Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed facilisis, metus vel porttitor iaculis, libero ipsum congue nisi, quis cursus arcu eros quis nulla. Phasellus fringilla eu metus nec ultrices. Sed ut accumsan purus.
Learn More
Understand the role of power of attorney in real estate. We’ll break down what it is and how it impacts closing on real estate transactions. Learn more.
Navigating the process of appointing a power of attorney (POA) can be delicate, but rest assured, the Endpoint team is here to support you and keep your transaction moving along as planned. By providing the proper documentation, individuals utilizing a POA can reduce delays and close their transactions smoothly and efficiently.
Power of attorney is a legal document that grants a specific individual (often a family member) the authority to be an “agent” and make decisions and act on behalf of another person (the principal). A power of attorney is used in various circumstances where the principal requires someone to act on their behalf due to illness, injury, or other circumstances.
POA documentation protects the interests of both the principal and the agent. For the principal, it ensures that their interests are represented and protected, even in their absence. For the agent, it provides a clear legal framework for their authority and responsibilities, minimizing the risk of liability or misunderstandings.
Closing procedures typically require the principal to sign documents and provide instructions to the settlement agent. With a POA, the agent can sign the necessary paperwork and act on behalf of the principal, so that the transaction can be completed without delay.
A POA can also authorize the agent to handle financial transactions related to the property, such as wiring funds, managing escrow accounts, and paying closing costs. This is particularly useful for principals who live in a different location than where the transaction is taking place.
In most states, a POA must be notarized to be legally binding. Some states also require the POA to be recorded with the county recorder's office, especially for real estate transactions to add an extra layer of validity.
Before proceeding with a transaction, your title company will want to verify the validity of the POA document. This is a necessary standard practice to confirm the agent can rightfully act on behalf of the principal, especially if the principal is unable to participate directly. The verification process typically includes checking that the POA documents were properly notarized and reviewing the relevant public records and any state-specific requirements. Depending on location, property-specific POA documentation may also be necessary.
When a POA is in place, it is critical that proper documentation is provided so that the closing is not impacted. Failure to provide the necessary POA documentation could impact closing dates and the transaction. Submitting POA documentation promptly will help the transaction proceed smoothly and helps protect all parties' interests.
At Endpoint, your closing team will keep detailed records of all communications, documents, and actions taken during the transaction. This will help to prevent misunderstandings, so the transaction proceeds smoothly.
If you have further questions or need assistance with your real estate transactions, please reach out to our expert team for personalized guidance and support.
