Many times in Real Estate the need for a Power of Attorney comes into play.Recently I had a client who traveled for work and wasn't able to sign the required documents prior to closing on the sale of his home.
Through the title company and the lender, he set up a Power of Attorney and allowed someone he trusted to sign on his behalf.
Powers of Attorney are legal documents. Basically, the principal (you) delegates to someone you trust (called your agent or attorney in fact) the power to engage in financial transactions in your name, using your assets, with the same legal effect as if you had signed the transaction documents yourself.
Powers of Attorney (POA) have some variations such as is it durable? it is a springing power, or is it limited or general? Does it permit modification or trust or does it permit gifting and long term care benefit?
You can quickly see why it's important to use a professional who is versed in the many options and which you need.
In the case of the real estate example above, the POA can be limited or general. You are authorizing an agent to sign a deed and other documents to close a specific sale or escrow and it is limited in time with a fixed expiration date, or it can be very general and comprehensive in nature.
If you believe you may need a power of attorney, it's best to let your real estate professionals know in enough time so they can gather the people and the paperwork needed to move forward towards a successful closing of the transaction. Best of luck:)
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