Limited power of attorney in real estate occurs when someone gives another individual authority to legally act on his or her behalf. This action occurs quite often in real estate transactions.
Power of attorney is a legal document that is governed by state law, and those laws vary from state to state. But, in general, limited power of attorney in real estate allows an individual to sell a piece of property and handle all legal matters relating to that sale. In many cases, limited power of attorney covers a single real estate transaction such as the sale of a home or property.
An individual with limited power of attorney in real estate can:
- Legally conduct business on behalf of another individual.
- Enter into contracts.
- Change legal documents related to the specified transaction.
In a nutshell, power of attorney allows another individual to take “powerful” actions and make important decisions on your behalf. Therefore, it’s very important to grant power of attorney to an individual who you are confident will be conducting business with your best interests in mind. It is a tremendous responsibility with many legal ramifications.
Power of Attorney can be revoked, terminated or set to expire on a certain date. Durable power of attorney remains in effect even after you die or become disabled, while non-durable power of attorney becomes void should you die or become disabled.
Again, this is a legal procedure and many questions are likely to arise. For more information, please consult an experienced real estate attorney or the real estate professionals that make up The Olear Team.