In real estate transactions, it’s common for buyers or sellers to be unable to attend a closing in person. Whether due to travel, illness, or scheduling conflicts, a Power of Attorney (POA) can help ensure the transaction proceeds without delay.
What is Power of Attorney?
A Power of Attorney is a legal document that allows one person (the “principal”) to authorize another (the “agent” or “attorney-in-fact”) to act on their behalf. In real estate closings, a limited or specific POA is typically used, granting the agent authority to sign closing documents, deeds, and related paperwork.
Florida has specific requirements for POAs used in real estate transactions:
- POA Forms Must Meet Statutory Requirements: A proper and legitimate form must be used. The document must be signed by the principal in the presence of two witnesses and a notary public. Additionally, many title companies require the POA to be reviewed and approved prior to closing, and it may need to be recorded in the county where the property is located. Lenders can also impose their own rules. If financing is involved, the lender must approve the use of a POA, and some may have strict guidelines or even prohibit it altogether. For this reason, it’s critical to communicate early with all parties involved in the transaction.
- Selecting a POA: This might seem obvious, but choosing a trustworthy agent is essential. This individual will have the authority to sign legally binding documents, so reliability and attention to detail are key.
Although it is not mandatory to have a lawyer create or implement your POA, it is often most efficient to do so. The legal terms and protocols involved can be tricky for someone who does not have the required expertise. A lawyer, and particularly a real estate focused lawyer, will ensure your POA is in accordance with your state’s laws and give you peace of mind during your closing.
When properly prepared and approved, a Power of Attorney can be a valuable tool in real estate closings, offering flexibility while keeping transactions on track. The Law Office of Donna Hearne-Gousse will help you through the process of properly executing a POA for a real estate transaction and can assist with all aspects of title and escrow.
The Law Office of Donna Hearne-Gousse
(561) 582-5670