The real estate process requires home sellers to verify that they own the property or otherwise have the legal right to sell it. This is called “authority to sell.”
There are many points throughout the real estate process when a home seller might need to verify their legal right to sell a property. This typically occurs when the home seller's name is not listed on the property title. It's not a problem as long as the home seller can provide "authority to sell" – legal proof of their right to sell the property. Real estate agents, brokerages, and title and escrow companies all commonly request proof of authority to sell when preparing real estate contracts.
Redy also occasionally requires authority to sell from users on our platform. We ask for this information to confirm that the home seller has the legal right to sign a listing agreement with a real estate agent at the end of our bidding process – the whole point of our platform! There are many reasons why Redy might ask you to verify your authority to sell. Here are some common scenarios:
- Your husband/wife purchased the home
- You're trying to sell your parents' home
- You started an LLC with a family member
So, how can you verify authority to sell if your name isn't on the property title? It depends on your situation.
💼 CORPORATION
Generally speaking, corporations that own property must provide:
- Articles of Incorporation and any amendments, along with a certificate of authenticity signed by an officer of the corporation
- Proof of Good Standing with the State of incorporation within the last 30 days
However, the documents needed may vary depending on your business structure. Limited Liability Companies/Corporations and Limited Partnerships are two of the most common structures. If your corporation is classified as one of these structures, you'll need:
Limited Liability Company/Corporation
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- Articles of Organization
- Good Standing within the last 30 days
- Operating Agreement and all Amendments
Limited Partnerships
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- Recorded Certificate of Limited Partnership
- Limited Partnership Agreement and any amendments, plus a certificate of authenticity
- Evidence that the Limited Partnership complies with State filing laws
✍️ POWER OF ATTORNEY
Power of attorney grants legal permission for someone to act on another person's behalf, such as a child on behalf of an elderly parent. All you need in this situation is a signed copy of your Power of Attorney document.
🏡 ESTATE MATTERS
If you're selling property for an estate, such as a family member who passed away, you'll need to provide:
- Letters of Administration
- Death Certificate
- Accounting
- Will
- List of Heirs
🧑⚖️ PROBATE
In real estate, a probate sale is a home sale under a probate court's supervision. Probate sales often happen when a homeowner passes away and doesn't will their property to anyone. To verify authority to sell, you need:
- A court order decreed by a judge
- Clerk-issued Letters of Administration or Letters Testamentary
Unfortunately, Redy cannot accept a verbal or emailed statement granting another individual authority to sell. If you're still not sure what you need to provide, no worries! Schedule a call with a listing specialist, and we'll walk you through the process.