Power of Attorney for property: what it is and how to go about it in Nigeria

A Power of Attorney (POA) is a legal document that grants another person the authority to act on your behalf in specific legal or financial matters. A POA allows you to authorise someone else to manage, sell, lease, or otherwise deal with your real estate assets. Understanding its purpose, types, and the process of obtaining one is crucial for a property owner.

A Power of Attorney for property helps prevent legal complications and safeguard your interests. Photo: Creativeye99 (modified by author)
Source: Getty Images

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Navigating property transactions in Nigeria can be complex, requiring delegation of authority to ensure smooth operations. A power of attorney (POA) is valuable if you cannot manage your property and financial affairs.

What is a Power of Attorney for property?

A Power of Attorney (POA) for property is a legal document through which an individual (the principal) grants another person (the agent or attorney) the authority to act on their behalf concerning property matters. This document is handy when the principal cannot personally manage their property due to illness, injury, or unavailability.

Types of Power of Attorney

In Nigeria, several types of Power of Attorney serve distinct purposes and offer varying degrees of authority. Below are the most notable ones:

General Power of Attorney

This type of POA grants the agent broad powers to manage the principal's property affairs, including buying, selling, and conducting other transactions.

It is well-suited for situations where the principal requires someone to temporarily handle their property matters, such as during an extended trip abroad. However, it becomes void if the principal becomes incapacitated, making it unsuitable for long-term or health-related contingencies.

Special Power of Attorney

A Special Power of Attorney is limited to specific tasks or transactions, such as selling a particular property. Once the task is completed, the authority ceases. This type of POA is beneficial for a single real estate transaction or for delegating authority during a brief period of unavailability. It offers specificity, ensuring the agent's powers are confined to a well-defined scope.

Irrevocable Power of Attorney

Unlike other types, the principal cannot revoke an Irrevocable Power of Attorney once granted, except through a court order. It is often utilised in financial transactions where the agent requires assurance of consistent and uninterrupted authority.

Durable Power of Attorney

A Durable Power of Attorney remains effective even if the principal becomes incapacitated, ensuring continuous management of property affairs. This type is essential for long-term planning and is particularly relevant for individuals concerned about future health issues that could affect their ability to manage their estate.

Key elements of a valid Power of Attorney in Nigeria

For a Power of Attorney to be legally binding and enforceable in Nigeria, it must adhere to the following key elements:

A Power of Attorney in Nigeria must meet legal requirements for validity. Photo: DALL.E (modified by author)
Source: UGC

• Clear identification of parties: The principal and agent must be identified with their full names, addresses, and other personal details. Both parties must also have the legal capacity to enter into the arrangement.
• Specific authority granted: The document must explicitly state the powers being conferred, such as the authority to sell, lease, mortgage, or manage property.
• Duration of validity: The POA should specify whether it is general, durable, or specific.
• Signatures and witnesses: The principal must sign the document, and this signature must be witnessed by at least one adult who is not a party to the POA. Witnesses should provide their names, addresses, and signatures.
• Notarisation and registration: While notarisation adds credibility, registration is essential for POAs related to land transactions. This step ensures enforceability under Nigerian law and provides public notice of the agent’s authority.
• Revocation clause: The POA should outline how and under what circumstances the principal can revoke it.
• Governing law clause: To avoid jurisdictional conflicts, the document should state that it is governed by Nigerian law.
• Non-contravention of existing laws: The terms must not conflict with Nigerian property or contract laws, such as the requirement for the Governor’s consent under the Land Use Act.
• Proper formatting and language: The POA must use clear, precise, and legally sound language to prevent disputes or misinterpretations.

How to obtain a Power of Attorney

After registration, a professional lawyer must draft a power of attorney according to the applicable law. Below are steps you can follow to obtain a POA in Nigeria.

1. Consult a property law lawyer. Here, you should seek advice on the type of POA best suited to your needs.
2. Next, the lawyer will prepare the POA, ensuring it includes all necessary details and aligns with the principal’s intentions.
3. The principal and the agent must review and sign the draft in the presence of witnesses.
4. A notary public will authenticate the POA, adding an extra layer of legal validation.
5. Lastly, the POA can now be registered. While not mandatory, registering the POA with the relevant government authority is advisable, especially for real estate transactions. This step enhances legal protection and ensures public recognition of the agent’s authority.

Importance of a Power of Attorney for property in Nigeria

A Power of Attorney for property allows the agent to oversee property-related matters. Photo: Stocknshares
Source: Getty Images

A Power of Attorney provides numerous benefits, including:

• Delegated authority: This enables the principal to authorise the agent to manage, buy, sell, lease, or transfer property when they cannot do so personally.
• Efficiency: Facilitates property dealings without requiring the principal’s physical presence, saving time and costs.
• Property management: Allows the agent to oversee property-related matters, such as collecting rent, handling repairs, and paying taxes, ensuring seamless administration.
• Continuity in incapacity: Ensures that the principal's property affairs are managed according to their wishes, even if they become incapacitated.
• Legal representation: In disputes, the agent can represent the principal in negotiations or court proceedings, protecting their interests.

Who prepares the Power of Attorney in Nigeria?

Drafting a Power of Attorney in Nigeria is typically the responsibility of a legal professional, such as a lawyer or notary public. Engaging an expert ensures the document is legally sound and complies with statutory requirements.

What is the most powerful type of Power of Attorney?

The General Power of Attorney is often considered the most powerful type of POA. It grants the agent extensive authority to act on behalf of the principal in nearly all legal or financial matters, including property transactions.

A Power of Attorney for property is crucial for managing property transactions in Nigeria. Whether you choose a general, special, irrevocable, or durable POA, understanding its implications and ensuring it is properly prepared and registered can prevent legal complications and safeguard your interests.

Legit.ng recently published an article on essential documents for proving ownership of a house or land. The guide highlights the importance of title deeds, certificates of occupancy, and other vital paperwork, along with steps to obtain them.

Understanding these documents is crucial for securing property rights and avoiding legal disputes. Whether you're a new homeowner or looking to verify ownership, this article provides valuable insights into the process.

Source: Legit.ng