A Power of Attorney (POA) is the written authority for an “agent” to act on behalf of someone else. This means that if you need to get something done while you are out-of-town or incapacitated in some way, you can still reach your goals.
I have used a POA mostly for real estate transactions. Since I put each property into its own separate Land Trust, it is convenient to have a signed POA when my Trustee lives out-of-state. This is perfect investing tool for joint ventures, land trusts, wholesaling (in some cases) and partner deals.
Since I use mostly Trustees from other states (not where I live nor where the property is located), I will have my Trustee sign the Trustee’s Deed, HUD-1, Termite Report, etc. prior to closing the transaction (this prevents my Trustee from having to attend the actual closing). In addition, I may have my Trustee sign a POA to my attorney (or me, but not usually) giving him authority to sign any last minute documents that appear at the closing table.It is also possible (using this POA form) to have my attorney sign ALL documents (including the Trustee’s Deed) on behalf of my Trustee.
RELATED TRAINING VIDEO: Why Real Estate Investors Should Use Land Trusts
The POA can be issued for an indefinite period of time or limited by time or circumstance. If you would like to see a typical POA form that I use, Google…”Illinois statutory form power of attorney for property.”
Hope this real estate investing deal gets you quicker to closing that next deal!