| There are times when the Seller or Buyer to a | | | | another entity. In this case the beneficial owner |
| real estate transaction may appoint someone to | | | | (the person for whom the property is being held |
| act on their respective behalf and even to sign | | | | in trust) may sign the contract.If the contract is |
| agreements relating to the Contract of Purchase | | | | signed by the beneficial owner, there will usually |
| and Sale as their agents, thereby meeting the | | | | be a recognition of the trust in the contract {for |
| requirements at law that all dealings involving land | | | | example, John Doe in trust for Mary Black). As |
| or interests in land be in writing. However, it is | | | | well, there will be normally a covenant by the |
| always mandatory (in British Columbia) that the | | | | Buyer to accept a transfer from the registered |
| agent obtain specific instructions prior to signing | | | | owner and not the beneficial owner who signs the |
| any documents on behalf of the parties to a | | | | contract. This covenant acts as a waiver of |
| transaction. This is all the more true when a | | | | section 6 of the Property Law Act (in British |
| Realtor is authorized to sign on behalf of one of | | | | Columbia), which provides that the person who |
| the parties.The written authorization must set out | | | | signs the contract as Seller is the person who |
| the exact terms, conditions and scope under | | | | must sign the transfer. There may be warranties |
| which the agent is authorized to sign. A telegram, | | | | or representations of the beneficial owner, of the |
| letter or fax may be used for this purpose, but it | | | | registered owner, of both, or limited warranties |
| must be received by the agent before he/she | | | | and representations of each.In other |
| attempts to act on the Seller's or Buyer's behalf. | | | | circumstances the registered owner may wish to |
| Agents must avoid signing documents on behalf | | | | structure the transaction as a sale of shares |
| of anyone based on verbal, telephone or e-mail | | | | rather than a sale of real property. Such sale may |
| instructions. Furthermore, evidence of written | | | | involve the shares of the registered owner or the |
| authority granted by one party to a real estate | | | | shares of the beneficial owner of the interest in |
| transaction must be attached to any and all | | | | land.It is always advisable to deal with legal or |
| documents where the agent has signed on behalf | | | | beneficial owners after a thorough title search has |
| of the party.Powers Of AttorneyWhere it is | | | | been executed. For example, in a typical residential |
| desirable or necessary to rely on a Power of | | | | real estate transaction problems can arise when a |
| Attorney, it is widely recommended that it be | | | | Contract of Purchase and Sale is drafted with the |
| granted to someone in accordance with the | | | | Seller when, in fact, the property is legally owned |
| advices of a lawyer. When a person who has | | | | by some other person or company. In this |
| been granted a Power of Attorney signs a | | | | particular case the Seller may have to transfer |
| contract involving land or an interest in land on | | | | the subject property into his or her own name to |
| behalf of the person granting the Power of | | | | comply with section 6 of the Property Law Act |
| Attorney, the correct way for the contract to be | | | | (a costly transaction involving, among other things, |
| completed is as shown on the following | | | | payment of taxes), or face the possibility that the |
| example:"Mary Smith grants a Power of Attorney | | | | Buyer may legally refuse to complete the |
| to Ted Lee to enter into a contract for the sale | | | | transaction if presented with a transfer from the |
| of her property located at [address in full]".Ted | | | | Seller as shown on the contract, rather than the |
| Lee, then, would sign both the Listing Agreement | | | | registered owner as shown on title.Buying From |
| and the Contract of Purchase and Sale using the | | | | An EstateA Buyer purchasing from an estate |
| following statement:"Mary Smith, by her attorney | | | | must be assured that the title must pass to him |
| in fact" followed immediately by Ted Lee's | | | | or her without legal problems, and that all parties |
| signature.Furthermore, a transfer of title executed | | | | who can claim against the estate have had their |
| under a Power of Attorney to be filed at the | | | | opportunity to do so. If Letters Probate have |
| Land Title Office (in British Columbia) at the time | | | | been granted already and the Wills Variation Act |
| of completion requires the Power of Attorney to | | | | (in British Columbia) has been complied with, no |
| be drafted in proper form. This is so, because | | | | additional clause is required. If, however, these |
| different Power of Attorneys can be granted by | | | | steps have not been concluded a clause similar to |
| one person to another. While the form of such | | | | the one that follows should be incorporated into |
| authority may authorize a party to sign contracts | | | | the Contract of Purchase and Sale:"Subject to the |
| and certain other documents for another party, it | | | | Seller receiving the following by [date]:1) copy of |
| may not be sufficient for Land Title registration | | | | Letters Probate; and 2) assurance that everyone |
| purposes. Therefore, whenever a Power of | | | | entitled to claim under the Wills Variation Act has |
| Attorney is contemplated or utilized in a trade | | | | waived or released his or her claim against the |
| involving real estate, the parties ought to seek | | | | subject property". An example of a proper way |
| the advices of legal counsel as soon as possible to | | | | for an executor to sign a contract on behalf of |
| ensure the form of the Power of Attorney being | | | | the estate is:"John Smith, Executor for the estate |
| used is valid and is acceptable for registration. It | | | | of (name of the deceased).In some cases there |
| should be also noted that the Power of Attorney | | | | may be a delay in obtaining Letters Probate.Should |
| may expire after a specific time or be invalid for | | | | that occur, the Buyer may agree to an extension |
| other reasons. Therefore the advices of a legal | | | | to allow the Executor additional time to obtain the |
| practitioner specializing in real estate transactions | | | | Letters Probate.Luigi FrascatiLuigi Frascati is a Real |
| are always the best venue.Dealing With Legal Or | | | | Estate Agent based in Vancouver, British |
| Beneficial OwnersThe person or legal entity shown | | | | Columbia. He holds a Bachelor Degree in |
| as the registered owner of a real property on the | | | | Economics and maintains a weblog entitled the |
| Certificate of Title at the Land Title Office may | | | | Real Estate Chronicle where you can find the full |
| not be the person or entity that signs the | | | | collection of his articles on Real Estate Economics |
| Contract of Purchase and Sale as Seller of that | | | | and Finance. Luigi is associated with the Sutton |
| particular property. This is a relatively common | | | | Group, the largest real estate organization in |
| occurrence in the real estate trade. For a variety | | | | Canada, and is based with Sutton-Centre Realty in |
| of reasons one entity may appear as the | | | | Burnaby, BC.Luigi is very proud to be an |
| registered owner, while another entity may sign | | | | EzineArticles Platinum Expert Author. Your rating |
| the Contract of Purchase and Sale as the Seller. | | | | at the footer of this Article is very much |
| This may happen, for example, if the registered | | | | appreciated. Thank you. |
| owner holds the subject property in trust for | | | | |