Using a Power of Attorney
Sellers and buyers frequently need to use a Power of Attorney in the closing of a transaction. Limited Powers of Attorney to sell (LPB form number 70-05(1)) and to purchase/encumber (LPB form number 71-05(1)) can be prepared by Limited Practice Officers. These two forms, when properly prepared, executed and acknowledged are sufficient for their specific purposes.
Particular care should be taken if the parties want to use forms other than these two LPB forms in their transaction. In some cases, the parties may have previously prepared Powers of Attorney that they may want to use. If this is the case, the document must be approved by the title company prior to the closing.
The title company will review the document to be certain the powers given are sufficient for use in the transaction, specifically the powers to “bargain, sell contract to convey or convey any and all right, title and interest.”
Also, if the Power of Attorney document is older, the title company may ask for confirmation from the principal that it is still in full force and affect. The Title Officer will look for the same verbiage as mentioned above in the General Power of Attorney. Especially helpful is when the document grants “all powers of an absolute owner over the property.”
The Power of Attorney will be recorded with the other closing documents and the original will be returned to the parties, sent directly from the
’s office. county Recorder
Keep in mind that a personal representative, corporate officer or other fiduciary can not give power of attorney without specific authority to do so.