You’ve likely heard the term “power of attorney” used before, but what does it mean in relationship to real estate? Basically, limited power of attorney in real estate gives the appointed individual the power to make decision for and act in the best interest of another individual.
As the name implies, giving someone power of attorney allows them to act as your agent, while limited power of attorney is indeed limited to specific transactions. For example, limited power of attorney may only allow someone to sell a single property on your behalf at a pre-determined price.
It’s important to note that power of attorney is a legal document that can differ from state to state, so it’s best to consult with a real estate attorney or experienced Realtor before entering into a power of attorney situation. Power of attorney can have a set expiration date, or it can stay with you until death. Again, it’s very important to know exactly what you’re getting into before granting — or accepting — power of attorney.
Limited power of attorney in real estate…
- Allows an individual to conduct business — such as the sale of a piece of property — for another individual.
- Permits the individual to handle all legal matters pertaining to the sale as they arise.
- Allows the individual to enter into contracts.
- Allows the individual to revise legal documents related to the transaction.
We can’t stress enough that you should focus on the word “power” in power of attorney, because you are handing over a lot of authority. That being the case, make sure you only grant power of attorney to someone you completely trust to act in your best interests!
For more information on power of attorney in real estate, please contact The Olear Team today.