{"id":650,"date":"2019-04-15T06:00:11","date_gmt":"2019-04-15T10:00:11","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=650"},"modified":"2024-04-25T23:21:05","modified_gmt":"2024-04-26T03:21:05","slug":"conveying-real-estate-through-a-power-of-attorney","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/conveying-real-estate-through-a-power-of-attorney\/","title":{"rendered":"Conveying Real Estate Through a Power of Attorney"},"content":{"rendered":"\n
\"Image<\/figure><\/div>\n\n\n\n

A power of\nattorney enables an agent (also called the attorney-in-fact<\/em>)\nto conduct transactions on another person’s behalf.<\/p>\n\n\n\n

The POA\ndocument often appears in the world of real estate transactions. A person\n(called the principal<\/em>)\nmight require a stand-in to sign financial documents, on account of\nabsence or disability. A limited\npower of attorney<\/em> can enable the agent to carry out any and all\nreal estate transactions or even give an agent specific authority to sell one\nhome (“for the sale of 123 Smith Avenue only”), and for a specified\nprice. <\/p>\n\n\n\n\n\n\n\n

The\nprincipal’s incapacity might be a temporary absence or illness. Yet\nsome disabilities are permanent. If so, a spouse, relative or\nfriend with POA can sign a deed or other real estate documents. This\naverts the need for the court system to intervene and assign a guardian\nor conservator<\/a>. <\/p>\n\n\n\n

Creating\nthe Power of Attorney; Conveying the Deed <\/h2>\n\n\n\n

Any\ntrustworthy, capable adult can hold POA. The POA document can also name a\nsuccessor agent in case the principal’s first choice becomes unavailable. The\nprincipal might even designate co-agents. When appointing multiple\nagents, the document should state whether the majority may act without\nfull consensus.<\/p>\n\n\n\n

The\nprincipal who creates the power of attorney must sign the document. Under\nstate law, witnesses observe the agent\u2019s signature, or a notary does, or both\ndo. The agent signs the POA document, or a separate certification, as required\nby state law.<\/p>\n\n\n\n

A durable power of attorney <\/em>takes\neffect upon its signing, and continues notwithstanding a finding of the\nprincipal’s mental incapacity or infirmity after its execution. <\/p>\n\n\n\n

Alternatively,\na POA can be made to take effect when the principal becomes disabled.\nThis is a springing<\/em>\npower of attorney.<\/p>\n\n\n\n

The vesting\nlanguage on the deed transfers the real estate from the grantor<\/em> the actual current\nowner, not the agent to the new owner, the grantee<\/em>. The\nagent writes the actual owner\u2019s name, and then signs the agent\u2019s own name with\nthe identifier \u201cPower of Attorney.\u201d In other words, the principal\u2019s name will\nclearly appear as the grantor, but the agent is signing as POA. <\/p>\n\n\n\n

The real\nestate transaction service company which provides title support will typically\nhave a notary on staff, handling the paperwork. The notary block will identify\nthe agent – the person who is physically signing – and will identify this\nperson as the agent, although the grantor\u2019s name will appear over the\nsignature line.<\/p>\n\n\n\n

Avoiding\nPitfalls<\/h2>\n\n\n\n

When\nanticipating the need to convey real estate under POA:<\/p>\n\n\n\n