By: Advisor / Mohamed Mabrouk

A Power of Attorney Is Not a Title Deed: Key Legal Principles | Mohamed Mabrouk

📞 For inquiries regarding powers of attorney, sales, and related legal matters, contact Legal Consultant Mohamed Mabrouk at 01055144010.

Some people believe that issuing a special official power of attorney for sale automatically transfers ownership of the property or asset to the attorney-in-fact. In principle, however, a power of attorney is not a title deed. It is a legal instrument that grants specific authority to another person to act on behalf of the principal.

It is therefore important to distinguish between a power of attorney and a sale contract or ownership documents, particularly in transactions involving real estate or other assets.

Is a Power of Attorney Proof of Ownership?

A power of attorney does not, by itself, create ownership for the attorney-in-fact. Instead, it defines the powers granted by the principal.

If a power of attorney authorizes the attorney-in-fact to sell, this generally means that the person has been authorized to carry out the sale on behalf of the principal. It does not automatically make the attorney-in-fact the owner of the property or asset simply because the power of attorney was issued.

Therefore, a power of attorney should not be confused with a legal document proving the transfer of ownership.

Can a Special Power of Attorney Be Revoked?

One important legal principle is that a special official power of attorney may be subject to revocation under the applicable legal rules, even if the parties have agreed that it should not be revoked, subject to the cases and exceptions established by law.

Therefore, an agreement stating that a power of attorney cannot be revoked does not necessarily make it absolutely irrevocable.

The legal position in each case depends on the nature and wording of the power of attorney and the circumstances surrounding it.

Does a Special Power of Attorney for Sale Constitute a Sale Contract?

A special power of attorney for sale is not, by itself, a sale contract. It is an authorization allowing the attorney-in-fact to carry out a sale on behalf of the principal within the powers stated in the document.

This distinction is important because the existence of a power of attorney does not automatically establish that a sale has been completed or that the purchase price has been paid.

The Attorney-in-Fact's Accounting Obligations

When an attorney-in-fact carries out a sale on behalf of the principal, certain obligations may arise toward the principal, including providing an account of the transaction, depending on the nature of the relationship, the power of attorney, and the transaction itself.

The attorney-in-fact may also need to provide evidence of payment or delivery of the sale proceeds to the principal, depending on the circumstances and available documentation.

This demonstrates that acting under a power of attorney does not mean that the attorney-in-fact becomes entitled to the principal's money. The attorney-in-fact remains bound by the scope of the authority and the legal obligations arising from the agency relationship.

Why Should a Power of Attorney Be Reviewed?

The legal effects of powers of attorney vary according to their wording and the specific authorities they grant.

Reviewing a power of attorney before selling, purchasing, or dealing with property or other assets can help determine:

• The scope of the attorney-in-fact's authority.
• The transactions permitted under the power of attorney.
• Whether and how it may be revoked.
• The obligations imposed on the attorney-in-fact.
• The documents required to establish the transaction and payment.

The Importance of Legal Consultation

Transactions involving powers of attorney may contain important legal details, and relying on an incorrect understanding of the document can lead to disputes between the principal and attorney-in-fact.

For this reason, it is advisable to have the power of attorney and related documents reviewed by a legal professional before taking action, particularly in transactions involving sales, real estate, or financial assets.

Legal Consultant Mohamed Mabrouk

For inquiries regarding powers of attorney and legal transactions involving sales and ownership, contact Legal Consultant Mohamed Mabrouk.

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01055144010

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Cairo, Egypt

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Conclusion

A power of attorney is not a title deed. A special power of attorney for sale does not, by itself, establish that a sale has been completed or that ownership has been transferred. Instead, it grants specific authority to the attorney-in-fact to act on behalf of the principal.

The possibility of revocation and the obligations imposed on the attorney-in-fact depend on the nature and wording of the power of attorney and the relevant legal circumstances. Reviewing the documents and obtaining appropriate legal advice can therefore be important before proceeding with a transaction.