The Real Estate Encyclopedia
What Is A Power Of Attorney?
Category - Home Selling Questions - Selling Legal & Closing FAQ's

A Power of Attorney is a legal instrument used to delegate legal authority to another. The person who signs a Power of Attorney is referred to as the Principal and the person receiving the power is referred to as the Agent (not to be confused with Real Estate agent) or Attorney-in-Fact. The power of Attorney gives legal authority to the Attorney-in-Fact to make property, financial and other legal decisions for the Principal.  If the buyers intend to use a Power of Attorney, the executed (signed) document must be presented at the closing. 

 

There are different types of Power of Attorney such as the "Nondurable" which takes effect immediately and remains in effect until it is revoked by the Principal or until the Principal becomes mentally incompetent or dies.  This type of Power of Attorney is often used for a specific transaction, like the closing on the purchase or sale of a residence.  Other types of Power of Attorney are "Durable," and "Springing" Power of Attorney.  The buyer should consult with his/her legal representative when in need of drafting a Power of Attorney. 

 
Category(s)
Home Buying Questions - Buying Legal & Closing FAQ's
Home Buying Questions - General Home Buying FAQ's
Home Selling Questions - General Home Selling FAQ's
Home Selling Questions - Selling Legal & Closing FAQ's
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