Power Of Attorney For Real Estate: Managing Property Interests In British Columbia
Real estate is a sector that often involves high-octane and financially hefty transactions. Whether you want to buy, sell, or rent a property, a lot of considerations go into making the final decision. Under such circumstances, becoming mentally or physically incapable can lead to various complications.
This is why you need a power of attorney (POA) for property. This legal document lets you designate specific tasks related to real estate transactions to a trusted person. A well-drafted POA relieves you from various administrative burdens and uncertainties.
POA for property helps you get specific transactions carried out in your property’s best interest if you are unable to do so. Let’s dive a little deeper and see how it works in the real estate sector of British Columbia (BC).
What Is A Power Of Attorney For Real Estate?
A POA for real estate is a legal document that lets you grant a trusted person the authority to conduct real estate transactions on your behalf. This individual is called an attorney, and you will be called a donor or grantor.
Depending on your preferences, you can appoint any mentally sound person above the age of 19 to act as your attorney. Your attorney will handle your property-related affairs if you become mentally or physically incapable of handling them. They may also perform specific actions if you are not physically available for the same.
How Does A POA Help You Manage Properties In British Columbia?
You can delegate various responsibilities to your attorney based on your circumstances and preferences. Here are some of the most common ways in which you can manage real estate transactions in BC with a POA:
Buying Or Selling A Property
You can draft a POA to perform actions related to buying or selling a property in British Columbia. A chosen attorney will sign contracts, attend closings, contact specific parties, and complete specific transactions on your behalf.
You can prepare this document if:
- You won’t be physically present to complete the deal
- You are a senior transferring a property to your loved ones
- You are an absentee landlord
Frequent travelers and military personnel also prepare POAs to handle transactions related to property purchases and sales.
Managing Your Rental Property
A property-related POA helps an attorney manage your rental property if you travel frequently or fear losing your mental/physical capacity.
The chosen attorney can perform various tasks related to:
- Collecting rent
- Preparing/signing lease agreements
- Conducting property repairs
- Handling evictions or specific disputes
You can avoid direct involvement in these matters by delegating specific tasks to a responsible attorney.
Property Mortgaging Or Refinancing
If you plan to mortgage or refinance a property in BC, your attorney can perform various tasks on your behalf, such as:
- Approaching and negotiating with mortgage lenders
- Signing mortgage documents
- Paying off the existing mortgage and getting a new one (for refinancing)
Types Of Power Of Attorney For Real Estate In British Columbia
You can choose a suitable type of power of attorney for property based on the actions to be taken and your circumstances.
Here are the most common POA types you can prepare for real estate in BC:
General POA
This document is prepared to handle a broad range of property tasks. It usually involves an attorney handling a donor’s affairs once they lose mental or physical capacity.
You can also prepare a general POA for short-term purposes. For example, if you are going abroad for a month-long vacation, you can have an attorney handle your property-related transactions until you return.
Enduring POA
This POA is prepared for long-term purposes. It appoints an attorney to continue handling the donor’s operations even after they lose mental capacity. For example, you may appoint your child or grandchild to handle your property’s transactions if you develop an illness like dementia.
Limited POA
As the name suggests, this POA grants your attorney the power to perform specific transactions for a specific time period. It is generally prepared for short-term property management.
Common Mistakes To Avoid While Making A POA For Real Estate In BC
Preparing a POA for property in British Columbia is a task loaded with responsibility. Here are the most common mistakes you should avoid while drafting it:
Working On An Outdated POA
Always keep your POA updated to ensure its validity. Mortgage lenders, land title offices, financial institutions, and other parties reject applications and transactions involving outdated POAs.
Skipping LTSA Registration
Every grantor should register their POA with the Land Title and Survey Authority (LTSA). Skipping this won’t allow your attorney to complete any real estate transaction legally in BC.
Failing To Revoke An Old POA
If you have changed your attorney or your POA has become outdated, you will need to revoke the document. If you create a new POA without revoking the old one, both will be considered valid, leading to a lot of confusion.
Choosing The Wrong Attorney
Ultimately, everything depends on the power of attorney you choose to handle your property-related affairs. Making a wrong choice can hamper your valuable assets and transactions. You should also understand the scope and limitations of your POA to ensure that the attorney does not take undue advantage of their powers.
How To Create A POA For Real Estate In British Columbia?
Creating a POA for property in BC is not an elaborate process as long as you seek professional help. Here are the key steps involved:
- Consult a trusted and experienced lawyer in BC.
- Choose a reliable attorney to manage your property transactions.
- Specify the powers your attorney has, along with the limitations and duration of these powers.
- Register your POA with the LTSA.
- Store the document securely and maintain its confidentiality
The Final Word
Property transactions are often sensitive and involve heavy finances. If you plan to make a POA for real estate in British Columbia, do so with reliable legal help. Moreover, choose the most trusted attorney possible who would work in your property’s best interest in your absence.