POWER OF ATTORNEY - LIMITED
This document grants the authority to act only for a specific purpose.
It is often used in real estate transactions, although it could be used in other applications.
Spouses often grant each other LIMITED POWER OF ATTORNEY to transact the business of real estate. Sometimes employment responsibilities cause one spouse to relocate … leaving the other to sell their present home. Sometimes one cannot leave and the other must go ahead to the new location and find a home. In either case, one is left to sign for both.
Spouses may already have a General Power of Attorney to act for each other. But some lending institutions and title companies are fussy. They require a LIMITED POWER OF ATTORNEY which names the specific property. The safest route is to execute a Limited Power of Attorney for both the property you are selling and the property you wish to buy. It doesn't take long to fill out the form and could save you from a last minute panic.
Some landlords could also require that the power of attorney be specific to their property. Ask before you assume that your General Power of Attorney will suffice when time to sign a lease.
The Power of Attorney is useful for more than the loan closing or finalization of a lease. In real estate time is of the essence … and sometimes documents must be signed when you are not available. This is when a trusted person is given LIMITED POWER OF ATTORNEY to act on your behalf. It might be a relative or partner, or even your attorney
This form, which is available as a free download from this site, clearly spells out the authority being extended. To execute this form you need the full legal description of a property or properties. You then grant specific authority.
For instance: you may grant someone power to negotiate and approve the purchase price. You may appoint them to review the property inspection report and either remove the contingency for inspection or ask the seller to make repairs. You might appoint them to view promised repairs and sign off on completion. And, as noted above, you can grant them authority to sign loan documents or a lease.
It is necessary that this form is signed in front of a notary and is recorded. It may later be revoked, but since its use expires after the transaction is complete, revocation may not be necessary.
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