Buying via Power of Attorney: How to Arrange and Mitigate Risks

Buying by power of attorney: the quick idea 📝

Using a power of attorney (POA) to buy property is a practical option when you cannot be present. It must be done carefully: the POA should be tailored, notarised and combined with checks and financial safeguards to avoid fraud.

Types of POA and which to choose

• Special (limited) POA — authorises a single transaction (recommended for one property purchase).
• General POA — broad powers, not recommended for one‑off purchases.
• Time‑limited POA — valid for specific dates; increases security.

Tip: Choose a special, time‑limited POA that clearly lists permitted actions. It reduces exposure and legal ambiguity.

Step‑by‑step: how to prepare a POA for a property purchase 🪪

1. Define exact powers: signing the sales contract, registering ownership, receiving keys, collecting funds.
2. Include full IDs for both principal and agent (names, passport details, addresses).
3. Specify start and end dates and the mechanism for revocation.
4. Notarise the POA. For foreign documents use apostille or consular legalisation and, if needed, a certified translation into Georgian.
5. Fix payment terms and how funds will be transferred and released — ideally via escrow or a secure bank procedure.

Documents and checks before the deal ✅

• Extract from the property registry showing the owner and any encumbrances (mortgage, liens, easements).
• Notarised copies of passports for owner and agent.
• Original POA and certified translation (if POA was issued abroad).
• Proofs of no outstanding taxes or utility debts where relevant.
• Bank confirmations of payment or escrow agreements.

Always request a fresh registry extract right before signing to ensure nothing changed.

Main risks and how to close them ⚠️

• Forged or invalid POA: require notarisation, apostille/consular checks for foreign POAs, and verify with the issuing notary.
• Revoked POA: confirm the POA is still valid with authorities and request written confirmation.
• Hidden encumbrances: order a detailed registry extract and cross‑check with seller declarations.
• Funds released prematurely: use escrow, bank conditional payments, or hold funds with a trusted notary.
• Double sale risk: ensure registration of ownership at the public registry is completed before transferring final funds.

Practical rule: avoid releasing funds until the buyer’s right is officially registered, or secure the funds in an escrow arrangement.

Practical protection examples 💡

• Example A: A foreign buyer issues a special POA at their consulate; the POA is translated and notarised in Georgia. Funds are placed on escrow and released after registration.
• Example B: A seller issued a too‑broad POA; the buyer insists on a replacement POA limited to the single sale and a mandatory reporting clause.

Extra measures: video recording of signature, signed handover protocols, and legal representation during registration.

Choosing an agent: tips for trust and control 🤝

• Reputation and references: appoint a trusted lawyer or agency with verifiable track record.
• Reporting obligations: include a requirement in the POA for the agent to provide periodic reports and copies of documents.
• Limit the agent’s right to delegate to third parties unless explicit consent is given.

Quick checklist before signing

• Verify the registry extract and owner identity.
• Confirm POA is special, notarised and translated if needed.
• Agree on secure payment terms (escrow/bank/notary).
• Limit the POA term and specify reporting.
• Get a lawyer to review final documents.

Final thoughts and how BuyHome can help 🏡

Buying by POA can be safe and efficient when you combine a limited POA with registry checks and financial safeguards. If you need assistance with drafting or verifying a power of attorney, checking property records, or arranging a secure payment, contact us. We can help you prepare documents and accompany the transaction. Learn more or book consultation at https://buyhome.ge/en.