Power of attorney for real estate sales – formal requirements, multiple owners, and signature

Short answer: A power of attorney to sell, purchase, or gift real property must be in writing. The power of attorney should clearly identify the property and specify exactly which documents the attorney-in-fact is authorized to sign and what other actions the person is permitted to perform.

Written power of attorney required

The Contracts Act contains a specific written requirement for a power of attorney to enter into agreements for the purchase, exchange, or gift of real property. A verbal power of attorney is therefore not sufficient for the actual property transfer.

What should be included in the power of attorney?

• identity of the grantor and the attorney-in-fact
• correct property designation
• whether the power of attorney applies to the entire property or a share
• right to sign purchase agreements and deeds of sale
• any right to approve price and terms
• contact with real estate agents, banks, and authorities
• validity period and limitations

When the property has multiple owners

Each owner's authority must be handled. An owner cannot, through their own power of attorney, grant someone the right to sell the other owner's share.

Brokerage assignments are not the same

A real estate agent may be commissioned to broker the property without having the power of attorney to enter into binding purchase agreements on behalf of the seller. Therefore, separate the brokerage assignment from an actual power of attorney for sale.

Common mistakes

• missing property designation
• the power of attorney is too general
• there are multiple owners but only one power of attorney has been drafted
• it is unclear whether deeds of sale are included

See the Template Store's template for a power of attorney for property sales with two owners.

FAQ

Can the power of attorney be verbal?

No, for the purchase, exchange, or gift of real property, a written power of attorney is required.

Must the power of attorney be registered?

A standard power of attorney is not normally registered separately, but the original may need to be presented in connection with the transaction and the title registration case.

The article provides general information and does not replace legal advice.