Legal Question in Landlord & Tenant Law in Ohio
I have a land contract that was signed by the homeowners power of attorney, her son. If something happens to her and she is put in a nursing home, will i lose my home or is our contract binding?
1 Answer from Attorneys
In Ohio, someone with a valid power of attorney can sign a legally binding contract for another person and that contract will be binding just as if the person herself signed it. A problem which might arise here however is a question of whether the POA was a "durable" Power of Attorney or just a regular power of attorney.
If the person the power of attorney was for was incapacitated when the person with the power of attorney signed it, and the power of attorney document was not a "durable" power of attorney, then it can be argued that the land contract would not be binding. This is because a non durable power of attorney does not survive the incapacity of the underlying person.
But if she was competent when the person with the power of attorney signed for her, then the contract is binding, whether it was durable or not.
But if the power of attorney was a durable power of attorney, it will not matter whether or not she was competent at the time of signing, the land contract will be valid.
Lastly, if the land contract was good at the time of the signing, then it will not matter what later happens to the subject of the power of attorney. A change in this person's status alone will not affect the binding nature of the contract.
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