Real Estate Fraud and Powers of Attorney

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.