A Power of Attorney (“POA”) is a legal document that any adult (a “grantor”), with capacity to so, can sign to authorize one or more persons to manage their administrative, financial and property matters while the grantor is alive.  Depending on the type of POA, it can be used while the grantor is just away overseas on holiday or if the grantor is incapable of managing their affairs as confirmed by a medical professional.  Who a person choses to be their Attorney is very important and many people will choose their spouse, with an alternate being an of age child, sister or brother (in the event the primary Attorney is unable to act).  The grantor should choose someone they trust can jump in to manage their affairs when the grantor is unable to. 

Your POA allows your Attorney to do almost anything when it comes to your finances and property, subject to the limitations of the POA and the law (an example being that an Attorney cannot change or arrange for a grantor’s will).  For example, if the grantor is out of town and is selling property, the Attorney can step in and sign the Contract of Purchase and Sale and execute the sale documents prior to completion on the grantor’s behalf, provided the POA is registered in the Land Title Office (for closing documents).  The POA will need to be fully signed by the grantor and the appointed Attorney(s) prior to entering into any contracts or signing any sale documents. As well, it should be reviewed to ensure it allows for the powers the Attorney needs in a particular instance and isn’t subject to any limitations that would cause an issue.  Once signed, the POA will need to be registered with the Land Title Office in B.C.  To be able to register the POA, the lawyer or notary will require the originally signed POA along with a declaration stating that the Attorney was, at the time of the appointment as an Attorney, 19 years or older. 

The Land Title Office has specific requirements that the POA must meet to be successfully registered and used on a real estate transaction to sign registrable documents, including the following:

1.     The name of the grantor on the POA and the name of the grantor on title of the property being dealt with must match exactly (in some cases, a declaration can be used to link names);

2.     The POA cannot have alternate names for an attorney, ex: also know as…;

3.     The POA must authorize the use for the Attorney to execute the documents being signed;

4.     Private information such as passport numbers or driver’s licenses must not be listed in the POA documents; and

5.     If the POA includes a triggering event that authorizes the use of the POA, evidence of that occurrence must be provided; and

6.     A declaration confirming proof of age of the Attorney at the time of the grant of the POA must be provided.

The POA registration with the Land Title office can take a few days or weeks to be finalized. This timing should be kept in mind when planning out the timing of completion on the sale property as this should be finalized before the completion date. The earlier the lawyer/notary involved can get all necessary documents, the better!

Getting a POA as part of estate planning is a great way to ensure affairs will be managed properly when an adult is unable to do so themselves.

Author: Jane Otterstrom 

This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area wills and estates at the following:

Jane Otterstrom: jane@touchstone.law