Wholesaler/Realtor wants power of attorney to do deals

[Adam Demchik]

Hey BP...somewhat odd legal question: I met a realtor/wholesaler that wants me to give him power of attorney to put houses under contract. The purpose is to allow him to quickly get the house under contract and off the market. He then leaves a 10 day inspection period to allow me a way out of the contract. I have talked to his references and they all have done multiple houses with him, but my attorney is dead set against this. Any thoughts on this would help. Thanks.

[Bill Gulley]

No! This guy has some other angle obviously, his saying that a POA gives him the ability to put the property under contract quicker is pure BS! A ten day period is more BS, a POA can be terminated by the party granting it at any time but if he were to sign for you while the POA is in effect, you can't terminate his acts, termination must be accomplished prior to acts performed.

The only "quicker" part is the time to get a contract to you to sign an offer! If he has buyers, the only advantage they have is knowing it's a done deal before the ink is dry, but if there is some ten day rejection period, that slows down the transaction more than a straight listing.

This is a red flag!

Now, if you live out of town, there may be a justification for a POA, otherwise this is just not acceptable practice from a Realtor. I'm wondering if he really is a Realtor in good standing and needs the POA to conduct business (?)

The others that have done this with him may have no clue what else may have been done.

A POA usually states that the attorney-in-fact can do all things to facilitate a sale, that could open the door to act with another party to load fraudulent fees or charges, make repairs, collect rents to be conveyed.....whatever....

Based on his justification for the reason for a POA (being BS) that just isn't a matter in truth, I suggest you listen to your attorney.

Tell the guy your attorney will draft the POA and that both of you can go to his office to explain what you both want to do, you could take his POA as well. If he is agreeable, go see your attorney, he's probably on the up and up with some reason, if he's not willing to do that then obviously he has something to hide! :)