The document will have an effective date and a termination date. Note: Most Special POA’s have a start date and end date. Remember: the power granted by a Special POA ends when the Principal dies. If the title or mortgage company cannot verify that the Principal is alive, the title or mortgage company may refuse to proceed with the real estate closing. This usually requires a telephone call with the Principal. Most title and mortgage companies will want to verify the Principal is still alive at the time of the closing. The signed and notarized document will need to be filed in the property records in the county in which the property is located. Item numbers 5 and 6 are what make the POA a Special (limited) POA rather than a General POA. List the specific actions the Agent can take on behalf of the Principal.Include the address of the property that is being bought or sold.Be signed by the Principal in front of a notary.Provide the name and address of the Agent.Provide the name and address of the Principal.In order to be valid, a Power of Attorney for a Real Estate Closing in Texas must: Power of Attorney for Real Estate Closing in Texas A Revocation of a Power of Attorney needs to be in writing and should be filed with the County Clerk. Powers of Attorney can be revoked at any time by the Principal. A General POA does not specifically describe the property. In most cases, title and mortgage companies prefer that the POA specifically describe the property being bought or sold. Even though you may already have a General Power of Attorney. Good to know: Many Texas title and mortgage companies require a Special Durable Power of Attorney for Real Estate Transactions if a person will be signing documents for someone else. Note: The Agent does not need to be a co-owner of the property. All the heirs sign a POA and name the one heir that can act on their behalf. In this case, the heirs may want to appoint one heir to handle the sale of the property. This document is especially useful when there are many heirs to a property. Either to buy or sell property that is co-owned. However, keep in mind that the authority is limited to one transaction only.Īdditionally, the document can be used by a spouse or other co-owner who is out of state or out of the country at the time of a real estate closing. As such, i t may be used for Seller Financing documents. For example, it can be used to purchase or sell a property using deeds such as Warranty Deeds, Life Estate Deeds and others.Ī Special POA may be used by one spouse or co-owner to authorize the other spouse or co-owner to buy or sell a property, including the signing of any required mortgage documents. The POA may be used to authorize one co-owner to act on behalf of the other co-owner. Special Durable Power of Attorney for Closing on a HouseĪ property co-owner may use a Special Durable Power of Attorney for a closing on a house or other real estate transaction. Good to know: The word “Durable” means that the power or authority given by the POA continues even if the Principal becomes mentally incapacitated. Note: In contrast, a General Durable Power of Attorney is used to appoint a person to conduct any transaction, including real estate transactions. This document appoints a person to conduct real estate transactions for a specific property only. Texas Special POA for Real Estate TransactionsĪ Texas Special POA for real estate transactions is a LimitedPower of Attorney. This may be a violation of the fiduciary obligations of the Agent. Keep in mind, the Agent should not use the POA to transfer property to the Agent. Note: Before you accept any POA as authority of the Agent, it is recommended that you confirm the Principal is alive. Upon the death of the Principal, you will need a Will or other document to act for the Principal. Good to know: All Powers of Attorney terminate upon the death of the Principal. The Agent does not sign the Power of Attorney. Agent – The person receiving the power is called the Agent.The Principal is the person who is giving the authority. Principal – The person signing the Power of Attorney is called the Principal.
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