Sale of real estate to oneself on the basis of a power of attorney
Code: OBZM00060
Question
We gave our nephew the power of attorney to sell our property and we gave him the power of attorney to negotiate the purchase price as well. We agreed (only verbally) that we would give him 5% of the purchase price in case of a successful sale. Now we happened to learn that the nephew sold these properties to himself in our name at a price that is significantly below the market price. Did he have the right to do this?
The answer
An authorized representative may not represent another person if his interests conflict with those of the represented party. In our opinion, there was clearly a conflict of interest in the case they described, so that such a sale has the characteristics of an absolutely invalid legal transaction. They can assert their rights through the legal process, but we recommend that they seek the services of a good lawyer.
Answer according to the current legal status valid on 21/01/2023.