Unwritten RE Rule #1

Here are some of the RE industry's unwritten rules.

Unwritten RE Rule #1: SPA Expiry

Government agencies require special power of attorneys (SPAs) to be notarized within 6-12 months from the date of signing of the Deed of Absolute Sale. But it's probably best to err on caution and have it issued within the last six months.

As mentioned in last Tuesday's post, the reason why they (likely) require this is to make sure that:

a. the principal is still alive, and

b. the SPA has not been revoked.

Although the SPA is legally still valid beyond this period, arguing with persons in authority takes time. By the time you get a final answer, the deadlines for tax payments have likely lapsed, and the transactions will have been penalized. In other words, it's easier to secure a new SPA.