- Understand your duties and obligations as an Attorney-in-Fact for real estate property management.
- Maintain complete and accurate records of all transactions so that they can be easily accessed.
- Go above and beyond to keep the property well-maintained and in good condition.
- Responsibly handle financial matters such as paying bills, collecting rent, and managing finances.
- Be aware of possible causes for losing your power of attorney, such as negligence or misconduct.
When appointed as an Attorney-In-Fact, you will represent your client’s interests regarding their property. This means that whenever tenants and other third parties have dealings with the property owner, you will represent them as the Attorney-In-Fact.
You should take this responsibility seriously and ensure all transactions are conducted legally and ethically. But what exactly are your duties? This article will give you a better understanding of what you should adequately do to fulfill your role.
Understanding the obligations and duties of an attorney-in-fact
When you are appointed attorney-in-fact for real estate property management, you are essentially taking on the responsibilities and obligations of the property owner. Some duties include executing leases, paying bills and taxes, and handling maintenance and repairs. It is essential to understand these obligations and responsibilities before taking on the role of an attorney-in-fact.
Maintaining complete and accurate records
As an attorney-in-fact, you are required to maintain complete and accurate records of all transactions related to the property. This includes receipts, leases, bills, and other essential documents. These records should be kept in a safe and secure place where they can be easily accessed.
Going above and beyond to keep the property in good condition
It is your responsibility to ensure that the property is always well-maintained and in good condition. This includes regular inspections, arranging for repairs and maintenance, and keeping the property clean and presentable. Going above and beyond to keep the property in good condition can help protect the property’s value and keep tenants happy.
They are responsibly handling financial matters.
As an attorney-in-fact, you are responsible for all financial matters related to the property. This includes paying bills and taxes, collecting rent, and managing the property’s finances. Handling these financial matters responsibly and ethically is essential to avoid legal issues.
Losing Your Power of Attorney
Although you may be appointed as an attorney-in-fact, certain circumstances could lead to the revocation of your power. This includes failing to promptly fulfill your duties or obligations, taking actions that the property owner doesn’t authorize, and acting outside your authority. It is essential to understand these potential causes of losing your power of attorney to avoid making any mistakes that could lead to the revocation of your ability.
However, if you feel you are unfairly losing your power of attorney, you can contest it. Proper contesting of your power of attorney requires the attention of a legal professional to ensure that your rights are protected. They can provide legal advice and assistance to help you successfully contest the revocation of your power and ensure that you are treated fairly.
Possible Causes for Revocation
A power of attorney may be revoked, leaving the agent without the legal authority to manage the property. Here are some possible causes for losing your power of attorney for real estate property management, enabling you to stay informed and avoid similar pitfalls.
Negligence or Misconduct
Negligence and misconduct are the most common reasons for losing power of attorney in real estate property management. If, as an agent, you fail to perform your duties appropriately or engage in unethical conduct, you are at risk of losing your authority. This can include misappropriation of funds, disregard of property maintenance, or breaches of contract.
Loss of Trust
Losing the property owner’s trust can lead to revocation of power of attorney. For instance, if the agent fails to inform the owner of significant changes or developments in the property, the owner may lose trust in the agent’s ability to manage the property effectively. Such occurrences can lead to revocation of power of attorney.
The Property Owner’s Circumstances
Sometimes the property owner’s circumstances may change, leading to the revocation of power of attorney. This can arise from various situations, such as the owner’s mental incapacity, illness, or death, rendering the original authorization void and requiring the agent’s authority to be re-evaluated.
Lack of Relevant Expertise
As a property management agent, you are expected to have some knowledge of the real estate industry. You must keep current with the latest regulations and developments affecting the industry. Failing to adhere to these responsibilities can lead to losing power of attorney.
The Bottom Line
Acting as an attorney-in-fact for real estate property management comes with great responsibility. Understanding your obligations and duties, maintaining accurate records, keeping the property in good condition, handling finances responsibly, and communicating effectively with all parties involved is essential. By taking these responsibilities seriously, you can help to ensure that the property is well-managed and thriving in the long term.
