What is the process for buying property through a power of attorney holder?

Buying property through a Power of Attorney (POA) holder means the transaction is executed by a person legally authorised by the actual owner rather than the owner directly. The buyer must verify that the POA is valid, registered, and grants the specific authority to sell the property in question. This distinction matters for both first-time buyers and experienced investors, since the right approach can significantly affect cost, timeline, and overall outcome.

Key Steps in the Process

• Obtain a certified copy of the registered POA and confirm it is not revoked or expired.
• Verify the POA is executed by the same person named as the owner in the title documents.
• Check whether the POA is a General POA or Special POA, since a Special POA limited to the specific sale transaction offers stronger legal footing.
• Confirm the principal (original owner) is alive and mentally competent, as POA becomes void on death.
• Insist on direct confirmation from the owner, via a phone call or video verification, before finalising payment.
• Staying updated on evolving market trends and regulations ensures decisions remain relevant and well-informed over time.

Risks to Watch For

• Fraudulent or backdated POA documents used to sell property without the owner's knowledge.
• Banks are often reluctant to sanction home loans for POA-based sales, since courts have flagged such sales in title disputes.
• Many states advise executing the sale deed directly with the owner rather than relying solely on POA to reduce future litigation risk.
• Timelines and requirements can vary by city or region, so verifying current local rules before proceeding is strongly recommended.

Buying property through a POA holder is legally permitted but carries elevated risk if the document is not properly verified. A thorough legal check, direct confirmation with the owner, and registration compliance help protect the buyer's interest in such transactions. As with most real estate decisions, consulting a qualified professional familiar with local regulations and current market conditions is recommended before moving forward.