I'm buying a Property in Pennsylvania, I realized that the seller is using a wholesaler company, so the contract says the name of seller and AIF the other person's name that is signing the contract, but the attorney in fact is the wholesaler. Can anyone help me how to protect myself ? I asked the title company to confirm the seller's authority to execute the purchase agreement and if they are reviewing the documentation establishing his authority before closing.
You did the right thing by asking the title company to verify the authority of the person signing on behalf of the seller. That's one of the most important steps.
A few additional thoughts:
Ask the title company or closing attorney to review the Power of Attorney and confirm it specifically authorizes the attorney-in-fact to sell the property.
Make sure the seller of record is the party conveying title at closing and that the deed will be executed properly.
Confirm there are no issues with liens, judgments, or ownership that could affect marketable title.
If you're using financing, let your lender know about the structure early, as some lenders have specific guidelines regarding powers of attorney or wholesale transactions.
Review your purchase agreement carefully to understand inspection, financing, and title contingency deadlines so your earnest money remains protected if an issue arises.
A wholesaler acting under a valid Power of Attorney isn't necessarily a red flag, but it's something that deserves additional due diligence. As long as the POA is valid, the title company is satisfied with the documentation, and you're receiving clear, insurable title, the transaction can proceed normally.
You're asking the right questions. Taking the time to verify everything now is much easier than trying to resolve an issue after closing. Best of luck with your purchase!
it's really smart you already looped in the title company on this. that's exactly their job – to make sure the person signing actually has the legal authority to sell the property. what i'd suggest is making sure they get a copy of the actual power of attorney document and review it thoroughly. they'll be looking to confirm it's valid, properly signed and notarized, and clearly states the wholesaler has the specific power to sell and convey real estate for that seller. the title company protects you from any issues with who can legally sign on the dotted line, ensuring your ownership is clean. they're your best line of defense here.