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Hello. I tried doing a search but couldn't find anything so I apologize if I'm repeating a question...
My siblings and I co-own a home in NC (there are three of us) and we have decided to sell it. All of us live out of state so we've decided to allow a family member in the state to act as a power of attorney. We are giving him limited power of attorney allowing him to sign whatever paperwork needed to sell the home.
My question now is, when the loaning company (or buyer), writes the check, will the check be written to the power of attorney or to the three of us? We don't want the check to be written to the POA. However, the three of us all live far away from each other so if they write one check to all three of us, it would be hard to cash. Do they divide the money by three and send each of us a check? And what about taxes... what kind of taxes need to be paid? Do we need to take taxes out of the full house or is each of us responsible for taxes on our third? Any and all help would be greatly appreciated! Thanks in advance!
Edit: I forgot to add that we have already had an offer on the house and it looks like we will be selling to this gentleman in the next week or two...
You should check with the title company or attorney that will handle the closing. They might be able to get a signed & notarized authorization from each of you as owners on how you want the funds disbursed. As far as taxes, each of you would need to consult your tax advisor on how the income from the sale affects your taxes for the year. If it was an inherited property, the rules will be a little different than if it was purchased as an investment property and then sold.
This is becoming more complicated then I thought. This is not an inheritance - it was a gift to my sisters and I a little over a year ago. None of us want the home so we've decided to sell it. Like I mentioned, the POA is handling everything so I'm assuming he's handling the title and stuff too. Should I mention something in the POA letter stating about the funds and where it should be sent?
You need a simple disbursement instruction. All three sign it and it goes to whoever is the disbursing authority. You may also be able to have to POA write it. Talk to whoever disburses. In the west it will be the escrow company...in the east I presume the sellers lawyer. But ask. Your agent should know at least who to talk to. It is the same person who writes the commission checks. .
sorry if i sound stupid - but i really am ignorant about all this. ok. so if each of us puts in the poa letter that the money being sent directly to us (the owners) and not to the poa, that should handle it? We trust him to do the paperwork, etc - unfortunately, we feel that if he gets the check, none of us will see a penny of it. Thanks again for your answers so far!
sorry if i sound stupid - but i really am ignorant about all this. ok. so if each of us puts in the poa letter that the money being sent directly to us (the owners) and not to the poa, that should handle it? We trust him to do the paperwork, etc - unfortunately, we feel that if he gets the check, none of us will see a penny of it. Thanks again for your answers so far!
You are getting into the legalities so ask a lawyer. I would think the POA can be written to exclude the reception of disbursed funds.
I would also suggest getting a new "attorney". If you don't trust this individual pretty far you have no reason for allowing him or her to structure the deal. There is more than one way to screw a seller.
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