Power of Attorney for Alberta Real Estate: What You Need To Know

 In Calgary Real Estate News, Tips & Tricks

As the ageing population grows, some individuals may find themselves having a power of attorney for a loved one. A Power of attorney authorizes someone to sign on your behalf in specific situations.

 

Specific to Calgary real estate, there are two common kinds of power of attorney’s:

  1. When you physically cannot sign the documents because you are out of town
  2. When you lose mental capacity (called an enduring power of attorney)

 

An enduring power of attorney authorizes someone to sign documents for you only if you cannot make legal decisions for yourself after you lose capacity.

 

There are a few considerations to keep in mind when it comes to real estate. As a real estate professional, we must see a copy of the power of attorney to confirm a few things:

 

  • Ensure the power of attorney is in effect
  • Does the power of attorney give the right to deal with real estate?
  • If it is an enduring power of attorney and the person has lost capacity, is there written confirmation from a doctor?

 

Other considerations are:

 

  • Some lenders/banks/mortgage companies will not allow a power of attorney to be used
  • The Alberta Land Titles office requires original copies (and will keep 1 copy) of the power of attorney
  • Issues can arise when Dower rights are involved and signing with a power of attorney

 

The best way to ensure a smooth transaction is letting your real estate professional, mortgage broker, and lawyer know about the power of attorney by providing a copy to them from the very beginning. A power of attorney does add an extra hoop to jump through in a real estate transaction, but with the proper communication and planning there is no reason why we cannot resolve the issue.

 

If you have questions or would like to discuss any potential issues surrounding power of attorneys, please contact me at FelixChan@LiveInnerCity.com or 403.460.4838 and I will connect you with my lawyers in Calgary.

 

  • Felix Chan
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