Legal Updates

A power of attorney may be deemed irrevocable only if executed to secure a preceding right of a third party

October 18, 2015
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A lawyer signed a sales agreement for land under a power of attorney was titled "Irrevocable Power of Attorney" but the landowner moved to cancel the agreement on the grounds that the lawyer was authorized to negotiate but not to sell the property and the power was revoked by him and in any case was limited in time but the attorney delete the time limit from the document after its execution.

The Court held that a power of attorney headed "irrevocable" may be revoked unless given to secure rights of others that existed prior to the granting of the power. In this case the power of attorney was not given to secure rights of others and is therefore not irrevocable and the seller was entitled to revoke it.

The Court also dismissed the buyers claim that they are entitled to the real estate property under the Israeli real estate Marché ouvert (or, Market overt) principal because such principal does not apply upon purchase of land rights on the basis of documents, including power of attorney, that were forged, even if the transaction was finalized in good faith by registration at the land registry.