Questions & Answers
Precautions while signing a property purchase MOU via POA and giving cheque
I am going to buy a property through an agent in a registered company.
Just before signing an MOU and giving a 10% cheque, we came to know that the owner is not here and the stated name in the MOU is the holder of POA (power of attorney).
What should I do in this situation? With whom to sign the MOU and under whose name is the cheque to be given?
They put the name of the POA holder but the title deed has the name of the owner.
Should we ask for POA and get it verified? How to verify it?
Hello,
As per your query please note that you need to verify the POA and it is preferred if you can contact the owner of the property, for verification and other inquiry purposes.
Please call or e-mail us.
Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of law.
An agent, in fact, is a person authorized or empowered by another (the principal) to bring the principal into legal relations with a third party.
Most commonly, his task is to bring about a contract between his principal and a third party.
In order to know if the agent has actual, apparent or ostensible authority and as you mentioned (verify the POA), it is better to seek legal help before signing the cheques.
You can call us on the phone.
You need to review the POA and ensure that person is authorized to sign on behalf of the owner.
Then you can sign the MoU with him, but the cheques should be issued under the owner's name to the agent.
