Letter of Attornment Case Law

Due to past obligations or unanticipated circumstances, there are times when it may be hard for us to complete some tasks and make wise judgments for ourselves. In such a situation, you would require a surrogate to manage your personal affairs or decide on critical healthcare matters. This is when the letter of attornment is useful. A letter of attornment gives the agent the authority to handle a variety of transactions.

In the 1961 case of R. Kanthimathi & Anr. v. Beatrice Xavier, the Madras High Court held that a tenant’s attornment to a new landlord is not mandatory for the transfer of property rights; the transfer is effective upon conveyance, and the tenant’s acknowledgment is not a prerequisite.

What Does Attornment Mean?

When a tenant accepts a new property owner as their new landlord, attornment has taken place. When it comes to commercial properties that are in the process of changing hands, an attorney clause in a Subordination, Non-disturbance, and Attorney Arrangement (SNDA) enables the tenant to accept a new owner as their landlord and keep paying rent regardless of whether the properties are sold at a regular sale or through a foreclosure.

An attorney-client relationship may develop, for instance, if a tenant rents an apartment only to have the owner amend the lease later.

According to the SNDA provision, in the event of a change in ownership, the new owner shall replace the prior owner in the lease. Moreover, they must take on all of the prior owner’s duties and rights. Additionally, the condition mandates that tenants keep paying rent regardless of who owns the flat.

What is Attornment Agreement?

Real estate law is most frequently associated with attorney-client privilege. However, it is intended to recognize the connection between the parties to a transaction. If the occupant does not sign the rental agreement, it does not provide the owner with any new rights. However, the tenant’s unwillingness to sign could be used by the landlord as justification for eviction.

In a mortgage rental property, an Attornment Agreement aids in defining the rights of all parties. According to the agreement, the landlord’s lender, not the tenant, has the highest claim to the property. The occupant’s rights are thus subservient, which is why the agreement is also frequently referred to as a Subordination Agreement.

Even if the landlord violates the mortgage, the lender may choose to accept the terms of the lease. The occupant, however, is required to make timely rental payments. 

How to Write a Letter of Attornment Case Law

In a letter of attornment, the following are often the key components:

• Your name, address, and signature as the principal.
• The name, address, and signature of your Agent.
• The activities and properties under the Agent’s authority.
• The start and termination dates of the Agent’s powers.
• Any compensation you will give to the Agent.
• The name, address, and signature of the person who witnesses the signing.

A letter of attornment gives someone the ability to act in your place, but it does not interfere with your freedom to make decisions or take action. In fact, if there is a difference of opinion between you and your Agent, you still have the last say.

You should think about getting legal advice from a lawyer if you intend to draft a letter of attornment so that you can avoid wasting a lot of time and effort. You can also write the letter by yourself by doing the following:

• Come up with a draft
• Make decisions about springing powers
• Choose your Agent and a Successor Agent
• Add the expiration date
• Finalize your letter
• Affix your signature

#1. Come up with a draft

The first step is to create a list of the unique abilities you intend to give your Agent. You should precisely list the accounts, assets, and transactions that your Agent will have control over because such exceptional powers need to be very specific.

You may need the services of a Financial coach to come up with a detailed draft.

#2. Make decisions about springing powers

A conditional statement has springing power. These powers are not available for use by the agent unless a certain circumstance or condition has been met. Until the condition or event giving rise to the springing power happens, the agent cannot legally act on your behalf.

Without a provision, this form of power can still be used, and your letter will still be enforceable once you have signed it.

#3. Choose your Agent and a Successor Agent

The most crucial part of crafting this letter is probably designating your Agent. A person you can trust should be the Agent you select. Additionally, picking a Successor Agent is advised in case something happens to your first choice.

#4. Add the expiration date

Your letter should specifically state that your Agent’s authority is limited to a certain period of time. But you can create a Durable letter of attornment if you want the agreement to stand for as long as you are alive.

Even if you become unable to perform your duties, this still stands. No matter what kind of letter you choose, keep in mind that this authority expires with your passing.

#5. Finalize your letter

You can now complete your letter after assembling all the necessary data. When outlining the details in the text, use straightforward, unambiguous language. Your letter should include your full name, the full name of your agent, and the full name of your successor agent. Include the time and date you wrote the letter.

#6. Affix your signature

The principal must sign the legal document in front of a notary public for the letter of attornment to be enforceable. Additionally, the document must have all required signatures in order to be finished.

Letter of Attornment Example

Different laws exist in many places around the world regarding letters of attornment. It permits you to treat the money, property, health, and other rights of another individual as you would treat your own. It is possible to write documents for both private individuals and organizations. Documents can range in complexity from simple sheets to complex statements and rights.

Notary Stamps And Signatures

The notary stamp and signatures, which support its legal authority, make it different from a basic letter in most ways. It must also include personal information and the date on which it was signed. The person’s address who will have special powers granted by such a legal instrument must be included in the attorney letter.

Individual Powers

The scope of the powers granted to authorized individuals must also be specified in clear, concrete terms. These powers may be as extensive as your own, but they may also be limited to a few distinct abilities. For instance, you may be able to sell someone a car, but only once, with no further permission.

Date

The date on the letter of attornment may differ from the date on which the actual power will be exercised, which means that it may have been signed in the past but has a legal effect now. 

There must be a specific period of time when this legal document is in effect, according to legislation in many nations, as it is not possible for it to last forever. Another thing to note is that in order for an attorney letter to be effective, the conditions for which it was created must still be in effect when it becomes effective.

It is crucial to include information regarding the termination of the powers granted by this legal document, a letter of attorney, or else it would be insufficient. The letter of attornment makes it significant. It is just one sentence regarding the many rights that are signed by both parties and by two witnesses. The revocation of such a document does not require a justification in writing.

The following is an example of a letter of attornment:

Sample 1

To,
The Court of Law,
Business Legal Documentation,
Reno, Nevada, USA.

Subject: Letter of attornment

Respected Sir,

I wish you well and hope you receive my letter.

On July 1st, 2023, I will attend a performance in the theater. I still have to stay in bed for 90 days once I’m released so that the illness can properly heal.

Due to my inability to work at that time, I won’t be able to handle my regular business or make payments on my expenses.

As a result, for the 90 days beginning July 1 and ending October 1 of 2023, I ask that you act on my behalf.

Please accept my gratitude in advance for your assistance.

Truly yours,
Anderson Moore.

Sample 2

DATE: June 16, 2023
Robert Grant
State Bank
22 Richmond Street
California

Dear Robert Grant,

Along with this letter, please find a letter of attornment that Nina Henry has been given the authority to act in banking on our company’s behalf. Please keep this letter of attornment in your files, and make all internal preparations necessary to ensure that Nina Henry is acknowledged as having the right to handle bank formalities on the company’s behalf.

You can reach me at any moment at 987654321 if you have any questions.

Sincerely,

Brain Berry

Having gone through some of the examples of letters of attornment, you would agree that it requires some level of knowledge to make a better deal. You may want to start your journey by learning about the usefulness of financial literacy.

Conclusion

The format for writing a letter of attornment is quite straightforward and organized. It contains information like the agreement’s date, the names of the landlord, the tenant, and the new lender. Along with the address and signatures of all three parties, this notification typically includes a brief description of the property.

This agreement is primarily used to define the lease conditions associated with a mortgaged property. You may simply rent or sell your property now that you are familiar with the letter of attornment format.

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