Power of Attorney

In the UK property market, a power of attorney (POA) is a legal document that grants one person (the attorney) the authority to act on behalf of another person (the donor) in matters related to property and financial affairs. This can include buying, selling, managing, or mortgaging property. The use of a POA is particularly relevant when the donor is unable to manage their own affairs due to illness, absence, or incapacity.

There are different types of power of attorney, but the most commonly used in property transactions are the Ordinary Power of Attorney and the Lasting Power of Attorney (LPA). An Ordinary Power of Attorney is usually temporary and is only valid while the donor has mental capacity. In contrast, a Lasting Power of Attorney can continue to be used if the donor loses mental capacity and is often set up in advance for long-term planning.

For property transactions, a POA must be registered with the Office of the Public Guardian if it’s a Lasting Power of Attorney. Using a POA can simplify the process of managing property affairs, ensuring that the donor's interests are protected even if they cannot act on their own behalf.

A power of attorney is a valuable tool in the UK property market, providing flexibility and security when managing property transactions on behalf of someone else. Whether due to absence, illness, or incapacity, having a POA in place ensures that property and financial affairs are handled according to the donor's wishes. Understanding the different types of POAs and how they function is crucial for anyone involved in property transactions where a POA might be necessary.