Sellers and buyers frequently need to use a Power of Attorney in the closing of a transaction. Limited Powers of Attorney for sale (LPB form number 70-05(1)) and to purchase/encumber (LPB form number 71-05(1)) can be prepared by Limited Practice Officers. These two forms, when properly prepared, executed and acknowledged are sufficient for their specific purposes.
Particular care should be taken if the parties want to use forms other than these two LPB forms. In some cases, the parties may have previously prepared Powers of Attorney that they may want to use in the transaction. If this is the case, the document must be approved by the title company prior to the closing. The title company will review the document to be certain the powers given are sufficient for use in the transaction. Also, if the Power of Attorney is older, the title company may ask for confirmation from the principal that it is still in full force and affect.
The Power of Attorney will be recorded with the other closing documents and returned to the parties by the county.
Keep in mind that a personal representative, corporate officer or other fiduciary can not give Power of Attorney without specific authority to do so.
It is always a good idea to anticipate that everyone necessary to close the transaction is going to be available or that appropriate Powers of Attorney exist.
Filed under: Buying a Home |