In some cases, an individual may choose to close on a home through a power of attorney. Is this legal? The simple answer is yes.
Through a power of attorney (POA), you may send someone else to handle a home-closing process on your behalf. Generally, a POA authorizes another person of your choice to manage transactions during the home’s closing.
What exactly is power of attorney, and how is it useful in real estate transactions?
A power of attorney, also known as a limited power of attorney, is a legal document that grants one person the authority to make decisions on behalf of another person in some legal, private affairs, or business matters. The person who grants the POA is the principal, creator, or donor, whereas the person who receives the authorization is the agent (sometimes an attorney). A power of attorney should always be put in writing.
A power of attorney can be helpful in the event when the principal becomes incapacitated or ill and cannot act personally. Elders and other individuals who have experienced some form of incapacity often want to appoint a trusted person to handle their home closing transaction. In this case, a relative, friend, or spouse uses a power of attorney to manage all the processes involved in a home closing deal.
In Florida, people who want to buy or sell property can use a power of attorney to close deals. Whether you are looking for a vacation home or relocating to Florida, an experienced Jacksonville closing attorney can help.
When executing a power of attorney, you should start by defining the property you intend to purchase or sell according to the legal descriptions. Be sure to document essential details before finalizing your power of attorney so that each party is clear about the agent's scope of services to the creator.
Typically, different types of powers of attorney provide different power levels. For example, general powers allow the agent to handle all the principal’s financial transactions. On the other hand, limited powers let the agent act on behalf of the principal on a specific event such as a home closing.
The creator should have a real estate closing attorney to create and review the POA before they eventually sign it. The most important thing to remember is that the agent, once appointed, will have ultimate powers to make critical decisions that will bind the creator. Hence, the document must reflect the date and place of the creator’s signature.
Whether you plan to close on your home in person or through a POA, the Jacksonville closing attorneys at Atlantic Coast Title and Escrow can help you handle every aspect of your home closing. Contact us online or call us at (904) 853-5591 to speak with a member of our team.