Power of Attorney

In depth

A power of attorney (POA) lets the agent sign deeds, contracts, and other documents binding the principal. POAs can be limited to specific transactions or general, and may be durable (surviving incapacity) or springing (effective only on a specified event). Misconception: a POA does not transfer title; it only authorizes someone else to act for the principal. Practically, in FSBO and seller-financed transactions, POAs are common when the seller is out of state, ill, or otherwise unavailable. Title companies have specific requirements: original POA, recent execution, notarization, and sometimes recording. POAs terminate at the principal's death, so deaths between signing and closing void the agent's authority. Always confirm the POA is current.