Power of Attorney sample – A Full Spectrum Examination

 

A power of attorney agent is often times also called an “attorney-in-fact”. This person is appointed by some one to legally represent them for specific or general tasks or situations. This is done by creating a power of attorney form, it only needs to be notarized (recorded by your county) if it involves real estate.

A Power of Attorney (POA) is either limited to a specific transaction and called a Limited Power of Attorney (LPOA) or is not limited to a transaction and is called a General Power of Attorney (GPOA). It is common in Real Estate Purchase Agreement transactions to use a LPOA for the day-to-day administration of the activities of the property and for signing the closing documents when the property is sold.



The usual reason for the owner of a property to give a POA to someone is because he can’t be onsite where the property is located or can’t come to the closing. Even with a LPOA the person given this power can issue the disbursement check to himself which makes POAs risky if the authorized agent takes advantage of the situation.


Advance preparation of the power of attorney sample can avoid the inconvenience and expense of legal proceedings. This needs to be done while the principal is competent, alert and aware of the consequences of his/her decision. Once a serious problem occurs, it is too late.



There are a very large number of various different kinds of power of attorneys.

 

•General Power of Attorney– In this kind of power of attorney you are actually naming someone to act for sure in your place if you can not act for yourself in any case. They are known as an agent.

 

•Limited Power of Attorney: in this kind of power of attorney you have basically limited the amount of power your agent has over each and every affair of yours. For instance you are giving your agent the access to your bank account only. An example of this kind of power of attorney is the Springing Power of Attorney. This kind of power of attorney becomes effective only if you become incapacitated. But this kind of power of attorney is no longer being recommended. The reason behind this is the Health Insurance Portability and Accountability Act. This act says that all your medical records remain completely private unless the written consent is given.



•Also under the Springing Power of Attorney if your agent can not get the medical records in order to prove that you are really incapacitated, then your agent can not even act as an agent. It does not matter at all whether you have a limited or a general power of attorney, do always make sure that there is a clause giving your agent the full authority to have access to your medical records if he/she has to prove that you are incapacitated if a situation comes up.



•Durable Power of Attorney is one more item that you need to include. This simply means that there is language built stating that it is viable even upon your incapacitation. Almost all the various different kinds of power of attorneys become void and null upon death or incapacitation. Even if you have a limited or a general power of attorney, do make sure always that it is durable. The will really makes sure that it is still valid upon death or even upon incapacitation. Make sure that the attorney you choose knows the difference between all the various different types of power of attorney before hiring him or her.



•Whenever your attorney-in-fact exercises any of the powers granted under the Power of Attorney, your attorney-in-fact must be prepared to show the Power of Attorney to anyone who questions the right to use it. If your attorney-in-fact deals with the title to real estate contract, it will be necessary for the Power of Attorney to be recorded. There is usually no reason to record the Power of Attorney until such time as property may be conveyed unless there is fear that the document might be lost.

Leave a Reply

Your email address will not be published. Required fields are marked *