POA and contract for deed

Get Legal Help Today

 Secured with SHA-256 Encryption

POA and contract for deed

If I am purchasing my parents land on contract for deed, they live in an assisted living, should I be the Power of Attorney for them?

Asked on May 2, 2018 under Real Estate Law, South Dakota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Probably not. While there is no out-and-out legal bar on you being the agent or attorney-in-fact (those are the terms for the person given power by a POA), if you are the agent, you have a "fiduciary" duty to be fully fair and loyal to the principal(s): the person(s) giving you the POA. That would include a duty to maximize the return on investment--i.e. what they get for their property. That of course conflicts with your own self-interest; but agents are supposed to put their principal's interest ahead of their own. Being the agent when you are also the buyer therefore has a built-in conflict of interest which could, if there is a family falling out or second thoughs on your parents' part, lead to liabiity for "breach of fiduciary duty" for you. Let someone else be designated agent or attorney-in-fact for this sale, even if you are for all other purposes.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption