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Professional Standards Manual

Trading Services

4. General Information

(a) Contract Clauses - View Entire Section

(VII) Powers of Attorney

Where it is desirable or necessary to rely on a Power of Attorney, it is prudent practice for licensees to recommend that the Power of Attorney be granted to someone other than the licensee, preferably on their lawyer’s advice. When a person who has been granted a Power of Attorney signs a contract on behalf of the person granting the Power of Attorney, the correct way for the contract to be completed is as shown in this example:

‘‘Mary Smith grants a Power of Attorney to her friend Ted Lee to enter into contracts for the sale of her property.’’ Ted Lee would then sign both the Listing Contract and Contract of Purchase and Sale using the following statement: ‘‘Mary Smith by her attorney in fact, Ted Lee’’, followed immediately by Ted Lee’s signature.

**Alert**

A Form A transfer executed under a Power of Attorney, to be filed in the Land Title Office at the time of completion of a sale, requires a Power of Attorney to be in proper form. Licensees should note that different types of Powers of Attorney can be granted by one person to another. While the form of such authority may authorize a party to sign contracts and certain other documents for another party, it may not be sufficient for Land Title purposes. Whenever any Power of Attorney is contemplated or utilized in a trade in real estate, licensees should advise parties to seek the advice of their respective lawyers as soon as possible to ensure the form of Power of Attorney being used is valid and is acceptable for Land Title Office purposes. It should be noted that the Power of Attorney may expire after a specific time or be invalid for other reasons. Licensees should advise their clients to obtain legal advice before proceeding.