When a real estate transaction is contemplated using a power of attorney, there should be a presumption that fraud is likely. At the first suggestion of the existence or requirement for a power of attorney, the client must be put on notice and the transaction ceases to be a typical conveyance. That is not to say that all transactions involving powers of attorney are fraudulent or grounds for rescinding the agreement of purchase and sale, but the parties involved and their solicitors should proceed knowing that additional scrutiny of the transaction and its parties are required.
Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.
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Bennett Jones