REAL ESTATE : What’s power of attorney?

If it is not you, it is your friend or at your company that have used a power of attorney. It is often convenient or even necessary to have someone else act on your behalf.

A power of attorney gives someone the legal authority to act for you and that will mean you are the principal and the person, who acts for you is called the agent.

The power of attorney in Tanzania is used a lot, when it comes to purchases of land. When you are out of the country and can’t do the process yourself, or are unable to for some reasons, you can give the power to a person to execute it on your behalf.

Mostly the power of attorney should give only those powers you want to give like sell a property or look for a buyer, but not sell or buy properties for you. The powers given may be very limited or very broad. Many things that people do may be done through agents. You may authorise an agent to:

- buy or sell things for you;

- apply for public benefits manage your business;

- collect your debts;

- invest your money;

- cash your checks;

- manage your financial matters generally or

- sue on your behalf in land matters.

You must specify in the power of attorney document what powers you are giving to your agent and when those powers are to take effect.

It good to note that broad language giving an agent “all powers” to, for example, deal with your property may be enough for many purposes. But some powers are given only if they are specifically mentioned. Those requiring specific mention include:

- the power to make gifts of your money or other property;

- the power to change your community property agreement; and some powers cannot be given to an agent. Those include:

- the power to vote in public elections and

- the power to make or alter a will.

On the other hand, giving an agent broad powers to make gifts of you property may result in serious problems if the agent turns out to be untrustworthy or unwise. You should speak with a lawyer if you have questions about these issues.

Also you should be aware that a power of attorney can be written to take effect immediately upon signing or to take effect at some time in the future at a date or occurrence of some event.

However, a good point to note is that your power of attorney ends when you die. This is not a substitute for a will. So, when you write one relating to your properties it is good to consider this.

A power of attorney at times needs to be notorised and recorded.

Power of attorney registrations falls under the Registration of Documents Act (Cap 117 RE 2002). If you want to give an agent the power to sell land or transfer or encumber a title to land in some other way, the power of attorney must be signed in front of a notary, who must note that you signed it voluntarily for the purposes mentioned in it.

A power of attorney can have the following language in bold type at the top of the first page:

This power of attorney authorises the person named below as my attorney to do one or more of the following: To tell, lease, grant, encumber, release or otherwise convey any interest in my real property and execute deeds and all other instruments on my behalf, unless this power of attorney is otherwise limited herein to specific real property.

If you are using the power of attorney for a real estate transaction, it must be recorded in the office of the registrar of documents before or at the same time as the deed to the property being bought or sold. A copy of the power of attorney will be made for the public record and the original will be returned to the person submitting it.

If no land is going to be dealt with, it is not legally necessary to sign a power of attorney in front of a notary or to have it recorded, but notarisation may still be wise. Some institutions or individuals may doubt the validity of a power of attorney that has not been notarised and may refuse to honor it.

A power of attorney can also be stopped this is called revoking the power of attorney. To revoke a power of attorney, you should give a signed written notice to the agent and, if possible, to anyone who has been relying on the power of attorney.