Reasons to Use a Power of Attorney for Real Estate Transactions

Real estate transactions generally have two entities: the buyer and seller — three if you count the agent.



Sometimes, the person who wants to buy or sell the property may not be able to sign the documents. If that happens, they will usually have a POA or power of attorney for real estate transactions drawn up.

Let’s learn more about this important legal document and the instances when you might need one.

What Is the Power of Attorney for Real Estate?

A power of attorney is a written legal document that gives someone the authority to conduct specific real estate transactions on your behalf. The person granting the authority is usually referred to as the principal, granter, or donor while the person who is granted the authority is the agent or attorney-in-fact.



This authority can extend to the buying, selling, managing, and refinancing of properties. Once the written document has been signed and executed, all decisions by the agent will be legally binding.

Why Use the Power of Attorney for Real Estate Transactions

There are many situations when a power of attorney for a real estate transaction comes in handy. Medical issues, work commitments, and travel plans can all make it difficult for the buyer or seller to be physically present when finalizing a real estate deal.



A power of attorney for real estate transactions ensures that the transaction can still be pushed through by empowering a trusted individual as one’s representative. Based on the needs and degree of responsibilities given, there are three types of POAs:

• Durable power of attorney: Valid for the principal’s lifetime or until the principal revokes the POA
• Limited power of attorney: Granted for a specific duration or purpose
• Springing power of attorney: Comes into force should the grantor find him or herself incapacitated. 

By enacting the POA that corresponds to your needs, you can have someone perform real estate transactions on your behalf with specific conditions and limits, including how long it takes effect.

When Is It Proper To Use a Real Estate Power of Attorney?

POAs must not be used as a matter of convenience. In most cases, the documents for real estate transactions can be mailed to the principal’s address. However, in situations when time is of the essence or there are physical or health constraints, it may not be possible to get the principal’s signature on contracts and legal documents.

The power of attorney can thus be used when the principal is unable or incapable of attending to the drafting of the sales agreement or title closing. The sales agreement is when a legally binding contract between the buyer and seller that clarifies the terms of purchase is established. Meanwhile, title closing is when open issues like inspections and repairs are discussed before a sale is finalized. 

Here’s the Deal



Routinely using a power of attorney for real estate transactions is frowned upon, especially if there isn’t a legitimate need for it. When it is justified, the agent must produce the legal document to prove that they’ve been granted the appropriate authority to transact on behalf of the principal.

What Should the Real Estate Power of Attorney Include?

For the power of attorney document to be legally valid, it must include:

• The date when it was executed
• The identities of the parties involved — namely, the principal and agent. Note that the principal can also appoint a secondary agent should the first be indisposed.
• The scope of authority and validity. The principal can limit authority to a certain transaction, duration, and other similar conditions. It’s also possible to execute a POA that only takes effect when the principal becomes incapacitated.
• The principal’s signature which has been notarized or signed in the presence of two witnesses

To execute a valid POA, the principal must be:

• At least 18 years of age
• Of sound mind
• Cognizant of the asset value and authority they’re entrusting to their agent

While a power of attorney for real estate transactions can be convenient, it can also be abused by the agent. This is why these guidelines have been introduced and certain limitations are enforceable through the document.

How To Find a Qualified Lawyer To Create a Legally Binding POA for Real Estate

Real estate transactions involve a lot of legalities. This can be challenging for the average person which is why it’s always best to consult a lawyer who specializes in real estate transactions. 



When you engage a real estate lawyer for your POA, you get the advantage of their extensive knowledge regarding state and federal regulations. They can also help you create a will, find ways to reduce and avoid taxes, choose inheritors, and safeguard your assets. 

That said, if you’re looking to have a POA drawn up, you must find the best professional for the job. Recommendations from family, friends, and acquaintances are an excellent place to start your lawyer-hunting process. 

Here are a few tips when searching for a good lawyer for your POA and real estate assets:

Look for Real Estate Expertise

Look for a lawyer who has specific experience and knowledge in real estate. Real estate lawyers keep themselves updated about corresponding changes in legislation. 



Make sure to also choose a legal professional who has dealt with POAs in the past. While this does not guarantee success, it’s a good indicator that they’ll be able to handle issues that may arise and provide valuable guidance during your real estate transaction. 

Check Reviews

Reviews can be very telling about the type of services an attorney can offer. A quick Google search is all it takes to get intel on what it’s like working with a particular attorney. By checking reviews, you can be in a better position to gauge lawyers’ competencies and ability to professionally handle real estate deals.



Once you’ve narrowed down your options, sit down with your prospective lawyer to further evaluate their qualifications. Ask them how long they’ve been practicing real estate law and their success rate in dealing with contracts. 

Contact KY Lawyer

Our team at KY Lawyer can provide counsel, review the title, ensure it has no pending encumbrances, resolve property disputes, and prepare sales documents for seamless and easy real estate transactions. We can also execute a power of attorney for real estate transaction according to your needs.

Led by Nathan D. Williams, the firm is recognized by Super Lawyers Magazine, the Kentucky Justice Association, and the American Association for Justice. Whether you need help with estate planning or a specific real estate transaction, KY Lawyer has the knowledge, skills, and experience you need.

Contact us for a free consultation.

Bahe Cook Cantley & Nefzger:

Nathan D. Williams, a partner and attorney for Bahe Cook Cantley & Nefzger, is honored to be selected for inclusion in the prestigious Super Lawyers magazine. The achievement highlights our firm’s commitment to excellence and our dedication to serving and protecting the rights of our clients whether it be personal injury, auto accident cases, product liability, medical malpractice, toxic exposure, trusts and estates planning, business law, criminal law, and insurance law cases. We’re also members of the Kentucky Justice Association so we’re empowered to improve the legal representation of Kentucky citizens. 

To learn more about how we can help you, contact us for a free consultation. You can also call us at (270) 789-0088 or drop by our office at 1510 East Broadway Street, Campbellsville, Kentucky.