‘Power of attorney’ is the flexible legal tool that grants permission for somebody to act on another’s behalf on a permanent or temporary basis. In real estate, it can be an amazingly useful alternative for all types of situations, such as if you had to sell your house but could not be there due to the deployment and job relocation.
The Real Estate Power of Attorney is used to entitle another individual to acquire, manage, convey, mortgage (refinance), or to sell as the agent (real estate broker or realtor) on the behalf of the principal. The form might be used in a durable manner that means if the individual who is delegating power, the “principal”, becomes in the vegetative state (incapacitated) then the attorney-in-fact nominated is still capable to carry out their duties.
What Is a Real Estate Power of Attorney?
Real Estate Power of Attorney is a document that enables the owner of real estate an ability to authorize another individual or an Agent to perform a wide variety of assignments on behalf of the Principal’s real estate. The Real Estate Power of Attorney is tailored to allow the Agent to handle the Sale, Purchase, Closing, Management, or Refinancing of the Property. Use this Real Estate Power of Attorney form if –
- You will be out-of-town or unavailable when significant real-estate documents need to be signed
- you live far away from the property which you own & you want someone else to manage it in your absence
- you will not be available to look after your real estate for the period of time
Why Should I Prepare a Real Estate Power of Attorney?
If due to some reason such as ill-health, staying abroad or due to some other enthralling circumstances person, in whose name property is, can’t present himself before sub-registrar for the execution of the registration, he can appoint somebody to act on his behalf & complete execution legally. His act will be measured as if it has been done by the principal himself.
What Is contained in a Real Estate Power of Attorney?
Generally, the power of attorney for real estate mentions the date & place in which the document is prepared. This document also contains the name, address, age, etc. of the principal & attorney holder. The endeavour will mention what power is delegated by the principal to the attorney holder. There can be a general or special power of attorney. The general power of attorney offers sweeping power to attorney in various situations & all types of transactions. The special power of attorney is one in which consent is given for some limited actions like bank transactions, receiving of rents, etc.
The real estate power of attorney is used to provide power for various different kinds of real estate transactions. This document is usually for single or multiple transactions. It is required when a real estate owner is incapacitated to do the job himself for any reason. The power of attorney can be given to the property management company as well. The life of power of attorney is terminated if the principal wishes so or it might continue for an indefinite period.