Posted by: Robin Gronsky | December 3, 2012

Buying or Selling a Home Using a Power of Attorney

There are any number of reasons that all of the sellers or all of the buyers are unavailable to sign all of the documents that are required in a real estate transaction.  The typical solution is to have the person who is not available to sign documents to create a Durable Power of Attorney appointing the person who is available as the agent of the unavailable person.  What do you need to know if you intend to use a Power of Attorney?

The Power of Attorney document must be approved by the title insurance company.  They may have a form of Power of Attorney that they want your lawyer to use or they may just ask that your lawyer draft the document and send it to them for their review.  Typically, the title insurance company will require the exact property address of the real estate that you are buying to be stated in the Power of Attorney.

If you are the buyer, and applying for a mortgage, your lender may have additional requirements – adding in the name and address of the mortgage company, the amount of the mortgage, and the loan number.  They may also insist that their underwriting department approve your form of Power of Attorney.

I also draft my Power of Attorney forms to be “durable,” meaning that the document is still in effect even if the person who is the principal becomes incapacitated in some way (illness, injury, old age, or maybe an accident).  Finally, the Power of Attorney must be drafted so that it can be recorded (which the title insurance company and lender will require).

You will have many questions when you buy or sell New Jersey real estate.  If you want a lawyer who will answer your questions, please call me at 201-251-8001 or email me at RGronsky@Gronskylaw.com.

 

 

 

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