Michael, acting under a power of attorney for his elderly mother, signs a real estate purchase agreement in California to sell her home in Pasadena for $850,000. For the contract to be enforceable under California law, which requirement must the power of attorney meet?
Correct Answer
D) The power of attorney must be notarized and contain specific authority to sell real property
Under California Probate Code §4121-4128, a power of attorney authorizing the sale of real property must be notarized and should grant specific authority to convey real estate. A general power of attorney may not be sufficient for real property transactions unless it specifically includes that authority.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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