What Is a Real Estate Power of Attorney (POA)?

A Power of Attorney (POA) in real estate is a legal document that allows one person (the agent) to act on behalf of another person (the principal) to sign documents, manage property, and complete real estate transactions. It is commonly used during estate planning, incapacity, or when a property owner cannot attend closing.

Power of Attorney: Simple Definition

A Power of Attorney in real estate is a legal authorization allowing an appointed agent to sign contracts, closing documents, deeds, or other real estate paperwork on behalf of the property owner. The agent must act in the principal’s best interest and follow the terms outlined in the POA agreement.

Why People Use a Power of Attorney in Real Estate

A POA is commonly used to:

  • Sign closing documents when the seller or buyer cannot attend in person.
  • Manage property if the owner is elderly, traveling, or incapacitated.
  • Handle estate planning matters involving property transfers.
  • Sell inherited property on behalf of multiple heirs.
  • Avoid delays in contracts and time-sensitive transactions.

Types of Power of Attorney Used in Real Estate

  • General POA — broad authority to act on behalf of the principal, including managing real estate.
  • Durable POA — remains valid even if the principal becomes incapacitated.
  • Limited (Specific) POA — used for one-time actions such as signing closing papers.
  • Springing POA — becomes effective only under certain conditions (e.g., incapacity).

How a Power of Attorney Works in Real Estate Transactions

When a POA is executed, the agent may sign real estate documents on behalf of the principal. Signatures typically appear as:

"John Doe, as Attorney-in-Fact for Jane Doe"

The title company or closing attorney must review and approve the POA before closing to ensure it is legally valid and properly notarized.

Does a Power of Attorney Apply After Death?

No — a Power of Attorney automatically expires upon the principal’s death.

After death, authority transfers according to the person’s will, trust, or through probate.

This is why POA is used for lifetime authority, while deeds, wills, and trusts control property after death.

POA vs. Other Forms of Real Estate Authority

A POA differs from other real estate documents:

  • POA: Allows someone to act on your behalf while you are alive.
  • Will: Controls property distribution after death.
  • Trust: Holds and manages property during life and after death.
  • Deeds: Transfer legal ownership of real property.

Each tool plays a different role in real estate and estate planning.

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