Recognized power of attorney for transfer of rights
- Buying an apartment in Israel
- Contract Structure
Usually, a recognized power of attorney will be held by his proxy who will transfer to the buyer power of attorney in parallel with the payment of the full amount.
Another possibility is that the power of attorney will be held by another lawyer who is not related to the transaction, who will hold the power of attorney in trust and transfer it to the buyer according to the provisions of the contract.
The last possibility is that the power of attorney will be held by the buyer’s attorney, who will use it in accordance with the provisions of the contract.
It is important that the power of attorney is not held only by the seller, in order to prevent a situation where he will refuse to transfer the power of attorney.
When the power of attorney is with the lawyer, he is committed to loyalty to the buyer, even if he does not represent him.
However, the seller must know that he may find himself in a situation of breach of contract and his power of attorney will not pass the power of attorney in a timely manner. Therefore, the seller would do well to keep another original copy of the power of attorney with him.
Some sales districts include a clause that a seller’s power of attorney will be delivered to the buyer only after payment of the full amount and after the buyer has met all his obligations by that date or has not breached the contract or other general provisions. In my humble opinion, it is better not to put in such a provision and it is true that the power of attorney will be transferred to the buyer against payment of the full amount even if the buyer has breached the contract.
Otherwise, there may be situations where the buyers in a minor breach will still refrain from using the power of attorney, even though they have paid the full amount.