What is an Attorney in Fact in Real Estate Transactions?

Real estate transactions can get complicated, especially when property owners can't be physically present to sign documents or make decisions. That's where an Attorney in Fact steps in - they're the designated person who can legally act on someone else's behalf during these important transactions.

Attorney in Fact: A person who has been legally authorized through a power of attorney document to act on behalf of someone else in real estate and other legal matters. This authorization allows them to sign important documents like deeds and mortgages as if they were the property owner themselves.

Understanding the Basics

Becoming an Attorney in Fact starts with a legal document called a Power of Attorney (POA). This document spells out exactly what the person can and cannot do. The process requires proper documentation, notarization, and sometimes witness signatures.

The scope of authority varies based on the type of POA. Some Attorneys in Fact can handle everything from signing closing documents to managing property taxes, while others might only have permission for specific tasks like selling one particular property.

Types of Attorney in Fact Arrangements

• General Power of Attorney: Gives broad authority to handle most real estate matters

• Limited Power of Attorney: Restricts authority to specific transactions or time periods

• Durable Power of Attorney: Stays valid even if the property owner becomes incapacitated

Common Real Estate Scenarios

People often need an Attorney in Fact when they're:

• Serving in the military overseas

• Living in another country

• Dealing with health issues that prevent them from handling transactions

• Too busy with work commitments to manage property matters

These representatives can handle various real estate transactions, including:

• Buying and selling properties

• Signing lease agreements

• Managing mortgage documents

• Handling property tax matters

Legal Responsibilities and Obligations

An Attorney in Fact must act in the best interest of the property owner. They need to:

• Keep detailed records of all transactions

• Make decisions that benefit the property owner

• Avoid mixing personal and representative finances

• Follow all instructions outlined in the POA document

Common Misconceptions

Many people mix up an Attorney in Fact with a real estate attorney - they're not the same thing. An Attorney in Fact doesn't need legal training; they just need authorization from the property owner.

The power of an Attorney in Fact isn't endless. They can't:

• Change or update the POA document

• Transfer their authority to someone else

• Make decisions outside their authorized scope

• Continue acting after the POA expires or is revoked

Practical Considerations

Pick someone trustworthy as your Attorney in Fact. Look for:

• Financial responsibility

• Good organization skills

• Availability when needed

• Knowledge of your wishes

Keep all paperwork organized, including:

• The original POA document

• Records of all transactions

• Copies of signed documents

• Communication records

Working with an Attorney in Fact

Real estate professionals need proper verification when working with an Attorney in Fact. Title companies and lenders have specific requirements for accepting POA documents. They'll need:

• Original or certified POA documents

• Proof of identity

• Sometimes, additional affidavits

Conclusion

Having an Attorney in Fact can make real estate transactions much smoother when you can't be present. Just make sure you understand the arrangement's scope and choose someone you trust completely.

Need help with a real estate transaction involving an Attorney in Fact? Bellhaven Real Estate can guide you through the process and make sure everything goes smoothly.