Do you need a power of attorney? Let’s see.

By Your Real Estate Dude

There are times when a power of attorney can keep an escrow going that would otherwise come to a halt. But perhaps we should start by explaining what the heck a power of attorney is in the first place. Not being an attorney myself, I will give you the “average joe” description of a power of attorney and maybe we can sweet talk the Lawyer Dude into explaining it more clearly later. For the moment let’s just say that a power of attorney is used to give permission for one person to sign for another. For example: I might sign a power of attorney giving my wife the power to sign my name to documents if it were difficult for me to sign for various reasons. She would then be able to sign documents and make agreements for me. So how is this useful in real estate?

There are many circumstances in which a power of attorney can be very useful. Here are a couple of examples:

Recently, I represented sellers who used a power of attorney to complete the escrow in the sale of their home. During the escrow the wife became quite ill and had to be hospitalized. I made trips to the hospital to go over various documents with them, but it became very clear that this was a tremendous strain on her. During one of my visits I suggested that she sign a power of attorney so that her husband could take care of the paperwork and she could get some rest and concentrate on getting well. Frankly, she was feeling miserable and was overjoyed at the prospect of not having to sign or fill out any more paperwork. She signed a power of attorney that day. Her husband took care of the escrow, the doctors took care of her and I was able to take care of some running around for him so he was able to spend time with her doing something other than signing paperwork.

I have represented military families on many occasions. Quite often one of them is on deployment, out to sea or otherwise unavailable for signatures. In one particular case I showed homes to the husband who took pictures which he emailed to his wife who was out to sea. When we found a home that both of them liked, I drafted an offer which he signed using a power of attorney. The offer was accepted and escrow closed without his wife ever seeing the house in person. When she returned from deployment, I visited the couple. To be honest, I was kind of worried that she might be disappointed having only seen the house in pictures to that point. She was not! She loved the place. Yet another instance in which a power of attorney made things possible that otherwise may not have been.

If you’re in a situation in which one of you is unable to deal with the paperwork, a power of attorney may be the way to go. But, let’s not forget that when you sign a power of attorney you are giving someone else the right to make legal commitments for you. So, before you sign make sure you have talked to a good lawyer and gotten the advice you need.