Title companies are often requested to close transactions involving power of attorneys for Buyers or Sellers. I've been part of multiple transactions involving power of attorneys and have asked First American Title Company to assist me in providing you with this brief. A power of attorney becomes convenient in multiple situations when the principal is unable to attend a closing because of health or distance. I usually recommend that a power of attorney be used only when absolutely necessary. A mail out is a great option for buyers and sellers who are not in Houston. I can usually arrange for the mail out of closing documents for your convenience.
Criteria for Power of Attorney
1. Power of attorney should be specific to the property. You won’t be able to use a power of attorney for multiple properties in different locations.
2. Subject property must be described legally (Meets & Bounds). A street address alone is insufficient for identifying the property in public records. Meets and Bounds is surveyor's description of a parcel of real property. The surveyor measures distances, angles, and directions thus providing a "legal description" of the land.
3. Principal executing the power of attorney must be over 18 years of age. A picture ID can provide proof of this to the Title Company.
4. The power of attorney should not be more than 60 days old (few exceptions).
5. The document should state that it cannot be revoked unless written revocation is filed with the county clerk where the property is located.
6. Power of attorney will not terminate upon the disability or incapacity of principal.
7. The individual giving the power of attorney must communicate with Escrow Officer at or before closing the following:
a. Ratify the acts of the Attorney-in Fact (provide name of the Attorney-in Fact.
b. Know the sales/purchase price amount and loan amount if applicable.
8. A notary public must acknowledge the power of attorney. Many Escrow Officers at Title Companies are notary publics.
9. Power of attorney and the acknowledgement must be written in English to be filed of record.
10. If Seller gives power of attorney, the Title Company should approve it.
11. If Buyer gives power of attorney, it must be approved by Lender and Title Company.
12. The original power of attorney must be at the Title Company the day of closing so it can be recorded with the county clerk, prior to any other transaction documents.
13. A Durable Power of Attorney allows an agent appointed to act on behalf of the principal notwithstanding later disability or incompetence of the principal. (Section 36A of the Texas Probate Code).
14. Alternate Agent clauses may appear in some power of attorney documents.
15. If principal is deceased during the power of attorney, please contact a Real Estate Attorney. Some title companies will process other means to prove legal right to property. Speak to your Real Estate Attorney regarding establishing a living will or living trust.
It is important to note that every state is different when it comes to legal matters and representations. It would be wise to contact an attorney who specializes in real estate and estate planning. Being prepared prior to buying or selling is of importance and a power of attorney allows the feasibility to do so.
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Sincerely,
Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069
Online at www.HoustonHeritage.com
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