When you're getting ready to sell your home, signing the listing agreement probably seems like the easy part. You hire a Realtor, sign the paperwork, and start getting the house ready for buyers.
But what happens when the person signing doesn't actually have the legal authority to sell the property?
It comes up more often than you might think. Maybe the home belonged to a parent who passed away. Maybe it's owned by a trust or an LLC. Or perhaps you're married, but only one spouse's name is on the deed.
These situations don't necessarily prevent a sale, but they need to be sorted out before the property goes on the market.
Otherwise, you could end up with a buyer ready to purchase the home and a seller who can't legally complete the transaction.
Being on the Mortgage Isn't the Same as Owning the Property
Before listing a home, one of the first things to check is whose name is actually on the deed.
You'd be surprised how easily this can get overlooked, especially when several family members are involved.
Someone might be making the mortgage payments, paying the property taxes, or taking care of the house. That doesn't necessarily mean they have the authority to sell it.
The recorded deed and property appraiser's records are the starting points for identifying the legal owner.
The listing agreement should name the actual owner, whether that's an individual, multiple individuals, a trust, an LLC, or an estate represented by someone with the proper authority.
Simply putting "Owner of Record" on the listing agreement isn't a substitute for figuring out who owns the property.
What If You're Married but Only One Name Is on the Deed?
This is something Florida homeowners should pay particular attention to.
If two people own a property together, both generally need to sign the listing agreement unless one has valid written authorization to act for the other.
But what if you're married and only your name appears on the deed?
That's where Florida's homestead protections can come into play.
Even if only one spouse is listed as the owner, the other spouse may still need to sign the purchase contract and deed when the property qualifies as homestead.
That doesn't automatically mean the non-owning spouse has to sign the listing agreement. It does mean their involvement may be necessary to complete the sale.
It's much easier to address that before listing the home than to discover a missing signature when you're getting ready to close.
Divorce and separation can complicate things further. If ownership is disputed or one spouse isn't cooperating, a marital settlement agreement, court order, or the participation of both owners may be necessary.
These are situations where I'd want a Florida real estate attorney involved early.
Selling a House After Someone Dies
Let's say your mother passes away and you're the one handling everything.
You've been taking care of the house, paying the property taxes, and talking with the family about selling it.
Can you sign a listing agreement and put the house on the market?
Not necessarily.
Being the son or daughter of the deceased owner doesn't automatically give you the authority to sell the property.
An estate's personal representative may have that authority through letters of administration, but Florida homestead property can make things more complicated.
Protected homestead property may pass to a surviving spouse or heirs outside the personal representative's general authority.
That means the surviving spouse or heirs may be the people who need to sign the listing agreement, purchase contract, and deed.
Even if the family agrees that selling is the right decision, it's important to establish who legally has the authority to do it.
If you're handling the sale of an inherited property, I would make that one of the first things to address with a Florida real estate attorney.
What If the Property Is Owned by a Trust or LLC?
Not every home is owned directly by an individual. Some properties are held in trusts, LLCs, or corporations.
These arrangements can make sense for different ownership situations, but they also affect who can sign the paperwork.
If the property is owned by a trust, the trustee is generally the person who signs on its behalf, not the beneficiaries.
If there are multiple trustees, the trust documents need to be reviewed to determine whether all of them must sign.
A certification of trust, or the relevant portions of the trust documents, can help establish who the current trustee is and whether they have the authority to sell real estate.
And if the property is a homestead held in a trust, the homestead requirements still need to be considered.
If an LLC or corporation owns the property, the company is the legal owner.
Just because someone manages the company or handles its day-to-day business doesn't automatically mean they can sign a real estate listing agreement for it.
The company's operating agreement or an appropriate resolution can establish who has the authority to act. Florida's Sunbiz records can also help verify the entity's status and its listed managers or officers.
The person signing should clearly identify the company and the capacity in which they're acting.
What About a Power of Attorney or Life Estate?
Sometimes the owner can't personally handle the sale and wants someone else to sign on their behalf.
A power of attorney may allow that, but it has to be valid in Florida, remain in effect, and specifically authorize the sale of real property.
It's also important to remember that a power of attorney ends when the person who granted it dies.
If you're relying on a power of attorney to sell a home, have it reviewed before listing the property. You don't want to find out later that the document won't work.
Life estates and Lady Bird deeds also deserve attention.
These arrangements can involve a life tenant, remainder beneficiaries, and certain rights reserved in the deed. Whether someone can sell depends on those ownership interests and the specific language of the deed.
It's not something to assume based on whose name appears first or who has been living in the house.
Why This Matters to Homebuyers, Too
You might be wondering why any of this matters if you're the one buying the property.
After all, isn't it the seller's responsibility to make sure they can legally sell their house?
Yes, but a problem on the seller's side can quickly become a problem for the buyer.
Imagine finding a home you love in Clearwater, St. Petersburg, Seminole, or somewhere else in Pinellas County.
You schedule a showing, submit an offer, and get the property under contract.
Then, during the title review, it turns out another owner needs to sign. Or perhaps the person handling an estate doesn't have the authority everyone thought they had.
Now the transaction may be delayed while the ownership issue is addressed. In some cases, the deal might not be able to move forward as planned.
That's why it's important to pay attention to ownership issues early, particularly when a property involves an estate, trust, divorce, or another unusual ownership arrangement.
A home being listed for sale doesn't necessarily mean every title question has already been answered.
What Sellers Should Do Before Listing
If you're thinking about selling your home, the best time to sort out an ownership issue is before you start marketing the property.
Start with the recorded deed and property appraiser's records.
If multiple people own the home, establish who needs to sign. If the property is held in a trust or company, gather the documents showing who has authority to act.
If you're dealing with an estate, power of attorney, divorce, or life estate, make sure the appropriate documents are available for review.
Depending on the situation, that could include letters of administration, trust documents, an LLC operating agreement, a corporate resolution, a power of attorney, or a court order.
A title company or Florida real estate attorney can review the documents and determine what is needed before the sale proceeds.
It might seem like extra work when you're eager to get the house listed, but it's a lot better than discovering a problem after you've found a buyer.
The Bottom Line
Selling a home isn't just about finding someone willing to buy it. You also need to make sure the people agreeing to sell actually have the legal authority to do so.
For sellers, getting that sorted out early can prevent problems with the listing, purchase contract, and closing.
For buyers, it's a reminder that there's more to a real estate transaction than the property itself. The ownership and paperwork matter, too.
If you're thinking about selling your home in Pinellas County, I can help you get started with the property records, pricing, and preparation, and coordinate any questions about ownership with the appropriate professionals.
And if you're looking to buy a home, I'll help you navigate the process and make sure important questions are addressed along the way.
Adi Rakanovic, Realtor
Lipply Real Estate | RealPinellas.com
Call or text: (727) 858-7882
This article is for general educational purposes and is not legal advice. Questions regarding ownership, title, homestead rights, and authority to sell should be reviewed by a qualified Florida real estate attorney.
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