Power of attorney
A power of attorney is a written authority by which one person, the donor, lets another, the attorney, act for them. In Ontario, a general power of attorney for property is sufficient authority to do anything the donor can lawfully do by an attorney, subject to any conditions and restrictions in it.
A party who cannot attend closing may sign through an attorney; ask early whether the other side, a lender or a registry will want to see the document. The attorney does not sign in their own right; they act under written authority the donor gave. See also what happens on closing day.
Ontario and British Columbia
Ontario’s Powers of Attorney Act, s. 2, says a general power of attorney for property is sufficient authority to do on the donor’s behalf anything the donor can lawfully do by an attorney, subject to conditions and restrictions in it. Section 3(1) says that if a power is terminated, revoked or invalid, a later exercise is valid and binding as between the donor or the donor’s estate and any person, including the attorney, who acted in good faith and without knowledge of the termination, revocation or invalidity, subject to the saving in s. 3(2) for a person entitled to money paid. British Columbia’s Power of Attorney Act, s. 6(1), lets a corporation within its legislative jurisdiction empower a person by an instrument under its corporate seal to execute deeds or documents on its behalf for a specified matter or purpose. This entry covers these provisions only.
What to ask
- Does the document cover this transaction, and does it set conditions or restrictions?
- Is it still in force, or has the donor revoked it or has it ended?
- If the donor is a corporation, what authority does the signer hold? See split signing and closing.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentPowers of Attorney Act, R.S.O. 1990, c. P.20
- 02Government of British Columbia (BC Laws)GovernmentPower of Attorney Act, RSBC 1996, c. 370
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