'Powers of Attorney' in a Real Estate Transaction!

There are two (2) types of Powers of Attorney (POA), "general" and 'limited":

1. 
   
   General POA: As the name implies, this POA is general in scope and covers all things the grantor could do if there in person. Normally, this format does not require that the property address be included nor a legal description attached.


2. 
   
   Limited or Specific POA: The specific powers or authorization granted in this POA are limited to only those duties spelled out in the document itself. This is the preferred format for real estate transactions. If a deed is to be executed using this POA, then it is mandatory that the property be described by address and a legal description attached. POAs must be executed according to the requirements of the jurisdiction (state) where the grantor is located or where the property is located.

Real estate attorneys prefer that property not be conveyed using a POA for the reason that if it is discovered that the POA is defective in some manner, either in its execution or format, then that renders the conveyance void or voidable. Our theory is that if the owner can execute a POA, then why not have them execute the deed and use the POA or "letter of Authorization" to close the transaction.

If a POA is needed, it's best to find a family member, relative or the grantor's legal counsel to fulfill this obligation.

If you need a Power of Attorney document drawn up for a real estate closing, please contact Guardian Title Agency - Terry Monnie @ 256-4779, Steve Gittinger @ 378-9900 or their paralegal, Diane Friedlander @ 984-0440. The normal cost for each POA is $75.

This article was sourced & written by Terry Monnie, real estate attorney, of Guardian Title Agency.