What is a Power of Attorney?

A Power of Attorney or POA is a document granting one person written authority to legally act on behalf of someone else.  POA's can be used in real estate transactions when one party (buyer or seller) cannot attend the closing.  A third party can be given POA to sign the closing documents on behalf of the absent party.


POA's can also be drafted and executed in preparation for the future incapacitation of the party granting the POA.  This type of POA is called a Durable Power of Attorney.  Many people will execute a Durable POA prior to an upcoming major surgery or when they are concerned about the onset of Alzheimer's or other incapacitating disease. Durable POA's are often executed in conjunction with a Living Will.

A Power of Attorney can be either General or Limited.  A General Power of Attorney grants permission for the agent to act on behalf of the principal in all matters in general.  A Limited Power of Attorney grants permission for the agent to act on behalf of the principal in a defined matter or set of matters.  Read my post on Agency for more information on the rights and responsibilites of an agent.