Do You Need Power of Attorney for Peterborough Real Estate?

Power of Attorney and real estate are two completely different concepts, but they do intersect in many ways. This may also seem to be a bit of a dry subject. For many people, it’s not nearly as much fun as hunting for a house and imagining how you will decorate. However, it becomes an inescapable fact of life for some of us as our loved ones start to age.

First things first, we are real estate agents, not lawyers, so we are not able to provide legal advice. With that disclaimer out of the way, we can explore when and why you might need Power of Attorney when it comes to helping – or getting help from someone you love to buy or sell a house in Peterborough.

What Does Power of Attorney Mean?

As adults, we often pride ourselves on our ability and determination to make decisions. Having someone else decide on healthcare or manage our financial portfolio might seem unthinkable right now. That said, life is unpredictable. Illness can set in, accidents can happen, and time stands still for none of us.

If the unthinkable does occur, who do you want to make life-altering decisions on your behalf? If you don’t appoint someone you trust while you are capable, the courts will end up deciding who is in charge of your affairs. Since no one wants that, it’s a good idea to at least start thinking about what you will do.

Power of Attorney (POA) is a document that allows you, the grantor, to appoint someone to make these critical decisions. There are two types of POA in Ontario:

1. Power of Attorney for Personal Care: You may have joked about treating the kids right since they’d be choosing your nursing home eventually. This designation makes it a reality by allowing a loved one to make personal decisions about your care.
2. Power of Attorney for Property: You’ve granted authority for someone to make decisions about your finances, which includes managing your bank accounts and investments. It may even mean buying or selling real estate in Peterborough.

POA isn’t just about having someone take care of things when you are incapacitated. It’s also a tool you can use if you’re away on an extended trip or simply feel these decisions are better in someone else’s hands.

In either case, assigning a POA requires a deep sense of responsibility and trust. Needless to say, it’s important to think long and hard and make your decision carefully.

Looking for more resources to navigate a real estate transaction for someone else? The posts below might help:

• Can You Sell Your Peterborough Home Remotely?
• What Are the Best Practices When Handling an Estate Sale?
• What Are the Implications of Selling an Inherited Home?

FAQ Regarding POA

Granting a POA might feel like signing your life away, which can be a scary prospect no matter how much you trust the other person. At this point (or long before this point), you likely have several questions burning at the back of your mind.

Will I lose all control over my life?

Understandably, this is a big concern for many people considering a POA. Again, we are not lawyers, but no. You still maintain your rights and autonomy. However, it is critical to express your wishes in writing while you remain of sound mind.

Can my POA betray me and sell my house out from underneath me?

This is another big fear that people may have. POA for Property especially gives sweeping authority to sign documents, make investments, and yes, sell your house – unless you restrict their powers. The system is far from perfect, but there are laws in place to protect you from malicious intent.

To start with, a POA can make decisions, but they don’t become owners of your property and they cannot transfer your money into their account. Even if they could sell the house without your permission, they can’t take the funds from the sale (unless they want to experience some jail time or a very nasty lawsuit). In addition, you can ask for a full report on their activities whenever you choose.

Furthermore, your POA is legally bound under fiduciary duty, which means they are compelled to act in your best interest at all times. That’s not to say that bad-faith players don’t try to take advantage of the system, but it is rare.

A more likely scenario is that the person you choose might simply not be capable of managing your affairs. These are just a few more reasons you should make this decision carefully and only after a deep, heart-to-heart conversation. Being crystal clear about your wishes will help to ensure nothing happens that you wouldn’t have chosen for yourself.

Can I revoke POA Authority?

Absolutely. There are no special forms to fill out. You’ll need to revoke the document in writing and have two witnesses sign it. In addition, you’ll want to let your financial institutions know that your POA is no longer authorized to act on your behalf.

You can get more information about POA from the Ontario website. Even better, you might want to talk to an experienced lawyer before making any final decisions.

Power of Attorney and estate sales aren’t the only challenges homeowners can face. Learn how to handle almost anything Peterborough real estate throws at you in the posts below:

• What If Your House Has a Stigma?
• How To Make Selling a Home Easier During a Divorce
• How Do Interest Rates Impact Buying Real Estate?

Do You Need Power of Attorney to Buy or Sell a House

Imagine that you’ve decided you’ve had enough of living in a large family home and want to move somewhere smaller and more convenient. You have your work cut out for you since two transactions are involved: selling your existing home and purchasing your next.

Whether you need a POA depends on how involved you want to be in the process. If you’re the one who will be making the final decisions and signing all the contracts, you probably don’t need someone to act in your place. Any family member or friend can help coordinate with professional cleaners, contractors, and moving services.

If you want to wash your hands of the whole process, spend the next few months overseas, and come home to everything being finished, then you will need a POA. The scope of your involvement might fall somewhere in between.

Nevertheless, it doesn’t hurt to talk about the possibilities with a legal expert who can guide you toward the best path. If you need a recommendation for an experienced lawyer, your Peterborough real estate agent can help!

Do you have questions about how Power of Attorney or Estate sales work in Peterborough? We are happy to offer some guidance. Reach out to team@jeffandkatie.ca or give us a call at 705-243-9797 for more information.