Selling a home can be complicated, especially when legal authority and ownership rights come into play. Homeowners and families ask one common question: Can I sell a house with power of attorney (POA)? The short answer is yes, but with important conditions that must be met to ensure the sale is valid and legally binding.
This guide will explain how selling a property under power of attorney works, the responsibilities involved, and what pitfalls to avoid. By the end, you’ll know how to navigate this situation confidently.
What Is a Power of Attorney (POA)?
A power of attorney is a legal document that gives one person (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal). Depending on the type of POA granted, this authority can be broad or limited.
- General POA – Allows the agent to handle various financial and legal matters, including selling property.
- Limited POA – Restricts the agent’s authority to specific actions, such as selling a house.
- Durable POA – Remains valid even if the principal becomes incapacitated.
- Non-Durable POA – Expires if the principal becomes incapacitated or if a set time period ends.
Can You Sell a House With Power of Attorney?
You can sell a house with power of attorney, but only if the POA document explicitly grants that right. Not all POAs include real estate transactions, so the document’s wording is crucial.
For example, if the POA states that the agent may “manage, lease, or sell real property,” then the agent has the authority to sell the house. However, the agent cannot legally sell the property if real estate powers are excluded.
Legal Requirements for Selling Property Under POA
Before moving forward, there are several key requirements:
Valid POA Document
The POA must be executed appropriately and notarized according to state laws. The sale cannot proceed without a valid document.
Recording With the County
In many states, the POA must be recorded with the county where the property is located before the agent can sign closing documents.
Best Interest of the Principal
The agent must always act in the principal’s best interest. Selling below market value or engaging in self-dealing could be considered a breach of fiduciary duty.
Title Company Verification
Most title companies will carefully review the POA before approving a property transfer. If anything looks suspicious, they may reject the sale.
Common Challenges and Pitfalls
- Expired or Revoked POA – If the POA has expired or been revoked, the agent loses all authority.
- Incapacity Without Durable POA – If the principal is incapacitated and the POA is not durable, the agent cannot proceed.
- Family Disputes – Disagreements among heirs or family members can delay or block the transaction.
To avoid problems, it’s always best to consult a real estate attorney before selling a home under a POA.
Why People Sell Homes Using Power of Attorney
Selling a house under POA is common in situations like:
- Elderly homeowners who can’t physically attend the closing.
- Military service members stationed abroad.
- People with serious health issues or limited mobility.
- Family members managing estates on behalf of loved ones.
It provides flexibility while ensuring the principal’s property is managed responsibly.
Final Thoughts
Selling a house with power of attorney is entirely possible, but it requires careful attention to legal details. The POA document must clearly grant real estate authority, be properly recorded, and withstand scrutiny from title companies and attorneys. It can save time, reduce stress, and simplify complicated property sales.
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