Buying an apartment by power of attorney
Situations when real estate is sold not by the owner, but by his or her representative using a power of attorney are not uncommon. If you are planning to buy a home, you can take such offers into account. But it is important to understand that such a transaction will carry more risks. We'll tell you what to look for and how to mitigate the risks below.
What is a power of attorney for the sale of an apartment
A power of attorney for the sale of an apartment is a notarized document by which the owner of an apartment transfers all the necessary competencies to his or her representative to conduct the sale of the apartment.
Under the power of attorney, the representative has the right to collect various certificates, sign the purchase and sale agreement, receive money from the buyer to a bank account, and deregister the apartment owner. The power of attorney is valid for the period specified in the document itself.
An apartment can be sold under a general power of attorney for various reasons. The owner of the property may be very busy, live in another country or in another city of Ukraine, be in a war zone, or not be able to deal with the transaction on his own for another reason.
Is it possible to buy an apartment by power of attorney
Buying an apartment by power of attorney is a legal procedure if all the formalities are met. It is quite possible to buy real estate through an authorized representative, but it is important to understand that it is not always safe.
At the initial stage, there are several factors that should alert the buyer. If such an apartment is sold by proxy, it is better to refuse the deal. What situations are we talking about?
Low cost of housing - with the help of an attractive price, fraudsters may try to lull the buyer's vigilance and conclude a deal as soon as possible;
Urgent sale of an apartment - if the owner's representative hurries the buyer and does not agree to give some time to think, you need to check the documents more carefully or refuse the deal altogether.
What are the risks of buying an apartment by power of attorney
Selling residential real estate by power of attorney is one of the most common fraud schemes. Before such a transaction, you need to check all the documents much more carefully than if you work directly with the seller.
What are the risks of buying a home by power of attorney?
It's almost impossible to know what state of mind the apartment owner was in at the time of issuing the general power of attorney. The owner could have signed the document under the influence of alcohol or drugs, not realizing the consequences of their actions. If this is confirmed, the power of attorney becomes null and void.
The owner could also have signed the power of attorney under duress, as a result of blackmail or fraud, or under the influence of difficult life circumstances. If this is revealed, the document will also be considered invalid.
Fraudsters could issue a power of attorney using a stolen passport with the help of a person who looks like the real owner, and the notary might not even notice.
The notary may not notice and issue a power of attorney using the stolen passport of the real estate owner, in which another photo has been pasted.
The power of attorney may be issued by a "gray" notary who was in cahoots with fraudsters.
The owner of an apartment may die the day before the sale and purchase transaction. The buyer will not know about this, and the heirs have the right to challenge the transaction if they did not issue a power of attorney.
It is impossible to completely eliminate all risks when buying an apartment by power of attorney. The buyer can only make every effort to minimize these risks.
How to safely buy an apartment by power of attorney
There are several recommendations that will help reduce risks and safely buy real estate by power of attorney. If you do not follow them, the likelihood of falling into the hands of fraudsters will be really high.
Checking the power of attorney
The buyer should read the power of attorney carefully. The document is drawn up on a special form and certified by a notary. The power of attorney must contain the following information:
Full name of the principal and attorney-in-fact;
address of residence of the seller and the representative;
address of the apartment to be sold;
powers and rights of the authorized representative;
place of conclusion of the transaction;
validity period of the power of attorney;
recommendations on how to dispose of the funds received.
It is important to make sure that the powers of the owner's representative include the right to sell the property.
Visit to the notary
Before entering into a transaction, you need to visit the notary who certified the power of attorney and find out whether it is valid. This is important because the principal may terminate the power of attorney at any time without notifying the attorney-in-fact. It is also worth asking what documents were used to confirm the seller's legal capacity.
Checking the owner of the apartment
This is one of the most difficult and important stages of verification when buying an apartment by power of attorney. The power of attorney loses its legal force if the owner dies, is declared incapacitated, goes missing, signs the document under duress or as a result of fraud, etc. This is what you should try to check.
What the buyer needs to do:
Ask the representative why the owner cannot personally attend the transaction and who they are related to each other. If the authorized representative is a relative, you can ask to see the relevant documents. If it's a stranger, this should be a red flag. It is rare that a non-relative is trusted to receive a large sum of money.
Find out the family composition of the apartment owner. You also need to ask about the marriage - is it registered or civil? If there is a spouse, the package of documents must include his or her written consent.
Ask about the age and health of the owner. If you can't see the seller in person, it will be difficult to understand whether he or she is in an adequate and capable state or not. If the owner is mentally ill or very old, he or she may not be aware of his or her actions. In this case, the document loses its force.
Meet your neighbors. This is a good way to learn more about the owner of the apartment. The concierge, neighbors, the head of the condominium association, and even the old ladies at the door can tell you a lot about the owner, especially if they have lived in the apartment for a long time. In this way, you can find out whether the principal used alcohol or drugs, whether he or she is mentally healthy or not, what is the family composition and social status, what is the reason for the seller's long absence, and much more.
If there is a discrepancy in the information, it is better not to take any risks and refuse the transaction.
Compliance with formalities
Excessive gullibility when buying an apartment by power of attorney is a serious risk of falling into the hands of fraudsters and losing your apartment and a large sum of money. You shouldn't rely on trust in a blind desire to conclude a seemingly favorable deal as soon as possible.
In such cases, it is important to think and analyze soberly. Through a notary or on your own, you need to check the title documents, carefully examine the apartment for sale, interview neighbors, and study the history of the property (whether there have been any sales transactions in the last few years). If the transaction is delayed, you can sign a preliminary agreement to confirm your seriousness.
Consulting a notary, thoroughly checking the documents and verifying the owner of the apartment reduce the risks of buying real estate by proxy.
Buying an apartment through a real estate agency
Buying a home through a proxy from the seller is a special story, so it is difficult to do without the help of specialists. Mayak real estate agency employs qualified realtors, as well as a legal department and a notary. Lawyers will help you thoroughly check the documents of the seller and his representative to minimize the risks of buying a home by proxy. If something turns out to be suspicious, experts will advise you to withdraw from the transaction.
The notary will check the power of attorney using the Unified Register of Powers of Attorney. The notary will also certify the sale and purchase agreement if the seller's representative has doubts.
When buying an apartment by power of attorney, it is important to conduct a comprehensive analysis of the situation. It is difficult to understand all the nuances without lawyers and a notary. To conclude a transaction legally, save money and nerves, it is better to immediately contact the professionals of the Mayak real estate agency.
