What is a “power of attorney” in real estate transactions?

In real estate transactions, a "power of attorney" serves as a legal document that grants authority to another individual to act on behalf of the person who created the document, known as the principal. This authority can encompass a variety of actions, including signing documents, managing transactions, and making decisions regarding real property.

When a person cannot be present to handle their real estate matters, they may designate an agent through a power of attorney to ensure that their interests are represented. This is particularly important for transactions that require timely decisions or signatures. The agent can perform the necessary tasks as if they were the principal themselves.

Understanding this concept is crucial for anyone involved in real estate, as it provides a mechanism for individuals to delegate important responsibilities to trusted individuals in various situations, such as being out of the country or unable to attend a closing.