Real estate power of attorney is a legal arrangement that allows one person (the agent or attorney-in-fact) to act on behalf of another person (the principal) in real estate transactions. There are two main types of power of attorney in real estate: general power of attorney and limited power of attorney.
- General Power of Attorney:
- With general power of attorney, the appointed individual (agent) is granted broad authority to act on behalf of the principal in various matters, including real estate transactions. The agent can make decisions related to property and finance, essentially having the same powers as the principal. This type of power of attorney is comprehensive and can cover a wide range of activities.
- Limited Power of Attorney:
- Limited power of attorney is more specific and grants the agent a narrower set of powers for a particular transaction or purpose. In the context of real estate, limited power of attorney might be used for a specific property transaction, such as the sale of a home. The powers granted are defined in the legal document, and the agent’s authority is limited to those specified actions.
Key points regarding real estate power of attorney:
- Transaction Approval: Before using power of attorney for a real estate transaction, it’s crucial to ensure that the closing company has approved its use. Realtors and real estate attorneys can assist in confirming that all necessary parties are notified.
- Powers Granted: An individual with real estate power of attorney can legally conduct business on behalf of the principal, enter into contracts related to the specified transaction, and make changes to relevant legal documents.
- State-Specific Laws: Laws governing power of attorney, including real estate power of attorney, can vary from state to state. It’s essential to understand and comply with the specific legal requirements in the relevant jurisdiction.
- Selecting a Representative: Choosing a representative with integrity and trustworthiness is critical, as they will be making decisions on behalf of the principal. The selected individual should act in the best interests of the principal throughout the transaction.
If you have questions about real estate power of attorney or need guidance on related matters, feel free to contact The Olear Team for assistance.