Preparation is important if you plan to use a power of attorney to close your property. A few aggressive steps can prevent delays, from ensuring that they are legally valid under state laws, to coordinating with the title company and selecting the right agent. Below are three important tips that all sellers should know:
Whether you’re selling your home in Miami, Florida, Los Angeles, California, or Denver, Colorado, this Redfin guide explains how to use a power of attorney for closing your property, why sellers rely on it, and the key steps to make sure it’s done correctly.
What is a real estate power of attorney?
A lawyer (POA) is a legal document that can allow you to act on your behalf in a real estate transaction, depending on state law. In reality, this usually means that an agent can do it.
Sign the signature and closing documents and close to your location Details of transactions that require signature
POA seller types are commonly used
Limited or Special POA: allows agents to handle certain real estate sales that are often associated with legal descriptions of their homes. Durable POA: In some states, durable POAs may remain active even if they are not durable. This is especially useful for older people and sick sellers.
When POA makes sense
Live out of state before closing overseas, move before moving, faces attending schedules and medical restrictions that hinder closures and conflicting deployments with closures before deploying for work, travel or deployments
>>Read: Should sellers be present at the time of closing?
3 Tips for Using a Power of Attorney on a Closed Day
For sellers who cannot meet in person, the power of lawyers (POA) can be a valuable tool. Still, success depends on meeting strict legal requirements in your state and planning ahead. We recommend consulting with an attorney to ensure that the POA is suitable for your needs and is acceptable upon closing.
1. Make sure your POA meets all legal requirements
To be accepted, POAs generally need to meet certain requirements.
If an agent specifically signs an act, disclosure, and closure document, if the agent signs it, it records that it is written, signed and notarized (in some states, asking for a witness) and recorded in the county.
Pro Tip: Before closing, we recommend sending POAs to title companies and lenders for reviews.
2. Beware of common risks and challenges
Even if the POA is in place, sellers can still encounter obstacles. Knowing common risks in advance can help you avoid surprises.
Lender and Title Limitations: Some people reject pores or request their form, but they request invalid documents: Errors, outdated language, or missing fraudulents can invalidate the risk of fraud: Your agent must be absolutely reliable timing delay: the original may be mailed overseas or submitted to the county
3. Prepare early and adjust for smooth closure
A well-prepared POA can make all the difference on closing days. Follow these steps to continue moving forward with sales without interruption.
Start early: Don’t wait until the week of coordinates with your agent and title company until the week of closure, do not confirm the use of closure with your agent and title company to ensure that you use limited PoA tied to the legal explanation of your property, follow the specific requirements of your state’s notarization and witnesses Choose wisely: Choose a trusted family, lawyer, or best friend
Pros and cons of using a power of attorney
Using the power of a lawyer to close a property is convenient, but there is a risk of legality, logistics and trust. Sellers should weigh these advantages and disadvantages before using one.
The advantages of using a power of attorney
If we are unable to attend the closure, we will keep the sales moving. It gives flexibility for sellers who cannot attend state, internationally or medically. Delegating signature authorities in some states can save you time and travel expenses.
Cons of using a power of attorney
Some lenders and title companies may reject or strongly limit the risk of use of POAs that are invalid if the selected agent does not require any additional steps to be trusted, and if they do not approve or correctly record the risk of fraud: notarization, witness, recording, lender approval
Alternative sellers should consider
Using a POA does not fit all sizes. It is worth considering the best alternatives for your requirements and needs.
Remote Online Notarization (RON): Digitally signed via video with a notary, if permitted by state email.
>>Read: Can I close the house Remotley?
Create a POA for closing days
For sellers who cannot attend on closing days, a carefully prepared power of attorney is extremely useful. Choose a reliable POA and ensure accurate language, proper notarization, and early approval from the title company and lender to avoid delays.
FAQ: Use a power of attorney to close your property
1. If I change my mind, can I cancel my POA before closing?
In many cases, the power of attorney can be revoked in writing as long as the grantor is competent (often requiring signatures and notarization). Notify all parties to avoid closure issues.
2. What if my POA is not accepted by the buyer’s lender?
If the lender rejects the POA, the agent will not be able to sign the loan document. You will need to attend the closure, offer new POAs, or find alternative solutions for lenders and title companies.
3. Does my agent under the POA have the authority to negotiate terms or to sign documents?
The scope of a POA depends on the language. Limited pores are for document signing, but broad or durable pores may involve contract negotiations. To avoid problems, legal guidance clearly defines the power of an agent.
4. Does using POA slow down the closure process?
Early preparation and approval of the original POA document can prevent last-minute termination delays caused by non-compliant POAs, which may require title companies and lenders to post, record, or review.
5. If you sell multiple properties, do you need a separate POA for each?
Usually, yes. The POA must be property specific and often requires legal explanation. Usually selling multiple properties means each individual POA to prevent closure issues.
