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How Power of Attorney Can Facilitate Real Estate Deals

Written by: Jody Adams
Last updated: March 25, 2024

Ever wondered how legal instruments like Power of Attorney (POA) can smooth the way for real estate dealings? Let's take a deep dive into how this powerful document can help streamline your transactions.

Understanding Power of Attorney (POA)

In layman's terms, a POA is a legal document that empowers a person, called an 'agent,' to act on behalf of another person, referred to as the 'principal.' This 'delegation of authority' can cover any number of affairs, including financial and legal matters, and is particularly handy in real estate transactions. One tool you could use is the POA document, which offers a template to streamline the creation process.

Types of POA for Real Estate

Within the realms of real estate, POA takes three primary forms:

  • General POA: Grant's broad powers, including buying or selling property and managing real estate investments.
  • Durable POA: Remains effective even if the principal becomes incapacitated, ensuring ongoing administration of real estate matters. 
  • Special or Limited POA: Authorizes the agent to conduct a specific transaction on a fixed date — selling a particular property, for instance.

Depending on the situation, either form could be more applicable.

When to Use a POA in Real Estate Transactions

The utility of a power of attorney can be a lifesaver in many scenarios during real estate transactions. Here are a couple of common circumstances:

  • Consider a situation where the principal lives in California but is selling a property in New York. Physically, traveling back and forth for every little negotiation or signing can be quite impractical. This is where a POA comes into play, authorizing an agent locally available in New York to handle the transaction efficiently.
  • Imagine a scenario in which the principal is temporarily medically incapacitated, for instance, due to surgery. During this period, they may not be in a position to make effective decisions. In cases like these, a durable POA can ensure that the real estate transactions remain uninterrupted by granting a trusted agent the authority to make decisions on their behalf.

Using a POA, the decision-making authority is vested in a trusted agent, allowing transactions to progress smoothly, regardless of geographical barriers or personal situations.

Benefits of Using a POA in Real Estate Transactions

The benefits of utilizing a power of attorney in real estate transactions are numerous and decisive. Here's how a POA can make a significant difference:

  • Continuity of transactions: Suppose you have a property deal in progress but suddenly have to travel overseas for an extended period. With a POA, you can delegate a trusted person to ensure the transaction rolls forward smoothly in your absence, keeping the sales momentum going.
  • Peace of mind: Let's imagine you're entering a long-term hospitalization phase due to a scheduled surgery. Rather than worrying about how your real estate deals would get managed, a POA allows for the appointment of a reliable agent, providing relief and assurance that your business affairs are in good hands.
  • Avoidance of missed opportunities: Consider a scenario where a time-sensitive investment opportunity crops up, but you cannot seal the deal. A POA can empower your agent to act promptly, thus preventing potentially lucrative opportunities from slipping away due to your absence or incapacity.

In essence, a POA in real estate transactions facilitates smoother operations, enhances peace of mind, and helps in capitalizing on available opportunities, despite personal constraints or challenges.


The versatile power of attorney can be a useful tool in the realm of real estate, providing an effective solution for dealing with geographical barriers, scheduling clashes, and incapacity. It’s worth considering a POA document the next time you contemplate a real estate transaction.

Jody Adams
Jody Adams is an accomplished editor-in-chief with a deep understanding of social care and government benefits issues. With a background in journalism and a master's degree in Public Policy, Jody has spent her career shaping the narrative around social policies and their impact on society. She has worked with renowned publications, effectively bridging the gap between complex policy analysis and public understanding. Jody's editorial expertise ensures that vital information on social care and government benefits reaches a broad audience, empowering individuals to make informed decisions.

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