attorneys.
The main difference between attorneys acting jointly and severally lies in the decision-making process. Attorneys acting jointly must make decisions together, while attorneys acting severally can make decisions independently. The choice between these arrangements depends on the donor's preferences and the specific circumstances of the power of attorney.