Power of attorney - what can possibly go wrong?

Power of attorney - what can possibly go wrong?

Investor · North Richland Hills, TX · Member since 2013 · 1k+ posts · 1k+ votes

Hello BP!

I found a house for sale where the seller gave power of attorney to sell the house to his brother. Here are the few details I got from the listing agent:

A family lived in this house for a long time. Then the wife died about a month ago and the husband got into a nursing home. I don't know if there are any children involved.

The husband gave his brother a power of attorney to sell the house.  Meanwhile, the house is currently occupied by some relatives who are supposed to move out upon the sale.

I checked the public records and found nothing about this power of attorney. Maybe it has not made into the county online system yet or maybe it does not even exist - I don't know that.

What can I do to protect myself in this situation? How do I verify the power of attorney is legit?

Here are a few scenarios I thought of:

  • The seller gave the power of attorney while being under duress or was tricked by his brother. If the seller realizes that he was duped, can he somehow invalidate the transaction after the house was sold?
  • The seller is in really bad health and dies before the closing date. Does it change anything from the buyer's perspective?
  • The power of attorney is legit but the seller did not get the money that his brother received for the sale. Can the seller go after the buyer?
  • The seller (via his brother) promises to remove the current tenants before the closing date. This is the part of the sales contract. However, the tenants are sill in the house after the closing. Who is responsible for removing them in this case, considering that they have no lease and don't pay rent being relatives of the seller? Does the buyer have to evict them as if they were real tenants?

I plan to use the same listing agent to represent me as well as the seller. Does it change anything?

Thanks
Nick

0Reply
41 views

7 Replies

Jump to latestLatest
  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y

    Power of attorney to represent the seller is common. The seller's lawyer deals with that end of things. You don't have to worry about it. If the seller is in a nursing home, they would need someone to deal with their finances.

    you would be able to confirm that the other family members are out at the time of the walkthrough before the closing. Don't close without them being gone.

    Don't use the listing agent to represent you. Their duty is to the seller and not you.

  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Nick B.   It is simple.  Go to a title company.  Buy Title Insurance and let them worry about it.

    As I have said before, I do not always buy title insurance.  In this case I absolutely would.

  • Investor · North Richland Hills, TX · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    @Account Closed, the reason I prefer to use seller's agent is to give then an extra incentive to take my offer over someone else. The seller's agent will get double commission if he represents both parties.

    Thank you

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    POAs are not filed with the County Registrar as are Title docs &liens. They are effective upon presentation, WHEN properly notarized. Seek legal counsel to review the powers enabled by you POA.

  • Investor · North Richland Hills, TX · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    I've seen quite a few POAs while searching for deeds and other documents on the county website. I guess POAs (or at least some of them) are public records in Texas. But, yes, I may have to get a lawyer involved.

  • Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes
    9y

    Power of Attorneys for ailing old people can get extremely complicated, and the entire transfer could be voided by a strong Elder Law attorney if the old person decides to renege and uses then existing mental condition to challenge the transfer. Consult your own local attorney. 

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y

    I get your point, @Nick B.

    The listing agent doesn't decide which offer to take, all offers have to be presented. The owner, in the case the brother, will decide based on who presents the best offer, not which one will get give the listing agent more commission. Do agents like to double end their deals? Of course, but they aren't going to push a lower offer just because they'll potentially earn more commission.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.