A power of attorney gives someone the authority to act on your behalf if you are unable to act on behalf of yourself. There are different types of powers of attorney for different situations that a person foresees themselves in. Let’s discuss a few different types of powers of attorney and determine which are best for real estate transactions!
Types of Powers of Attorney:
1. Durable Power of Attorney
This type of power of attorney is the most common. The person assigned as the power of attorney will oversee various financial and medical decisions on your behalf if you are incapacitated in some way. This means they can take care of everything, including banking information, selling of property, utilities, and more.
2. Limited or Specific Power of Attorney
Limited and specific powers of attorney are also available if you just need one for a certain transaction. In this type of agreement, you will specify what powers you want to grant and what decisions someone can make on your behalf. Lenders prefer this type of power of attorney for buyers in a real estate transaction. Lenders want it to be very specific to the transaction, the property, the lender, and the loan amount.
3. Healthcare or Medical Power of Attorney
This type of power of attorney is where you authorize someone the ability to make medical treatment decisions on your behalf.
Not all powers of attorney can be used for real estate transactions, such as the healthcare or medical power of attorney. There are also statutes that talk about different requirements for a power of attorney and what makes them valid in the state of Florida. We suggest that you check with your title services agency, your lawyer, and your lender when figuring out what power of attorney will work for your real estate transaction.
If you need a power of attorney, we’re happy to draft one for a real estate transaction we’re closing. If you already have a POA, we can look over it to make sure it meets Florida statutes.
If you’d like to learn more about powers of attorney and how to use them in real estate transactions, listen to our Let’s Talk Title Podcast episode that dives deep into using a POA.