What is a power of attorney in real estate?

A power of attorney in real estate refers to a legal document that authorizes one individual to act on behalf of another in legal matters, including real estate transactions. This document is essential because it allows the appointed person, known as the agent or attorney-in-fact, to make decisions regarding the management, sale, or purchase of real property while the principal (the person granting the power) is unable to do so.

In situations such as being out of the country, incapacitated, or otherwise unavailable, having a power of attorney ensures that transactions can proceed without delay. The scope of powers granted can be general or specific, depending on the needs of the principal, which adds flexibility to the real estate transaction process.

Understanding the role of a power of attorney is crucial for real estate professionals, as it can significantly impact how transactions are conducted and the authority of persons involved in those transactions.