In our industry, the phrase real estate power of attorney is one we hear quite often. Typically, there are two types of power of attorney in real estate: General and limited power of attorney.
When someone has general power of attorney, they can basically do anything the principal can do. The principal is the individual who grants power of attorney to another individual. This is a legal appointment that allows an individual to make decisions for another person regarding property and finance.
Limited power of attorney, on the other hand, gives an individual a more narrow range of powers, allowing him or her to conduct a specific transaction. Please note that laws pertaining to real estate power of attorney vary from state to state.
If power of attorney is to be used to complete a real estate transaction, you must be certain that the closing company has approved the use of power of attorney for the real estate closing. Your Realtor and/or real estate attorney can help ensure that all parties have been notified.
An individual with real estate power of attorney can:
- Legally conduct business on behalf of another individual.
- Enter into contracts on behalf of that individual.
- Change legal documents related to the specified transaction.
Power of attorney is a very powerful tool, so be careful when selecting your representative and be sure to select an individual who will act in your very best interest.
For more information on real estate power of attorney, please contact The Olear Team today!