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Power of Attorney to Sell Property: How to Set It Up and Make Sure It’s Honored
Power Of Attorney To Sell Property: How To Set It Up And Make Sure It's Honored
When a power of attorney is set up for an individual, most people think it pertains only to controlling a person's money or making healthcare decisions. While these are certainly important aspects of power of attorney, there is also a selling with a Power of Attorney in Real Estate.
Often used when a real estate transaction needs to be completed on behalf of another individual, it is crucial this be set up correctly and honored by those given this legal authority. If you have questions about this, keep these tips in mind.
Why is it Necessary?
In most cases, a real estate power of attorney is necessary for two primary reasons. First, either the property's buyer or seller may live far away and not be present for the selling of the property, thus allowing another individual to complete the process. This is the case for many absentee owners, and also for individuals selling a home while incarcerated.
Second, and often a much more common reason, is due to the property's seller being deemed incompetent or unable to handle their own business affairs either due to age or illness.
Specific and Durable
While a financial power of attorney is often general, meaning it gives the person in charge authorization to take care of many aspects of another individual's personal business affairs, the power of attorney to sell a house should be very specific to only that transaction.
In addition, it should be a durable power of attorney, meaning it will take effect or remain in effect upon a person being deemed incompetent. When setting this up, remember that a person already ruled to be incompetent is not allowed by law to authorize a power of attorney.
Who Can be Granted Power of Attorney?
As for who can be granted power of attorney, it can be any individual the person trusts will handle their affairs in the manner they wish, such as a family member or close friend. In situations where a person may be deemed incompetent, a court may sometimes step in to decide who will be given this important legal authority.
Is an Attorney Needed for this Process?
No. In many cases, a real estate power of attorney can be set up without involving an attorney, since the forms to complete the process are often easily found online. However, state laws can vary, and this power of attorney to sell a house will have many complex issues associated with it. It is recommended you have an attorney look over your paperwork or handle the process for you to ensure no legal complications arise.
Don't Create it Too Soon
Finally, if creating a power of attorney to sell a house is necessary, make sure it is done as close to the actual transaction as possible. In fact, experts recommend these agreements be no more than three years old at the time of the transaction. Otherwise, those involved in the closing process may be wary of its validity.
If you possess a real estate power of attorney and need to sell a property quickly, contact Flash Realty Solutions to get a no-obligation quote for a cash offer on your home.