Power of Attorney

Heading on vacation during your closing? Have a medical procedure scheduled and know you won't make it in to sign? Work sending you out on a last-minute business trip?

If you're in any of these scenarios, you're probably worried about what you're going to do about signing at closing. 

We all have busy lives with work, family and travel - throw a home buying or selling process into that mix and it can get a little hectic! That's what the Power of Attorney, or POA, is for. 

A power of attorney is a document between two parties in which one party grants the other broad power to act on their behalf. This power can be for a number of things, including signing during a real estate closing. 

In a POA transaction, the person granting the power is called the principal, and the person receiving the power is called the agent or attorney in fact. The agent will act on behalf of the principal within the circumstances noted in the document. An attorney in fact does not have to be an attorney - it can simply be a relative, friend, or anyone the principal trusts to act on their behalf. 

Powers of attorney are a great option for buyers or sellers who can't be present at closing. An agent can be designated to arrive at the closing and sign on the principal's behalf. All they would need is their photo ID and a strong and steady hand - because they will be writing a lot! (Every signature from a power of attorney must be signed "Agent's name as attorney in fact for Principal's Name," so you may want to tell your agent to be ready!) 

But besides real estate closings, a POA can be beneficial in other legal situations, and there are several types of these documents: 

General 

A general power of attorney is used to allow your agent to handle your affairs during a certain period of time, such as when you are traveling. 

Powers can include any or all of the following:

•  Buy and sell property
•  Buy, manage or sell real estate
•  Handle banking transactions
•  Enter safety deposit boxes
•  File tax returns
•  Tend to government benefits
•  Enter into contracts
•  Purchase life insurance
•  Settle claims
•  Exercise stock rights

Additional powers that can be added in the document include maintaining business affairs, making transfers to revocable living trusts, hiring professional assistants and making gifts. 

Durable

In a durable POA, the term of the power granted to the agent is specified. For instance, if the principal was to become mentally incapacitated or physically unable to communicate their wishes, this document would specify that the agent does or does not continue to have the right to act on the principal's behalf. 

All powers granted in a general power of attorney can be given in a durable one, but stipulations are included regarding the health of the principal. 

Special/Limited 

A special power of attorney grants limited or special power to the agent. This is typically done if one party cannot handle certain affairs because of prior commitments or health reasons. Common powers specified in a special power of attorney include buying or selling real estate, managing business interests, and handling bank transactions. 

Health Care

In a health care POA, the agent is given the power to make medical decisions for the principal if they are unconscious, mentally incompetent or physically unable to communicate. The document can go into effect immediately or when the principal is determined mentally incompetent, based on the principal's wishes. A health care POA does not constitute a living will; however, the State of Georgia allows the principal to state their wishes in a POA regarding medical treatment in conditions such as terminal illness and permanent unconsciousness. 

Trust Factor

With all POA's, trust plays an important role. Major powers can be given to an agent, so it is imperative to choose someone who will look out for the principal's best interests, respect their wishes, and not abuse their power. 

LegalZoom also notes that an agent should be organized and responsible and keep records of all transactions they have done on the principal's behalf.  Legally, an agent is not held responsible for anything done unknowingly, but can be held for any intentional misconduct. 

Overall, a power of attorney can be used for any number of legal or personal activities and may be perfect for a buyer or seller closing on a property. If you need a POA for a closing here at Perrie & Associates or for any other matter, just let us know and we'll be happy to help you draw up the appropriate document for your needs! 

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Perrie & Associates, LLC is a full-service law firm centered around real estate property. We strive to provide big firm expertise with small firm concern for your interests. We are committed to focusing our legal expertise to provide you with the highest quality services in a timely and cost efficient manner. The attorneys and team members of our firm take great pride in providing the right solutions to our clients' needs. Give us a call to schedule a closing or for legal consultation!