Power Of Attorney in Real Estate: What Is It?

In the world of real estate, if you find yourself unable to manage a sale or a purchase of a property in person and you are considering outsourcing the task to someone else, you may draw up a power of attorney agreement. In real estate, a power of attorney is a legal document that gives another individual the authorization to sell, manage, or purchase property on your behalf. This type of agent, also known as an attorney-in-fact, can step in to manage your property according to the permission granted in the power of attorney. In this article, we will discuss the role of a power of attorney, how they work in real estate, and how long they last for a better understanding.

Continue to read to find out what a power of attorney is and what they do in the world of real estate.

What is a Power of Attorney?

In the world of real estate, a power of attorney is a legal document that will allow one or more people to act on your behalf when taking management of assets, selling a home, or any decisions that fall under the umbrella. This agreement will be the deciding factor of whether the authorized agent is or is not permitted to make it on your behalf. A power of attorney is something that is widely accepted in all 50 states, though specific rules vary by location. To finalize a document, both the asset owner and the authorized agent have to sign it before a notary and one or more witnesses.

How a Power of Attorney Works in the World of Real Estate

A power of attorney in the world of real estate applies to property management, allowing a trusted person to manage, purchase, or sell property on behalf of the asset owner. This type of agent with authorization may be able to sign paperwork, handle title documents, sift through different offers, or take care of the different moving parts that go into selling or buying a home.

A power of attorney can be used if someone is unable to manage their property or attend the closing of a home in person for whatever reason. With a power of attorney underemployment, the asset owner or principal doesn't need to attend to matters in person–the authorized agent can act as their representative in transactions that are strictly authorized.

How Long Can Employment of a Power of Attorney Last?

The amount of time that a power of attorney lasts will vary state by state, though you may be able to set up indefinite authorization. Many states allow a durable power of attorney to remain active until the principal either passes away or revokes permission. It is entirely possible to draw up a termination date in the contract if you want the power of attorney to expire on a pre-set date. It is worth checking in with the power of attorney contract if you are planning on relocating to a different state. Moving more than likely won't invalidate the document. However, it is still a good idea to update the contract with your most recent information.

It is always a good idea to check in with your power of attorney and the lawyer who drafted it to see if it requires updates or revisions. If the content of the contract no longer meets your personal needs, you can always opt to revoke the agreement entirely or choose to assign a new agent to act on your behalf.

The Difference Between a Power of Attorney vs. Executor of Estate

An executor of an estate is not the same thing as a power of attorney. A power of attorney can act on your behalf for many different responsibilities if you are medically impaired or out of the country. An executor of an estate is someone who deals with a deceased individual's financial affairs. An executor of an estate is named in the deceased's will, and it can be anyone, from a relative in the will, a probate court judge would name someone to be the executor of estate. There are several administrative responsibilities, from paying off creditors to distributing assets and filing tax returns. Someone who is an authorized agent though a power of attorney may have specific responsibilities related to the management of assets or real estate.

Conclusion

A power of attorney is convenient if you are selling and cannot be present to deal with the hubbub that comes along with selling a house. The world of real estate can be a lot, and life happens, which is why having a trusted friend, family member, or legal partner at hand to be your power of attorney is the best method to get the job done without dirtying your hands. Trust the professionals at Benchmark Realty to find you your dream home while taking your old one off your hands in the many beautiful neighborhoods in Nashville, TN, today!