Power of Attorney
- Buying an apartment in Israel
- Contract Structure
Simultaneously with the signing of the contract of sale, the parties sign an important power of attorney number. Usually, the power of attorney is intended for a lawyer.
The contract will provide provisions regarding the power of attorney to be signed, instructions regarding how to use the power of attorney and also specify who will hold the power of attorney.
The power of attorney they will sign is irrevocable and it is very important to make sure that they sign at the same time as signing the contract of sale, due to the fear that if they do not sign on that date – they will never sign, such as death or incapacity or for any other reason.
It is important to ensure that those who hold the power of attorney sign a document of irrevocable instructions and guidelines because those trustees undertake to hold the power of attorney in trust and act in the power of attorney in accordance with the provisions of the contract.
Thus, there will be a separate document from the contract with an exact undertaking by that trustee to act in accordance with the provisions of the contract.
A clause may be added to the body of the contract with an irrevocable provision that the parties instruct the trustees to act with the power of attorney under the provisions of the contract, and to exempt these trustees from financial obligation, and to undertake to indemnify the trustee as long as he acts in good faith The buyer may think that he has paid the full consideration while the seller will claim that he received the funds in short supply. The trustee will be in a dilemma as to whether or not to transfer the power of attorney.
It can therefore be stated that as long as he acts in good faith, the parties will not come to him with complaints.