Power of Attorney When Buying or Selling Real Estate
Authorizing Somebody Else to Act on Your Behalf
A power of attorney is the term used for an express authorization allowing somebody else to act on your behalf for a specific purpose. A power of attorney can be as general or as specific as the person creating the authorization wants and can allow somebody to make healthcare, financial, and other decisions on their behalf.
One common use for a power of attorney is in the context of a real estate transaction. The main use for a real estate power of attorney is to allow somebody else to execute, or sign, documents on behalf of a buyer or seller who is not present at the time of conveyance (or transfer) of the real estate property.
For example, if a Seller has moved to another state but is selling property in Connecticut, they may want to authorize a family member or their attorney to sign the deed transferring title on their behalf. A Buyer who is not present for a closing, for example if they are on active duty, can authorize a family member or their attorney to sign the mortgage and other loan documents on their behalf. Even entities such as corporations or LLC’s can authorize an individual to act on their behalf for the purpose of executing closing documents.
Whenever the use of a power of attorney is being considered, an experienced real estate attorney should be involved. The power of attorney must contain certain terms and be drafted properly, and then needs to be executed in a certain manner, to be compliant with Connecticut General Statute subsection 47-5. The deed will also need to be recorded on the land records in proper order, or the documents executed under that power of attorney will not be enforceable. Finally, an authorized individual under a power of attorney signing documents on behalf of the buyer or seller must sign in a specific way. An experienced Connecticut real estate attorney can make sure a power of attorney is drafted, signed and recorded properly and direct the authorized agent on how they must sign documents.
At G&G Law, LLC we draft Connecticut compliant power of attorney authorizations for our real estate clients, and will even act as power of attorney, at no extra cost if they are hiring us as closing agents to buy or sell property. We can also draft power of attorney authorizations for all other clients for a fee. If you need our assistance please call us at 203-906-9622.