A Power of Attorney in Real Estate Transactions is a legal document which gives someone else legal authority to enter into transactions on your behalf. A Power of Attorney is accepted in all states, but the rules and requirements vary from state to state.
How the Power of Attorney Works
A Power of Attorney is essentially a contract document, which means you can control the full extent of the powers given to your attorney.
- A Power of Attorney gives one or more persons the power to act on your behalf as your agent or attorney.
- The person or persons given Power of Attorney will fulfill the administrative role of entering into an agreement for you so that you don’t have to sign every document. Their signature is legally effective to the same extent as if you had signed the document.
- They can bind you with legal contracts and sign your name on real estate transference documents.
- The power could be limited to certain activities such as closing the sale of your home.
- The power may give permanent or temporary authority to act on your behalf.
- The power may take immediate effect or upon the occurrence of a future event in which you are unable to act for yourself due to physical or mental disability.
- A Power of Attorney can be revoked; however, most states require a written notice of revocation to the person acting on your behalf.
- An agent with a valid Power of Attorney can take any action permitted in the document, but often they need to present the actual document in order to institute that power.
Benefits of Power of Attorney
- It provides convenience, allowing you to complete transactions if you do not wish to appear in person.
- You are able to prepare or plan for situations such as absence or incapability; you may not be able to act on your own behalf due to physical or mental inability.
- You are able to rely on someone else’s expertise such as a real estate agent or a real estate lawyer.