When someone is unavailable to sign real estate documents due to absence or illness, it is often possible to arrange a limited Power of Attorney for another person to sign the documents on their behalf. A limited Power of Attorney (also known as a Specific Power of Attorney) grants limited executive powers to a designated person (the agent) to act on the behalf of a signer (the principal). The agent is also referred to as an Attorney-In-Fact.
A limited Power of Attorney is usually utilized for a specific process or matter, unlike a General Power of Attorney which grants broader authority. It may also be effective for a limited period of time.
A few examples where a limited Power of Attorney may be used:
- Accountant : A principal might grant a limited Power of Attorney to his accountant, so the accountant can act on his behalf with taxing agencies.
- Banker: A principal might grant one to his investment banker, so the banker can have the power to make investment decisions on his behalf.
- Legal Document Signing: The principal might use a limited Power of Attorney to designate an agent to sign contracts or documents on his behalf. The documents could be related to business operations or the purchase, sale or refinance of real estate.
The limited Power of Attorney document itself will specify the authority the agent will have and includes detailed instructions from the Principal. It requires notarization.
If the limited Power of Attorney is to be utilized in a real estate transaction, the title company and lender (if applicable), must approve the limited Power of Attorney prior to use. In many cases, the title company will have a specific template they prefer the principal to use.
Once the principal has signed and notarized the limited Power of Attorney, the agent then has the legal capacity to transact business and to sign on behalf of the principal, as if the principal himself were doing it.
Some reasons why a limited Power of Attorney might be used to sign real estate documents:
- The principal is traveling out of the country or working out of state
- The principal is ill and indisposed
- The principal is elderly and signing would be an ordeal
- The principal cannot sign legibly
- The principal prefers to skip the tedious signing process
Totally Notary is an experienced licensed, bonded and insured notary public that specializes in real estate documents and is well versed in the execution of Power of Attorneys.
If you are unavailable to sign your real estate documents and need an agent to sign on your behalf, call Totally Notary. With Helen signing on your behalf as your attorney-in-fact, you can have confidence that your documents will be executed accurately and confidentially.
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