Giving a solicitor power of attourny?

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Chaddy
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Giving a solicitor power of attourny?

Post by Chaddy » Wed Jul 17, 2019 12:34 pm

Mmmm,is it normal and or advisable to give a solicitor here power of attourney when flogging your property :?
They did act for us when we bought the apartment.
Any idea of fees? ( it does have title deeds )
Thanks for any input you can give.

Firefly
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Re: Giving a solicitor power of attourny?

Post by Firefly » Wed Jul 17, 2019 12:45 pm

Personally I wouldn't, our solicitor sent any documents that needed signing to us in the UK, and we sent them back by courier. Once POA is given, the solicitor can do anything without your consent, not good.
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Jimgym
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Re: Giving a solicitor power of attourny?

Post by Jimgym » Wed Jul 17, 2019 1:26 pm

We did it when we sold our house as we were away at the time. Providing it is worded correctly and states precisely what he/she is allowed to do then it should be fine. Go with what you’re most comfortable with.

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Devil
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Re: Giving a solicitor power of attourny?

Post by Devil » Wed Jul 17, 2019 2:05 pm

Firefly wrote:
Wed Jul 17, 2019 12:45 pm
Personally I wouldn't, our solicitor sent any documents that needed signing to us in the UK, and we sent them back by courier. Once POA is given, the solicitor can do anything without your consent, not good.
That is up to you. You can sign a general one, in which case you're correct but stupid. If you define exactly the powers, then the attorney cannot do what you have not stipulated.

Firefly
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Re: Giving a solicitor power of attourny?

Post by Firefly » Wed Jul 17, 2019 5:07 pm

Correct, it was up to me !

How much does it cost to have a P.O.A drawn up in Cyprus ?
It's not the size of the dog in the fight, it's the size of the fight in the dog.

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Happy in Cyprus
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Re: Giving a solicitor power of attourny?

Post by Happy in Cyprus » Wed Jul 17, 2019 6:55 pm

Why not ask around a few law firms? Simple email or phone call, stating your precise requirements.

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Lofos-Jan
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Re: Giving a solicitor power of attourny?

Post by Lofos-Jan » Thu Jul 18, 2019 2:25 pm

Many people give a POA to their lawyer for conveyancing. It should state that they can sign the necessary documents for the sale of the property as instructed in writing by you. It is very useful as you now need full tax clearance to sell a property and it's very difficult to deal with the tax office if you are not here in Cyprus. As Devil said, never sign a general POA.

Sale fees should be 1% of the sale price + VAT for the lawyer to do the conveyancing. Plus disbursements (fees/stamps for the Land Registry and Tax office for which receipts should be provided to you). Most lawyers will charge £€50 to €100 for the POA and around €200 extra for the settlement and transfer of the utilities.

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dimsum
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Re: Giving a solicitor power of attourny?

Post by dimsum » Thu Jul 18, 2019 2:38 pm

Thanks, useful info - dimsum

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Lofos-Jan
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Re: Giving a solicitor power of attourny?

Post by Lofos-Jan » Thu Jul 18, 2019 4:51 pm

Just to add, always get an email from the lawyer confirming the costs before proceeding.

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Happy in Cyprus
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Re: Giving a solicitor power of attourny?

Post by Happy in Cyprus » Wed Aug 14, 2019 10:41 am

Recently my brother-in-law in the UK had a serious, potentially life-threatening, illness and was in an induced coma for two weeks. He and my sister have a small property in Cyprus. And although my b-i-l has now 95% recovered, there remains the possibility of a recurrence in future. I suggested to my sister that she and hubby ought to think about giving each other enduring PoAs to help smooth matters in the event of either of them suffering a severely disabling illness in future.

My sister agreed and has someone coming to see them with regard to their UK assets, but she wondered whether a similiar PoA could be made with regard to their assets in Cyprus. So on her behalf, I asked wills & probate lawyer, Marion Carter, who practices in Cyprus for her opinion. This is her reply:

"A power of attorney is a deed in which one person (the donor) gives another person (the attorney) authority to act on his or her behalf and in his or her name. Such ordinary power of attorney, provided it is prepared and executed in accordance with the requirements of the government departments and other authorities in Cyprus, can be used by the attorney for dealing with the donor’s property and other assets situated in Cyprus. However, this ordinary power of attorney is automatically revoked when the donor becomes mentally incapacitated. Therefore, the attorney no longer has the authority to act.

An enduring power of attorney (EPA) or, since 1st October 2007 replaced by a lasting power of attorney (LPA), is a power of attorney that continues to remain in operation notwithstanding the donor’s supervening incapacity. An LPA has to be prepared and signed by the donor when they have full capacity.

The provisions of an EPA or an LPA are not recognised in Cyprus so therefore the document cannot be used by the attorney to deal with the donor’s property and affairs in Cyprus. In the event that the donor becomes incapable of managing his or her own property and financial affairs, an application has to be made to the district Court for the issue of a Court Order or for the ratification of the EPA or LPA . Such proceedings can be complicated as full details and evidence are required by the Court regarding the donor’s finances, family, liabilities, projection of ongoing expenses and, of course, such proceedings are time consuming and expensive".

So there you have it, a definitive opinion by a lawyer qualified to practice in both the UK and Cyprus.

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Re: Giving a solicitor power of attourny?

Post by Chaddy » Wed Aug 14, 2019 3:48 pm

Thanks ever so much HIC,very usefull indeed.

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Re: Giving a solicitor power of attourny?

Post by trevnhil » Wed Aug 14, 2019 7:41 pm

My wife and I were thinking of having what I now see is an LPA each, so that if one of us becomes incapable of dealing with property or banking the other could act on their behalf.
But if I read correctly what Marion has said, it really hardly seems worthwhile :-(
Trev..

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Happy in Cyprus
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Re: Giving a solicitor power of attourny?

Post by Happy in Cyprus » Thu Aug 15, 2019 12:34 am

Correct Trev, that's what she's saying. We won't bother now either.

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Re: Giving a solicitor power of attourny?

Post by Chaddy » Thu Aug 15, 2019 7:11 am

A friend of ours when they sold their apartment made it clear to their solicitor that the funds for the property had to be deposited in sterling into a UK bank account before the deal was finalised..It worked and buyer,solicitor ,and they where all as happy as Larry.
When I asked why they wanted it this way they said the thought of the sale funds being here in sunny Cyprus and another haircut taking place was to much to bear.
Mmmmm,is this good advice?

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Happy in Cyprus
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Re: Giving a solicitor power of attourny?

Post by Happy in Cyprus » Thu Aug 15, 2019 11:03 am

Chaddy, deposits of €100,000 per person in Cyprus are fully protected, so €200,000 per couple https://acb.com.cy/deposit-protection-scheme

My personal belief is that a haircut will never again happen in Cyprus...and possibly never in Europe. And with the Cyprus economy growing at the rate it has in recent years, there is no need.

2013 was a quite exceptional year for Cyprus, when the country teetered on the edge of bankruptcy - both banks and commercial organisations. The haircut was a hastily-convened solution to get Cyprus out of the hole it was in. To that extent it worked, though it was painful for those with bank deposits in excess of €100k - which is never advisable anyway.

Chaddy
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Re: Giving a solicitor power of attourny?

Post by Chaddy » Thu Aug 15, 2019 3:38 pm

Yes HIC ,but would you chance it if you did not have to?

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Happy in Cyprus
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Re: Giving a solicitor power of attourny?

Post by Happy in Cyprus » Thu Aug 15, 2019 4:15 pm

I think the Cyprus Government guarantee is as good as anywhere else. Even if I had disposable cash funds in excess of €200k I would spread the load between different banks and jurisdictions. The Cyprus banks susceptibility to failure was widely discussed on the Cyprus Living forum and elsewhere, months before Laiki failed and deposits in BoC suffered a haircut. We had one Russian customer who lost €12 million in the haircut; he was quite stoical about his loss afterwards; but why anyone would trust €12 million to one bank/country escapes me. Another SA customer lost 90% of their life savings of €800,000. Again, why would you trust that much to one banking institution?

trevnhil
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Re: Giving a solicitor power of attourny?

Post by trevnhil » Thu Aug 15, 2019 4:44 pm

But back to power of attorney.... If we don't go for an LPA each what is the alternative.. ??

We each have our own title deed to the property.. So if one of us dies, the remaining person will have to go to probate, the have the will leaving property and belongings to the other person :-(
Trev..

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Re: Giving a solicitor power of attourny?

Post by Austin7 » Thu Aug 15, 2019 6:43 pm

trevnhil wrote:
Thu Aug 15, 2019 4:44 pm
But back to power of attorney.... If we don't go for an LPA each what is the alternative.. ??

We each have our own title deed to the property.. So if one of us dies, the remaining person will have to go to probate, the have the will leaving property and belongings to the other person :-(
........... and then perhaps assign the property to sons/daughters to avoid probate on the demise of the remaining joint owner.

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Re: Giving a solicitor power of attourny?

Post by trevnhil » Thu Aug 15, 2019 7:03 pm

I would be interested in what you mean by... Assign the property ??
Trev..

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