Understanding a Power of Attorney

Understanding a Power of Attorney
Article Provided by Leanne Jooste, B Law Inc. Attorneys

A power of attorney is a document wherein a person (the principal) gives another person the authority or power to act on his behalf.

In order for the power of attorney to be valid, the principal (person giving the authority) must have the necessary contractual capacity to do so (implying that he or she must have the capacity to perform the acts).

Meaning, the person that receives the authority cannot have more power than the principal or perform a legal act which the principal is unable to do himself or herself.

If a seller or purchaser informs you that he/she has the authority to sell or purchase the property on behalf of someone else, then ask them to provide you with the following:

• The original power of attorney (Special Power of Attorney / General Power of Attorney)
• Copies of identity documents of both persons (the person who gives the authority and the person that receives the authority)

When completing the parties' details on the Offer to Purchase, the person that receives the authority is the person who will sign the Offer to Purchase on behalf of such purchaser or seller. That person is not the seller or purchaser directly but are only acting on behalf of such purchaser or seller according to the powers or authority given in the Power of Attorney.

Differences between a Special Power of Attorney and a General Power of Attorney

A special power of attorney is a document wherein a person will give someone else the power or authority to only do one specific thing, such as to buy or sell property on his/her behalf.

A general power of attorney is a document wherein a person will give someone else the power or authority to do various things on his/her behalf. Make sure that the wording of the document includes a paragraph which relates to the buying or selling of the property on behalf of someone else.

• The general power of attorney will need to be registered in the deeds office and will contain a deeds office stamp and unique number on it.
• If the general power of attorney has not already been registered in the deeds office, it will need to be registered at the client's cost.

De Lucia Group has been servicing the property industry for over 45 years. Contact us to ensure you get the best advice for all your property-related queries. Michael De Lucia - michaeldl@delucia.co.za