Pennye’s 2 Cents – Powers of Attorney
My name is Pennye Putman and here are my TWO CENTS on Powers of
Attorney for the sale or purchase of a home or property:
As the title company, we need to review the POA. We need to be sure it was
executed properly and that it has all of the proper verbiages in order to sell,
convey, purchase, or encumber real estate.
Second, we need to know why the POA is necessary to close the transaction.
If the principal just wants to stay home across town to pack and give a POA
to someone to sign documents that would be a big NO. If the principal is
deployed then that would be a great reason to give a POA. We and our
underwriters feel that if the principal is local and are capable of signing a
POA then they are certainly capable of signing their own closing documents
and this makes for a much cleaner closing.
Third, we will need to speak with the principal. We have an ethical duty to
be sure the principal knows, for example, that their home is being sold or
being encumbered (especially in the case of an elderly person).
Last, if we need to prepare the POA, a title company can only do so if it is
necessary for the issuance of title insurance. We can’t prepare a POA for a
listing agreement or to sign loan documents for instance.
Remember, most say a Pennye for your thoughts… I hope my thoughts gave you something to think about because these are my TWO CENTS for today.