Real Estate Power of Attorney Form
The real estate power of attorney is a document that provides the principal an opportunity to hand over the authority towards making real estate decisions on their behalf. The property which can fall under the form’s terms may be commercial or private. It is a type of a limited POA, and It includes transferring such rights as mortgaging, buying or selling, managing one’s property, etc.
The essential distinctive feature of this exact form is that it can be made non-durable or infinite depending on the principal’s will.
The principal — an individual who desires to create a power of attorney and give someone the right to make decisions regarding the real estate on their behalf.
The agent (attorney-in-fact) — an individual who is chosen to make the real estate decisions on the principal’s behalf.
Reasons for Authorizing a Real Estate Power of Attorney
The principal may establish the real estate form of attorney to hand over the responsibility of managing their estate for a specific time range because of:
durable absence in the state or country of estate location;
inability to serve the real estate due to the illness or prison sentence;
desire to warrant their estate in case of becoming incapacitated, etc.
The possible powers to hand over:
manage the real estate, hire workfolk, make repairs;
establishing insurance for the estate;
marketing, presenting, exchanging the estate;
buying, receiving, leasing the estate, etc.
These actions are specified in the form and can be complemented in detail by others the principal wants to transfer.
How to Establish a Real Estate POA
Stage 1 – Specifying the Rights and Duration
Firstly, the principle should determine the powers to handle another person. Since the form is designed to provide the rights of ranged number and specificity, the initiator of the document assignment should formulate the chosen powers as clearly as possible in advance.
Secondly, the principal should define for how long they want the form to exist. The choice between two options is provided:
The non-durable forms are frequently chosen for distinct actions (such as selling or purchasing the estate). After completing the bargain, the form will stop its effect. In this case, the form will withdraw after the end of the action or when the principal becomes disabled.
The durable POA form is established for the case when the empowered actions are predicted to be regular.
Stage 2 – Choosing the Trustworthy Agent
In the case of the real estate power of attorney, the agent can be an individual and an organization. However, if the attorney-in-fact is going to be a person, there exist a few restrictions on their empowerment. The agent must be an adult person with experience in real estate trading or managing. A similar rule applies to the entities too.
Ensure the agent is ready to hold the given authority and manage to complete the assigned task.
Stage 3 – Signing and Spreading the Finished Form
After completing the previous stages, the principal can proceed to filling and signing the form. The form should be assigned not only by the principal but also by the attorney-in-fact and the notary (if the state legislation requires it).
After finishing the form creation, the principal needs to provide a copy of the document to the agent and other receivers, if needed. The agent will have to show the copy in further transactions.
The comprehensive instruction on how to complete the real estate POA and a sample form is provided below. Remember that a document is governed by the laws of the jurisdiction where the matter takes place.
How to Fill a Real Estate Power of Attorney
In the first section of most valid POA forms, the principal needs to write the personal information of the principal and the agent. It includes their full printed name, the state, city, and street of dwelling.
The second section provides the list of possible rights empowered to the agent. Note that the number of options to choose from is from at least one to four! Near each preferred option, the principal leaves their initials and ticks the box. Inside the block with an option, there are empty lines, where one includes the full address of the real estate and the official description of the property (for all rights, they want to transfer to the agent).
In the following section, one specifies the terms of the form withdrawal. There are three options available, but the principal must choose by ticking and leaving initials only one of them. If choosing the first option, one should also enter the particular date of the wanted withdrawal. The second option lets the agent act on behalf of the principal until the latter’s death or creation of the form of revocation. The last variant leaves the powers to the agent only if the principal can make conscious decisions independently (until becoming incapacitated).
In the following empty line, write the name of the state where the property is placed.
The following section requires the date of signing the document, the principal’s signature, and printed name, respectively. Following the state legislation, the form must be signed in the presence of at least one witness or be notarized.
The last section is dedicated to the agent. It is an optional field. However, if the agent signs the form, it demonstrates their responsibility and understanding of participation in creating the document and its consequences. If so, the agent should leave their signature and printed name.