We understand how frustrating it can be to search for a home in Austin. Half the battle is learning the key terms and what they mean in regards to Texas real estate. So each week we bring you Key Term Tuesday – our way of helping you decode the industry jargon that keeps you from owning your home search.
What is a Power of Attorney?
A power of attorney (POA) is a document that names a person or organization to manage the affairs of another person should that person become unable to do so. A common use of a POA is in residential real estate happens when a necessary signer of the contract is out of time at the time of signing.
We call the person who receives the power to make decisions for another an attorney-in-fact. There are several different types of power of attorneys and each type gives your attorney-in-fact a different level of control. One type often used in estate planning is called a General Power of Attorney which gives broad control. In real estate transactions, a document called a Limited Power of Attorney gives very specific and limited power to one person acting on behalf of another as in situations where a buyer might be out-of-town at the time of signing. As a practical matter, get legal advice to understand the ramifications of a POA before doing so.
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