Power of Attorney in Certificate-of-Title system
The Conveyancing Committee is aware that some lenders include a power of attorney form in their loan packs going out to solicitors. The committee was recently made aware that one lender sought to withhold issue of loan funds until the borrower鈥檚 solicitor had the power of attorney form executed by the borrower in advance of drawdown.
The committee confirms that it is not part of the certificate-of-title agreement with lenders participating in the Society鈥檚 certificate-of-title system that a power of attorney form will be executed. A lender is not entitled under the system to withhold issue of loan funds on the grounds that such a power has not been signed.
If practitioners continue to encounter this matter in practice, they should let the committee know, for the purpose of the committee taking up the matter with the relevant lending institution