In most cases, a Power of Attorney for Property does not live in the home being sold and knows little of nothing about it.
So some protections need to be inserted in an Agreement of Purchase and Sale. Here is an example.
A close relative, Mrs. Stern, has just appointed you as Power of Attorney for Property. She is an elderly lady who can no longer manage her affairs, is not capable of making decisions and has been placed in a home. Her residence is, therefore, vacant.
Your Power of Attorney for Property places you in the responsible position of having to sell Mrs. Stern’s home.
In a case like this, similar to an estate sale, and in the interests of full disclosure, here are some recommendations we believe would be helpful in the home’s sale:
1. Have your REALTOR® prepare an addendum to the agreement and make it available to all Buyers and their representatives. This can be attached to the MLS listing and its availability noted in the listing remarks. It can also be made available at the home.
2. State in the Addendum that as Power of Attorney and because you have never lived in the home, you have limited knowledge about the property.
3. State further that the Buyer, therefore, acknowledges that the Power of Attorney makes no representations and/or warranties with respect to the state of repair of the premises, the state of repair of any fixtures or appliances and any chattels that may be included or on the property at time of closing.
4. Include that the seller has obtained a home inspection report for the buyer’s review.
5. Have the Buyer acknowledge that they have reviewed the seller’s home inspection report, available at the site, during an inspection of the property by the buyer and prior to submitting an offer.
6. As the report was obtained by the Seller for the purpose of uncovering and disclosing any deficiencies, have the Buyer accept that the Seller makes no representations or warranties regarding the report or its contents, and that any reliance on the report by the Buyer shall be at the Buyer’s risk.
7. State that the Buyer understands that they have the option to obtain their own home inspection by way of a condition to this agreement.
8. Lastly, if you are aware of any issues requiring disclosure, place these in the addendum as well.
Putting Your Best Foot is Your Best Approach
The more you can assist the Buyer in knowing about the property, the greater the chances of a Buyer being attracted to the property. They understand that there has been a good faith effort to disclose deficiencies. As well, they can include any number of conditions in the offer to satisfy themselves of any concerns.