This is the verification of Information paragraph:
“10. VERIFICATION OF INFORMATION: The Seller authorizes the Listing Brokerage to obtain any information affecting the Property from any regulatory authorities, governments, mortgagees or others and the Seller agrees to execute and deliver such further authorizations in this regard as may be reasonably required. The Seller hereby appoints the Listing Brokerage or the Listing Brokerage’s authorized representative as the Seller’s attorney to execute such documentation as may be necessary to effect obtaining any information as aforesaid. The Seller hereby authorizes, instructs and directs the above noted regulatory authorities, governments, mortgagees or others to release any and all information to the Listing Brokerage.”
Review
Set out below and marked in bold and italics are those words that are inserted by me to assist in the review. They are not set out in the clause itself. Let’s look at that paragraph in a little more detail:
10. VERIFICATION OF INFORMATION:
Authorization
The Seller authorizes the Listing Brokerage
to obtain any information affecting the Property
from any regulatory authorities, governments, mortgagees or others and
Further Authorizations
the Seller agrees to execute and deliver such further authorizations in this regard as may be reasonably required.
Power of Attorney Appointment
The Seller hereby appoints
the Listing Brokerage or the Listing Brokerage’s authorized representative
as the Seller’s attorney
to execute such documentation as may be necessary
to effect obtaining any information as aforesaid.
Release Requirement
The Seller hereby authorizes, instructs and directs the above noted regulatory authorities, governments, mortgagees or others
to release any and all information to the Listing Brokerage.
COMMENT
Investigation
There is an obligation to investigate, determine and verify the material facts relating to the sale of a property by the real estate agent. This verification is to take place with sources other than the client. That’s the purpose of the independent verification process, to make sure that matters are true and correct.
This provision is to ensure that the Listing Brokerage will have appropriate authority. First, it’s just an authorization, then, it’s a further authorization, and then, it’s a Power of Attorney, and finally it’s a release requirement.
So, who should the agent be obtaining the information from? The information, whatever it might be will be with:
- regulatory authorities,
- governments,
- mortgagees or
- others
That actually sounds like just about “everybody”.
Power of Attorney Appointment
It may come as somewhat of a surprise, but the Seller executes a Power of Attorney in favour of:
- the Listing Brokerage or
- the Listing Brokerage’s authorized representative.
I would certainly expect that the agent explaining this document and arranging for the execution of this document would point out who the person is, who, in fact, is the Listing Brokerage’s authorized representative.
Surely, if the Seller is appointing someone as his “Attorney”, he should know their name! That’s at the very least!
This is a very serious matter and the agent arranging for the Seller to sign the Power of Attorney, needs to highlight this. It’s far too serious to simply “skip over”.
However, many times, this is something that the Listing agent will simply skip over.
Enforceability
In Ontario, at the present time, two witnesses are required to be present in order to ensure the proper execution of any Power of Attorney. This document seems to require only the presence of one other person, but naturally, there may in fact be two. This fact should be drawn to the Seller’s attention.
Brian Madigan LL.B., Broker