power of attorney to sell
A special power of attorney granting authority to sell an asset on behalf of the owner.
What it means
A power of attorney to sell is a letter granting authority from the asset owner to another person to sell a specific asset. In inheritance matters, this letter is often used so one person can handle the sale on behalf of several heirs. A power of attorney to sell differs from an ordinary power of attorney because it is specifically for a sale. This letter is usually made before a notary so it is accepted by a bank or buyer.
Why it matters for families
A power of attorney to sell affects who is authorized to sign the transaction and receive the sale proceeds. A power that is too broad can be misused, for example, an asset sold below market price. Conversely, without valid authority, the sale of inherited assets can fail at the notary. The family needs to set a price limit and the purpose of using the funds.
Example
For example, three heirs agree to sell inherited land worth Rp700 million, but only one is in town. The other two grant a power of attorney to sell through a notary with a minimum price limit of Rp650 million. The sale proceeds are then divided according to the agreement.
Common misunderstanding
It is often assumed that a power of attorney to sell is the same as transferring ownership. The correction is that the power only grants authority to act, while the transfer of rights still requires a deed and a separate process.