Buying an Apartment in Ukraine through a Power of Attorney: Key Risks and Considerations

Purchasing property in Ukraine, especially when the seller is acting under a power of attorney (POA), involves several potential risks. Here’s what American buyers should keep in mind to ensure a safe and sound transaction.

1. Risk of Forged or Revoked Power of Attorney:

• Authenticity Concerns: POAs can be forged or revoked without the buyer’s knowledge, which could render the transaction invalid. If the POA was rescinded prior to the sale, it may jeopardize the validity of the entire transaction.

2. Legal Issues or Owner's Restricted Rights:

• Ownership Limitations: The POA may have been issued by someone without full authority over the property. Issues can arise if the property is under lien, has been seized by a court, or has multiple co-owners. Such circumstances can lead to legal disputes, financial loss, or even the forfeiture of the property.

3. No Direct Contact with the Property Owner:

• Unverified Intentions: Dealing with third parties rather than the actual owner may not reflect the owner's true intentions. There have been cases where owners were unaware of the sale or hadn’t given explicit consent.

4. Fraud Risk:

• Potential Scams: The person acting under the POA may not be trustworthy. In cases of fraud, you could risk losing your funds and property rights altogether.

5. Uncertain Validity Period of Power of Attorney:

• Limited Duration: The Ukraine Power of Attorney may be temporary or dependent on the owner’s health condition. If the owner passes away or loses legal capacity, the Ukraine Power of Attorney becomes null and void, leaving the transaction legally unenforceable.

Tips to Minimize These Risks:

• Consult with a Real Estate Attorney: Work with an attorney who specializes in Ukrainian real estate law to navigate complexities and ensure thorough due diligence.

• Verify the Power of Attorney: Always confirm the authenticity and validity of the Ukraine Power of Attorney with a notary. This step is critical to prevent any potential issues.

• Direct Deals are Best When Possible: If feasible, negotiate directly with the owner to reduce risk and ensure clarity in the transaction.

Following the steps given real estate attorney can help mitigate risks and protect your investment.

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Kyiv, Ukraine