Powers of Attorney Act, 1996

Protection of attorney and third person where registered power invalid or not in force.

13.—(1) Subsections (2) and (3) apply where an instrument which did not create a valid enduring power has been registered, whether or not the registration has been cancelled at the time of the act or transaction in question.

(2) An attorney who acts in pursuance of an enduring power which is not or no longer a valid power or which has ceased to be inforce shall not thereby incur any liability (either to the donor or to any other person) unless at the time of acting the attorney knows—

(a) that the instrument did not create a valid enduring power; or

(b) that an event has occurred which, if the instrument had created a valid enduring power, would have invalidated the power or caused it to cease to be in force; or

(c) that the instrument has been cancelled.

(3) Any transaction between the attorney and another person shall, in favour of that person, be as valid as if the power had then been in existence, unless at the time of the transaction that person has knowledge of any of the matters mentioned in subsection (2).

(4) Where the interest of a purchaser depends on whether a transaction between the attorney and another person was valid by virtue of subsection (3), it shall be presumed in favour of the purchaser unless the contrary is shown that the transaction was valid if—

(a) the transaction between that person and the attorney was completed within twelve months of the date on which the instrument was registered; or

(b) that person makes a statutory declaration, before or within three months after the completion of the purchase, that he or she had no reason at the time of the transaction to doubt that the attorney had authority to dispose of the property which was the subject of the transaction.

(5) For the purposes of section 18 (protection of attorney and third persons where action is taken under the power of attorney in ignorance of its having been revoked) in its application to an enduring power the revocation of which by the donor is by virtue of section 11 (1) (a) invalid unless and until confirmed by the court under section 12 (3), knowledge of the confirmation of the revocation is, but knowledge of the unconfirmed revocation is not, knowledge of the revocation of the power.

(6) In this section “purchaser” has the meaning assigned to it by section 18 (6) and “purchase” shall be construed accordingly.