Mistakes

How Not Confirming Power of Attorney Kills Deals

A deal dies quickly if the person you are negotiating with lacks the legal authority to sell the property. Always confirm that anyone acting on behalf of an owner has a valid and current Power of Attorney.

November 8, 2026 · 3 min read

The trap of assuming authority

You speak with a seller, he or she seems motivated, you negotiate a price, and you send a contract. Then, you find out the person you were talking to is a child of the owner, or a friend, and does not actually have the legal right to sell. This is a common and frustrating way for deals to die.

Wasting time and resources on a party without authority is a preventable mistake. It is crucial to verify who you are dealing with early in the process. Never assume someone has the right to sign for someone else.

Asking the critical question early

On your very first call, if the person on the phone is not the owner on record, you must ask about his or her authority. A direct question like, "Are you the owner of record for the property at [address]?" is essential.

If he or she says no, immediately follow up with, "Are you acting on behalf of the owner with a Power of Attorney or other legal documentation?" This sets the expectation that you need proof of his or her legal capacity to sell.

What a valid Power of Attorney looks like

A Power of Attorney (POA) is a legal document that grants one person (the agent or attorney-in-fact) the authority to act on behalf of another (the principal) in specific matters. For real estate, it must be a 'durable' or 'specific' POA that explicitly grants the power to sell, lease, or transfer real property.

The POA must be signed by the principal, often notarized, and sometimes recorded with the county recorder's office. A general POA might not be sufficient for a real estate transaction. It is not legal advice, but your title company will always scrutinize this document.

The habit that prevents this mistake

Make it a habit to confirm legal authority on every single call where the person you are speaking with is not the sole owner of record. This means asking about spouses, heirs, or anyone else involved in the decision-making process. Even if the owner is on the phone, ask about other owners or decision-makers.

Add a checkbox to your CRM or lead sheet: 'Legal Authority Confirmed? Yes/No.' If it's 'No,' stop the process until you get satisfactory answers. This simple step saves you from wasted time, effort, and potential legal headaches.

When a spouse or heir is involved

If a property has multiple owners, such as a married couple or multiple heirs, all owners generally need to sign the purchase agreement and deed. Even if one spouse is handling all the communication, always confirm the involvement and agreement of the other spouse.

For inherited properties, understanding if probate is complete and who the legal heirs are is crucial. An heir may not have the individual authority to sell the entire property without the consent of all other heirs or a court order. Again, your title company will need to verify this.

Involving your title company early

Your title company is your best friend in verifying legal authority. As soon as you have a verbal agreement, or even earlier if there are questions, provide your title company with the contact information for the person claiming authority. Ask them to verify the Power of Attorney or heirship documentation.

They will review the documents and advise you on their validity and sufficiency for closing. This is not legal advice, but it is a critical part of his or her job. Catching this issue early can save you weeks or months of chasing a dead deal.

Questions people ask

What happens if I sign a contract with someone who does not have a Power of Attorney?

If you sign a contract with someone who lacks legal authority, the contract is likely unenforceable. This means you have wasted your time and cannot legally compel the actual owner to sell.

Can a verbal agreement of authority be sufficient?

No, a verbal agreement is never sufficient for real estate transactions. Legal authority, like a Power of Attorney, must always be in writing and verifiable by a title company or attorney.

What if the seller says the Power of Attorney is 'being drafted'?

Do not proceed with a contract until a fully executed and legally valid Power of Attorney is in hand. You can continue discussions, but do not commit resources or sign anything until the documentation is ready.