A ‘real estate power of attorney’ is a legal instrument that lets you delegate the management, purchase, transfers, or lease of real estate property. The person whom you delegate the role to is called the ‘agent’ or ‘attorney-in-fact.’
What is “Real Estate Power of Attorney”?
This refers to the freedom to delegate a power to a third party to transact businesses that pertain to your real estate. The form comes in when you are either too busy, have no relevant expertise or are to travel abroad for some time. At such times, you will need someone to come through and take over the management of your estate until you are finally able to do so on your own.
Other names of “Real Estate Power of Attorney”
This document goes by other relevant names like:
- Real Estate POA
- Power of Attorney for Real Estate
Power of Attorney Forms (by State)
When is the “Real Estate Power of Attorney” used?
You will find this form handy many times. The following are the main times in which the document is by all means essential:
If you are incapacitated for whatever reason such that you are unable to go about your normal duties, this form will definitely come to your rescue. It lets you appoint another person to handle your real estate management without necessarily requiring that you get there on your own.
The case above also applies when you are too busy to go about your businesses normally. It basically gives you the freedom to choose someone to act on your capacity until such a time that you are not as busy as you have been. This way, you do not forfeit your normal duties and the returns you would accrue from your investments.
Some jurisdictions require that the handling of real estate property be performed by persons who are competent and widely knowledgeable in the field. Chances could be that you simply lack these skills and competence. That is why it makes sense for you to choose someone who has the necessary knowledge and expertise to handle the issues for you.
When people are terminally ill, they lack the capacity to reason and make sound decisions. This obviously impact on the manner in which they might handle and manage their estates. To be sure that the management will go on without any interferences in the process, you want to make do with a form or power that allows you to delegate that very responsibility.
It could be that you are simply unable to handle these issues on your own by reason of being temporarily separated. If and when this happens, you will surely have to bring in another person to take over the management of your real estate and the associated tasks. The form will give you the power to do just that.
Vastness of Portfolio
Some real estate portfolios are ordinarily too vast to manage single-handedly. You have to options for your consideration in case you own such a vast estate. These are, appointment of a real estate management firm, and the delegation of the authority to manage those estates to a third party. The latter is definitely the more viable alternative.