Control Big Risks of Real Estate Investment in Istanbul
The Power of Attorney in Real Estate Investment: Know What You’re Signing For
Investing in a foreign country’s real estate market can be a complex endeavor, replete with legal formalities and intricate procedures. One common practice is giving Power of Attorney (POA) to a local lawyer to act on your behalf. While this can ease the process, it also comes with significant risks if not executed cautiously. Here’s what you need to know about the POA and why blindly entrusting your lawyer might not be the best idea.
What is Power of Attorney?
Power of Attorney is a legal document that grants one individual the authority to act on behalf of another. In real estate transactions, a POA can enable your lawyer to sign contracts, make payments, and take various actions without your direct involvement.
You may reach more information from official website of Turkish Notary Association.
Types of POA
General POA: Grants broad powers, including buying, selling, and managing properties.
Limited POA: Specific tasks are assigned, for limited period of a time, such as only signing the sale deed.
The Dangers of a Misused POA
Case Study: A Cautionary Tale from Estates Istanbul’s Law Department
Recently, an investor faced a dilemma after providing a ‘General’ POA to her lawyer. She had purchased a property that was initially a residential project. Without her explicit permission, her lawyer approved a significant change—to convert the property into a hotel concept. The investor was caught off guard and faced complications she had never anticipated.
Risks Involved
Loss of Control: By giving a general POA, you are virtually relinquishing control over your investment.
Legal Complexity: A lawyer acting beyond or against your interests can lead to complex legal battles that drain time and resources.
Financial Consequences: You might find yourself stuck with a deal that is not as financially favorable as initially thought.
Safeguarding Your Interests
Be Specific: Clearly outline the tasks your lawyer is authorized to perform. Opt for a ‘Limited POA’ whenever possible.
Regular Updates: Insist on being informed and giving explicit approval for any major decisions, particularly those affecting the nature of your investment.
Legal Advice: Consult multiple sources for legal advice. Do not put all your trust in a single individual.
Review & Revoke: Always remember, you have the right to review and revoke your POA if you believe it’s being misused.
A Lawyer is Not a Panacea
Working with a lawyer can undoubtedly ease many complexities associated with real estate investment in a foreign country. However, it’s not a blanket solution for all problems. As an investor, you have the ultimate responsibility to understand the extent of the powers you are granting with a POA.
Remember, knowledge is power, but a Power of Attorney can be even more powerful. Use it wisely and please get rid off unnecessary Risks of Real Estate Investment in Istanbul.
Estates Istanbul here our motto is Our Knowledge & Your Choice, stay with u
s for a smooth way of reaching your property in city of dreams Istanbul Please Check our article about how the contract should be with the developer.
