What is The Real Estate Power of Attorney?
A power of attorney is the rights and powers handed to individuals by the laws of the state to appoint someone to make legal and financial decisions for them in their absence or the in the event that they become incapacitated and are no longer in a position to make these decisions themselves.
If you are nearing old age or travel out of the country often, you need to select somebody to represent you as far as your real estate properties are concerned. Essentially, you need a real estate power of attorney. In this article, we will be reviewing all you need to know about a real estate power of attorney.
It is especially useful if the principal is usually too busy, lacks expertise in dealing with real estate transactions or travel too often. It is also called Real Estate POA and power of attorney for real estate.
A real estate power of attorney can be durable or non-durable. Durable in the sense that it remains effective and valid after mental or physical incapacitation of the principal. A real estate power of attorney is non-durable if the powers of the agent become void upon incapacitation of the principal.
When to Use a Power of Attorney for Real Estate?
There are a wide range of situations where a power of attorney for real estate might come in handy. Here are some of them:
- If you travel very often and are mostly unavailable when there is a need to sign really important real estate documents
- You reside quite far from your real estate property and need someone to manage it in your absence
- You will be available for a period of time and need someone to manage your property in that time frame
If you need a power of attorney for your real estate only, it is advised that you limit the powers of your agent to real estate only. In other words, go for a power of attorney for real estate instead of a general power of attorney. Although the latter is equally valid, you do not want your documents cluttered with unnecessary information and lots of powers you are not willing to grant your agent.
With a real estate power of attorney document, you can clearly specify what powers you are granting your agent.
Why Is a Power of Attorney for Real Estate Important?
There are a host of reasons why you should consider preparing a real estate power of attorney. These are some of them:
It is required in some states that the handling of real estate properties are done only by experts and individuals highly knowledgeable about real estate. There is the likelihood that you are not this person. It is therefore more reasonable to select someone more fitting to manage your real estate properties.
Terminal illness and incapacitation
With terminal illness and mental incapacitation comes the potential for an individual being not able to make good judgments or decisions. This can produce an adverse effect on the kinds of decisions he/she makes. In the event that you become mentally incapacitated and can’t make certain decisions for yourself on your properties, a real estate power of attorney document can come to your rescue.
Who should I pick as my attorney?
The first consideration you should be making is that this agent has your best interests at heart. In addition to that, the agent must be capable of managing your real estate affairs well, must have the capacity to execute all the responsibilities conferred with aplomb.
When does a real estate power of attorney expire?
It would generally expire on the day specified on the real estate power of the document. Otherwise, it is no longer valid when you pass away or become incapacitated.
Who can prepare a real estate power of attorney?
In most states, you can draft one once you are above 18 years old and are mentally sound.
There are so many reasons why you might need a real estate power of attorney. It is a good insurance against emergencies and casualties and might come in handy much later in your life. If you want to fill one, download any of CocoSign’s real estate power of attorney forms for free to get started.
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