Often abbreviated as POA, the Power of Attorney is a simple concept. Bouncing off of my previous series on agency, when you allow someone to act on your behalf you have relied on an agent. That agent is working for you to accomplish a goal.
Special Agent….Universal Agent
A real estate agent is a “special agent”. They are only contracted to work for you in one area of your life. You have hired them specifically to find or sell your home and negotiate with the other side to get it done as easily as possible. Sometimes in your life you need someone to act on your behalf for something other than a real estate. You may need someone to stand in for you in a legal matter. When you create a Power of Attorney you create a “Universal Agent” and their signature is the same as your signature.
One example of when you may need a Power of Attorney is when a spouse is unavailable to sign directly. They may be out of the area due to work or deployment when it’s time to settle and close a deal. Your attorney can create a Power of Attorney for the remaining spouse is able to sign on behalf of the missing spouse.
Different Types of POA
Limited Power of Attorney is giving someone the right to sign your name in specific deal or area. An example of this may be if a seller isn’t local and they grant their attorney to sign on their behalf for a specified property or document. This situation may occur and the parties involved will use the Limited POA option to precent a delay in closing while waiting for the documents to be sent via USPS or overnight service. An example may be an altered closing disclosure or some other attorney drafted document that requires a wet signature (see below)
One thing to be sure to understand when using POA to sell a property is that the actual original copy of the Power of Attorney, not a copy of the document, must be recorded with the deed. This is called a wet signature and is very critical to the deed being recorded and the deal closed. Only originals can be used. Photocopies or faxes can not be accepted. Plan ahead…..
It’s really important to plan ahead when you are planning on using a Power of Attorney in real estate. The POA, while not a complicated set of documents, can certainly complicate things. As soon as its possible, discuss this with your attorney. They are the ones responsible for the legal portion of the transaction and can best guide you on the process. Their job is to be your agent in navigating the legal portions of your deal.
This is entry number 36 and theres only 9 weeks left in 2021. My goal is to have 52 done this year so there’s much more to come in the closing weeks of the year. I will have to double up a few weeks in November and December if I am going to hit my goal. That is good news for you and the folks you know looking to buy or sell a home in the coming months. I am planning on touching on many new concepts including knowing when is it time to list or buy, expenses to think about when buying and wrapping up the year with a final series on how we go about listing a home for sell. Needless to say, I am very excited to bringing that to you in the final weeks. The new entries will help us transition into the 2022 market.
I am standing by when you are ready to get moving!
Inner Banks Real Estate
252 312 2263