As Realtors, we often complete transactions with individuals identified as power of attorney for real estate closing. In a nutshell, having power of attorney means that an individual has legally appointed you to make decisions regarding his or her property or finances. The person who grants power of attorney is called a principal.
Generally, we deal with two types of power of attorney for real estate closing: Limited and general power of attorney. Limited power of attorney gives an individual a narrow range of powers to conduct a specific transaction. If someone has general power of attorney, they can basically do anything the principal can do. Of course, laws do vary by state.
A person holding power of attorney — an executor, for example — has a fiduciary responsibility to act in the very best interest of the principal. If not, he or she may find themselves in court being challenged by a family member of the principal. Sadly, it does happen on occasion.
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 real estate closing. Your Realtor and/or real estate attorney can help ensure that all parties have been informed.
Additional information regarding power of attorney for real estate closing
- In case you were wondering, an executor is prohibited by law from transferring power of attorney to another individual to handle their duties.
- In any matter involving real estate transactions — no matter how challenging it may seem — you are never truly alone in the process. Reputable Realtors, estate attorneys, estate liquidators, etc. will always be ready and willing to lend a hand and offer advice when needed. All you have to do is ask!