Are you an immigrant in Canada and do not have an attorney-in-fact to represent your assets in the event of your death or absence? How much time and effort has it cost you to buy your home or set up your office? It may be a lot!

Acquiring real estate in this country requires work, sacrifice and money, and this dream come true deserves protection. Unfortunately, many people fall into legal disputes or conflicts because they have not foreseen the protection of their material possessions, sometimes due to lack of guidance or inheritance knowledge. 

So today, in our estate planning blog, I will give details of the Power of Attorney for Property, a legal "power of attorney" or "mandate" document for real estate that foreigners with tangible property in Canada should be aware of. Here you will learn from its definition to its importance and value in safeguarding your assets and the future of your loved ones. Let's get started.

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What is a power of attorney for real estate and why is it recommended in Canada?

The power of attorney for real estate is a legal instrument of great importance that allows a person, named "principal", to appoint another person, called "attorney-in-fact" or "agent", to act on his or her behalf in matters related to his or her real estate.

You are, of course, the one who gives instructions about your bank accounts, investments, property and other financial assets in Canada, but in case of death or absence, your legal attorney-in-fact would be. Foreigners who have managed to invest in property, family housing, businesses, or who have purchased land, etc., must secure their assets with a designated person of their trust by means of a power of attorney for real estate.

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How much is a power of attorney worth?

The value of a power of attorney for real estate does not lie in its monetary price, which is quite affordable, but in the safeguard it confers to a tangible patrimony built with effort, work and tenacity. In Canada, the economic price may vary depending on the province. If you want to know the costs in Ontario, click here.

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How does a power of attorney for real estate work?

Remember that Canada is very large, with 10 provinces and 3 territories, and each has its own provincial laws, so before you sign it, you need to know how the power of attorney for your assets will work in your respective province. 

Please note that this is a legally binding document and gives the attorney-in-fact the authority to perform a wide range of actions related to your real estate. These actions may include:

• Manage your properties: your attorney-in-fact can collect rent from your properties, pay bills related to your properties, perform repairs and maintenance of your home, office, grounds, etc., as well as handle any other matters related to the management of your assets.
• Buying and selling property: your attorney-in-fact can buy and sell property on your behalf, as long as you, who would be the principal, specifically grant him or her this authority within the power of attorney.
• Negotiate contracts: can also negotiate and sign contracts on your behalf related to the purchase, sale or lease of your properties, as well as other real estate matters.
• Represent the principal in legal proceedings: the person you appoint as attorney-in-fact or agent for your assets may represent you in legal proceedings related to your real estate, including litigation, out-of-court negotiations and appearances before authorities. 

Types of powers of attorney for real estate

There are two main types of powers of attorney for real estate; choosing one or the other will depend on your use or application:

• General power of attorney: this gives the attorney-in-fact broader authority to act on behalf of the principal in all matters relating to the principal's real estate.
• Special power of attorney: this limits the attorney-in-fact's authority to perform specific actions related to a particular property or a specific real estate matter.

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Recommendations for choosing the right proxy

If you have already decided to make a power of attorney to secure your instructions about your assets, then think now about the best choice of that person to whom you will give the name of "attorney-in-fact", either because he/she is a family member or close relative, or because he/she is the lawyer who has assisted you in other proceedings. Keep in mind that this is a crucial decision that must be made with great care. Here I share the ideal characteristics of a suitable attorney-in-fact for this exercise:

• The attorney-in-fact must be a person of absolute trust, responsible, with good financial judgment and knowledge in the real estate field. 

As to the principal or person conferring the power of attorney, the following must be taken into account:

• It is important that the proxy discusses his or her wishes and expectations with the proxy before conferring and signing the document to ensure that his or her responsibilities are fully understood.

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Can a power of attorney for real estate in Canada be revoked?

In Canada, additional considerations must be known about the laws. If things did not go as well as expected or if the principal decides that he/she wants to undo this legal document and void it, then it can be revoked. The principal can revoke the power of attorney at any time, even if it is irrevocable! and must notify the attorney-in-fact of his or her new decision.

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What happens to the power of attorney if the principal becomes incapacitated?

Generally, in these cases, the power of attorney remains valid and the attorney-in-fact can continue to act on your behalf. As the laws in Canada are often complex because they are handled differently in each province, it is advisable to consult with a lawyer who can explain, even in Spanish, the specific legal implications in this case. 

If you need to make a power of attorney or draft a legal document to secure your estate, you can count on us at Immiland Law Professional Corporation.

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Immiland Law Professional Corporation 

We are a full-service, specialized firm for new immigrants to Canada and we are here to accompany you at every stage of your family planning process. 

A power of attorney in Canada requires the advice of a lawyer specialized in inheritance and real estate law who, in addition, knows how to draft the document respecting the specific instructions of the principal and knows the legal requirements of the province. So before drafting this document, consult with regulated specialists.

I hope you find this article useful. Thank you for reading it. Remember, at Immiland, we provide proper guidance and ensure effective estate planning to protect the future of your property, investments, liquid assets and other assets. See Immiland Law services here.

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With love,

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Immiland Law