Real Estate Power of Attorney

A real estate Power of Attorney grants legal authority to another party or agent to make financial decisions regarding the principal’s real property, including purchase and sale. In particular, the Power of Attorney provides the authority to negotiate, purchase, sell, convey, transfer, mortgage, preserve, or dispose of the real estate property (or properties) mentioned in the form.

The agent may manage the principal’s real estate property; sell, convey and mortgage realty for prices and on terms as considered prudent; foreclose mortgages and take title to property in the principal’s name; and implement deeds, mortgages, releases, satisfactions and other instruments relating to realty.

A real estate Power of Attorney is limited only to the extent that it grants authority only for real estate transactions; however, the powers granted in that regard are quite broad so the principal must grant such powers only to someone he or she trusts unconditionally. He must be confident that the agent will act in his or her best interests, keep accurate records, keep his or her property separate from the agent’s properties and avoid conflicts of interest. Otherwise, the principal could be in danger of losing the real estate to a dishonest individual.

Any Power of Attorney that deals with the transfer of real estate must be notarized because the Power of Attorney needs to be recorded along with the transfer documents. All previous Power of Attorney documents relating to the property (or properties) are immediately annulled upon execution. Once executed, this Power of Attorney form goes into effect and remains in effect until revoked in writing by the principal, or on a specified date, whichever comes first. To revoke, cancel or annul any powers, a revocation form must be used.

Power Of Attorneys, Probates And Real Estate Trusts

There are times when the Seller or Buyer to a real estate transaction may appoint someone to act on their respective behalf and even to sign agreements relating to the Contract of Purchase and Sale as their agents, thereby meeting the requirements at law that all dealings involving land or interests in land be in writing. However, it is always mandatory (in British Columbia) that the agent obtain specific instructions prior to signing any documents on behalf of the parties to a transaction. This is all the more true when a Realtor is authorized to sign on behalf of one of the parties.

The written authorization must set out the exact terms, conditions and scope under which the agent is authorized to sign. A telegram, letter or fax may be used for this purpose, but it must be received by the agent before he/she attempts to act on the Seller’s or Buyer’s behalf. Agents must avoid signing documents on behalf of anyone based on verbal, telephone or e-mail instructions. Furthermore, evidence of written authority granted by one party to a real estate transaction must be attached to any and all documents where the agent has signed on behalf of the party.

Powers Of Attorney

Where it is desirable or necessary to rely on a Power of Attorney, it is widely recommended that it be granted to someone in accordance with the advices of a lawyer. When a person who has been granted a Power of Attorney signs a contract involving land or an interest in land on behalf of the person granting the Power of Attorney, the correct way for the contract to be completed is as shown on the following example:

“Mary Smith grants a Power of Attorney to Ted Lee to enter into a contract for the sale of her property located at [address in full]“.

Ted Lee, then, would sign both the Listing Agreement and the Contract of Purchase and Sale using the following statement:

“Mary Smith, by her attorney in fact” followed immediately by Ted Lee’s signature.

Furthermore, a transfer of title executed under a Power of Attorney to be filed at the Land Title Office (in British Columbia) at the time of completion requires the Power of Attorney to be drafted in proper form. This is so, because different Power of Attorneys can be granted by one person to another. While the form of such authority may authorize a party to sign contracts and certain other documents for another party, it may not be sufficient for Land Title registration purposes. Therefore, whenever a Power of Attorney is contemplated or utilized in a trade involving real estate, the parties ought to seek the advices of legal counsel as soon as possible to ensure the form of the Power of Attorney being used is valid and is acceptable for registration. It should be also noted that the Power of Attorney may expire after a specific time or be invalid for other reasons. Therefore the advices of a legal practitioner specializing in real estate transactions are always the best venue.

Dealing With Legal Or Beneficial Owners

The person or legal entity shown as the registered owner of a real property on the Certificate of Title at the Land Title Office may not be the person or entity that signs the Contract of Purchase and Sale as Seller of that particular property. This is a relatively common occurrence in the real estate trade. For a variety of reasons one entity may appear as the registered owner, while another entity may sign the Contract of Purchase and Sale as the Seller. This may happen, for example, if the registered owner holds the subject property in trust for another entity. In this case the beneficial owner (the person for whom the property is being held in trust) may sign the contract.

If the contract is signed by the beneficial owner, there will usually be a recognition of the trust in the contract {for example, John Doe in trust for Mary Black). As well, there will be normally a covenant by the Buyer to accept a transfer from the registered owner and not the beneficial owner who signs the contract. This covenant acts as a waiver of section 6 of the Property Law Act (in British Columbia), which provides that the person who signs the contract as Seller is the person who must sign the transfer. There may be warranties or representations of the beneficial owner, of the registered owner, of both, or limited warranties and representations of each.

In other circumstances the registered owner may wish to structure the transaction as a sale of shares rather than a sale of real property. Such sale may involve the shares of the registered owner or the shares of the beneficial owner of the interest in land.

It is always advisable to deal with legal or beneficial owners after a thorough title search has been executed. For example, in a typical residential real estate transaction problems can arise when a Contract of Purchase and Sale is drafted with the Seller when, in fact, the property is legally owned by some other person or company. In this particular case the Seller may have to transfer the subject property into his or her own name to comply with section 6 of the Property Law Act (a costly transaction involving, among other things, payment of taxes), or face the possibility that the Buyer may legally refuse to complete the transaction if presented with a transfer from the Seller as shown on the contract, rather than the registered owner as shown on title.

Buying From An Estate

A Buyer purchasing from an estate must be assured that the title must pass to him or her without legal problems, and that all parties who can claim against the estate have had their opportunity to do so. If Letters Probate have been granted already and the Wills Variation Act (in British Columbia) has been complied with, no additional clause is required. If, however, these steps have not been concluded a clause similar to the one that follows should be incorporated into the Contract of Purchase and Sale:

“Subject to the Seller receiving the following by [date]:

1) copy of Letters Probate; and 2) assurance that everyone entitled to claim under the Wills Variation Act has waived or released his or her claim against the subject property“. An example of a proper way for an executor to sign a contract on behalf of the estate is:

“John Smith, Executor for the estate of (name of the deceased).

In some cases there may be a delay in obtaining Letters Probate.Should that occur, the Buyer may agree to an extension to allow the Executor additional time to obtain the Letters Probate.

What Documents Do Trial Attorneys in California Look For?

Sustaining personal injuries from any tragic accident in California due to other party’s fault can be so disastrous. Unless you were able to recover damages from the liable person, we may consider that justice is not yet fully served. Thus, it is necessary for you to have credible allies in pursuing a claim suit – professional trial attorneys in California.

Meanwhile, you should also know that proper assessment of a legal case is significant to increase the merits of such action. This is one of the main reasons, why it is imperative for your legal counsel to have a complete and thorough review of all the following documents and evidences before pushing through with your claim:

• Insurance policy – presenting your insurance policy to your legal counsel will enable him to identify the type of coverage you have, based on the terms stated. Yet, if you do not have a copy of such statement from your insurance company, you may opt to give your attorney a written consent to obtain it for you.

• Proof of premium payments – your attorney will be requesting for all the statements certifying that you are fully updated in paying your premiums. This will serve as evidences that your policy is updated and enforceable.

• Police reports – usually, personal injury-causing incidents require the response and proper documentation of the police authorities. In these reports, the police officers write down all the essential facts that transpired in the accident. This may also include their initial opinion on who should be held liable for the damages.

• Tickets handed over for any traffic violations – if you have been given tickets for any traffic violation, you have to inform it to your attorney because such instances can definitely cause great effects on the result of your case.

• Copy of your statements – after your insurance company has been informed of the accident, there is a great chance that they will contact you and get some statements from you regarding the accident. You should then furnish a copy of such statement to your California trial attorney for an evaluation. However, it is not advisable for you to explain everything to your insurance company without the advice of your counsel.
• Pictures taken from the actual scene – in some cases, verbal or written testimonies are not enough to prove a lawsuit. Especially during accidents, pictures taken from the site can be very helpful. These pieces of evidences may also indicate that the accident has been caused by the other party’s fault.

• Medical and/or psychological records – this will enable your attorney to calculate the possible amount that you may recover. Generally, these include the names and contact information of all the hospitals, clinics and doctors who have given you medical assistance. Furthermore, it is also vital to include information about your accumulated expenses together with all its corresponding receipts.

• Record of your earnings – the law that covers personal injuries gives the victims the right to be reimbursed for their lost wages due to the amount of time they need to spend in hospitals for their treatment process. Therefore, you should present your pay slips to your attorney to specify the amount that you have lost.

Filing a personal injury claim is not as easy as you think. Although you are being represented with the most competent legal advocate, your obligation to work hand in hand with your attorney is very vital in attaining the best and most favorable result.

How to Give Someone Power of Attorney

A Power of Attorney is a form that can be used to legally authorize some one else to handle your financial affairs. For an example, many times people give their dependent mothers the legal authority to withdraw money from their bank account while they’re away on vacation.

The most important thing to understand about (General) Power of Attorney forms is that they are only for giving some one else permission to handle your financial matters for you.

It is also important to know that there are several types of power of attorney forms, including one involving health care. Be sure you know which one you want.

Once you know whether you want a health care, durable, or just general Power of Attorney form then locate the form online for print. You should be able to find a lot of different legal form providers just by searching the forms name. That’s also a good way to find more information about the different kinds of POA forms. Also, be aware that each state has a preferred form.

Now fill out the form. You will need to include your full name and the full name of the person your appointing. The person your appointing is referred to as the attorney-in-fact on the form. It’s just the terminology they use for appointee. There will also be a series of boxes to check that allow you to choose various types of matters you are giving permission for this person to handle. Select all of the powers you are giving to your attorney-in-fact. Then sign the form before a notary and make sure it gets filed with the county clerk.

Also, you should know that you can revoke the form at anytime. This is done by filing a Revocation of Power of Attorney. It’s also a good idea to notify your power of attorney appointee that their powers have been revoked and tell the same to anyone they’ve done business with on your behalf.

Be sure that the person you are naming in your document is fully aware of it and approves. They should be comfortable with the whole thing. You should also feel comfortable too; see an attorney if you feel you don’t understand the form.

This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as legal advice or used to make legal decisions. Consult an attorney in your area if you’re seeking legal advice.