What is a Real Estate Power of Attorney?
A Real Estate Power of Attorney is a legal document that grants an individual (the agent) the authority to make decisions regarding another person's (the principal's) real estate properties. This includes buying, managing, or selling property on the principal's behalf.
Who can be appointed as an agent?
Anyone the principal trusts can be appointed as an agent. This can be a family member, a close friend, or a trusted advisor. The chosen agent should be reliable, trustworthy, and, ideally, have some knowledge of real estate.
Is a Real Estate Power of Attorney form legally binding in all states?
Yes, a Real Estate Power of Attorney is legally binding in all states, but the specific requirements, such as witness signatures and notarization, can vary from state to state. It's important to check the local laws to ensure the form meets all legal criteria.
How does one revoke a Real Estate Power of Attorney?
To revoke a Real Estate Power of Attorney, the principal must write a revocation document that explicitly states the intention to revoke the power granted to the agent. This document also needs to be notarized and, in many cases, recorded with the same authorities where the original Power of Attorney was recorded.
Can a Real Estate Power of Attorney be used for a single transaction?
Yes, you can draft a Real Estate Power of Attorney to be specific for a single transaction. In this case, the document will detail the scope and limitations of the agent’s power, which will be limited to that particular transaction.
What happens if the principal becomes incapacitated?
If the Real Estate Power of Attorney is durable, it remains in effect even if the principal becomes incapacitated. This ensures that the agent can continue to manage the real estate affairs without interruption. Without a durable clause, the power of attorney would automatically terminate if the principal becomes incapacitated.
Does the agent get compensated for their services?
Compensation for the agent is not required but can be stipulated in the Real Estate Power of Attorney form. The terms of compensation, if any, should be clearly outlined in the document to avoid any future disputes.
Can an agent sell property to themselves?
Generally, an agent cannot sell the property to themselves without express, written permission from the principal. This is considered a conflict of interest and could nullify the transaction unless the Power of Attorney specifically allows such actions.
What is the difference between a general Power of Attorney and a Real Estate Power of Attorney?
A General Power of Attorney grants broad powers to the agent across a wide range of the principal’s affairs, whereas a Real Estate Power of Attorney specifically limits the agent's authority to real estate matters only. This means the agent can only make decisions and take actions related to the principal's real estate properties.