Power of Attorney for Real Estate: Types, Requirements, and How to Use One for Property Transactions

You're [closing on a house](/blog/homebuying-closing-process) next Thursday, but you'll be in Tokyo for work. Your elderly mother needs to sell her home, but she's in a care facility two states away. Your business partner needs to sign a deed, but they're deployed overseas.

A power of attorney (POA) solves all of these problems. It's a legal document that authorizes someone else to act on your behalf in property transactions — signing deeds, closing on purchases, managing rental properties, or handling any other real estate matter.

But POAs for real estate come with strict requirements that vary by state, and mistakes can delay or void an entire transaction. This guide covers everything you need to know.

What Is a Power of Attorney?

A power of attorney is a legal document where one person (the principal) authorizes another person (the agent or attorney-in-fact) to act on their behalf. Despite the name, the agent doesn't have to be a lawyer — it can be any competent adult.

The key concept: the agent steps into the principal's shoes. When an agent signs a deed using a valid POA, it has the same legal effect as if the principal signed it personally.

Important Terminology

• Principal: The person granting the power
• Agent / Attorney-in-fact: The person receiving the power
• Durable: Remains effective if the principal becomes incapacitated
• Springing: Only becomes effective when a specific event occurs (usually incapacity)
• General: Covers broad powers across many types of transactions
• Limited / Special: Covers only specific transactions or a specific time period

Types of Power of Attorney for Real Estate

General Power of Attorney

A general POA gives the agent broad authority to handle the principal's financial affairs, including real estate transactions. It typically covers:

• Buying and selling property
• Signing deeds, mortgages, and leases
• Managing rental properties
• Paying property taxes and insurance
• Handling property maintenance and improvements

A general POA terminates automatically if the principal becomes incapacitated (unless it's also a durable POA). It also terminates upon the principal's death.

Durable Power of Attorney

A durable POA includes language specifying that the agent's authority continues even if the principal becomes mentally incapacitated. This is critical for long-term planning.

The magic words vary by state but typically say something like: "This power of attorney shall not be affected by the subsequent disability or incapacity of the principal."

Without this durability language, the POA becomes useless precisely when you're most likely to need it — when the principal can't act for themselves.

Most estate planning attorneys recommend durable POAs for all clients as a standard part of estate planning.

Limited (Special) Power of Attorney

A limited POA grants authority for a specific transaction or a defined time period. For real estate, this is the most commonly used type. Examples:

• "My agent may sign all documents necessary to complete the sale of 123 Main Street, Anytown, USA, on or before March 31, 2026."
• "My agent may manage my rental property at 456 Oak Avenue, including collecting rent, hiring contractors, and signing leases, from January 1, 2026 through December 31, 2026."

Limited POAs are preferred by title companies and lenders because they're specific and time-bound, reducing the risk of misuse.

Springing Power of Attorney

A springing POA only becomes effective when a triggering event occurs — usually the principal's incapacity, as certified by one or two physicians. Until that event happens, the agent has no authority.

While springing POAs seem appealing (the agent can't act until you actually need them to), they can create practical problems:

• Obtaining physician certifications takes time and may delay urgent transactions
• Some title companies and lenders are reluctant to accept springing POAs because verifying the triggering event is complicated
• Not all states recognize springing POAs

For real estate purposes, a durable POA with a trusted agent is usually more practical than a springing POA.

State Requirements for Real Estate POAs

Real estate POAs have stricter requirements than general POAs because they involve interests in land. Requirements vary significantly by state.

Signing and Notarization

Every state requires that a real estate POA be signed by the principal and notarized. Many states have additional requirements:

• Witnesses: States like Florida require two witnesses in addition to notarization. Others (like [California](/blog/california-heloc-guide)) may require witnesses for certain types of POAs.
• Recording: Many states require or recommend that real estate POAs be recorded in the county recorder's office where the property is located.
• Statutory form: Some states (including California, New York, Illinois, and Texas) have specific statutory POA forms. While you're not always required to use the statutory form, doing so reduces the chance that a title company or other party will reject the document.

State-Specific Highlights

California: Uses a statutory form (Probate Code §§ 4400-4409). The principal must initial each category of power they're granting. For real estate, the "real property transactions" box must be specifically initialed. California also requires a separate statutory form for healthcare decisions.

New York: Enacted a new statutory short form POA in 2021 (General Obligations Law § 5-1501B) that added significant requirements, including a signatures and dates requirement for the agent's acceptance and a statutory gifts rider for any gifting authority.

Florida: Requires two witnesses and notarization (F.S. § 709.2105). Florida's POA Act (Chapter 709) contains detailed provisions about agent duties and third-party acceptance requirements.

Texas: Uses a statutory durable POA form (Estates Code § 752.051). Texas law also provides a specific process for dealing with third parties who refuse to accept a valid POA.

Illinois: Has a statutory short form POA for property (755 ILCS 45/3-3) that includes checkboxes for specific categories of authority.

Using a POA for Specific Real Estate Transactions

Selling Property With a POA

This is the most common use of a real estate POA. The agent signs all closing documents on behalf of the principal, including:

• The deed (warranty deed, [quitclaim deed](/blog/how-to-read-property-deed), etc.)
• The settlement statement (HUD-1 or ALTA)
• Seller disclosures (where required by state law)
• Any affidavits or certifications

How the agent signs: The agent should sign as follows: "John Smith, as attorney-in-fact for Jane Smith" or "Jane Smith, by John Smith, her attorney-in-fact." The specific format may vary by state and title company preference.

Title company requirements: Most title companies will:

1. Require the original POA (not a copy) or a certified recorded copy
2. Review the POA to confirm it specifically authorizes real estate transactions
3. Verify the principal was competent when the POA was signed
4. Confirm the POA hasn't been revoked
5. Require the POA to be recorded in the county where the property is located

Some title companies add requirements beyond what state law mandates. They may require:

• The POA to be less than a certain age (often 1–2 years old)
• A certificate of competency from the principal's physician
• A signed affidavit from the agent confirming the POA is still in effect

Buying Property With a POA

Buying with a POA is generally more straightforward than selling, but the lender adds a layer of complexity. If the buyer is obtaining a mortgage:

• The lender must approve the use of a POA (many have specific policies)
• FHA, VA, and conventional loan guidelines have specific POA requirements
• The POA must specifically authorize the agent to sign loan documents and encumber the property
• Some lenders require the principal to have signed at least the initial loan application personally

Managing Rental Property With a POA

A POA can authorize an agent to:

• Sign leases with tenants
• Collect and deposit rent
• Hire and pay contractors for maintenance
• Pay property taxes, insurance, and mortgage payments
• Handle eviction proceedings
• Make property [improvement](/blog/heloc-vs-home-improvement-loan) decisions

For [property management](/blog/property-management-complete-guide), a limited POA tailored to management activities is usually sufficient. Many property owners use this approach when they live far from their rental properties and don't want to hire a professional management company.

Refinancing With a POA

Refinancing involves both selling (paying off the existing loan) and buying (taking on a new loan), so the POA must authorize both types of transactions. The lender's requirements are typically the strictest:

• POA must be recently executed (many lenders require within 6–12 months)
• Must specifically reference the property being refinanced
• The principal must often have been directly involved in the initial loan application
• Some lenders won't allow POA for cash-out refinances

Common Reasons POAs Are Rejected

Title companies and lenders can (and frequently do) reject POAs. Common reasons:

1. The POA Is Too Old

Many title companies won't accept a POA that's more than 1–2 years old, even if it's technically still valid. Their concern: the principal may have revoked it, become incapacitated (if it's not durable), or died.

Solution: Execute a new POA close to the transaction date, or provide a current certification that the POA remains in effect.

2. The POA Doesn't Specifically Authorize Real Estate Transactions

A general POA that doesn't mention real property, deeds, or real estate transactions may be rejected. Title companies want to see explicit authorization.

Solution: Use a POA that specifically mentions real estate transactions, or better yet, references the specific property involved.

3. The POA Wasn't Properly Notarized or Witnessed

If the POA doesn't meet the state's formal requirements, it's invalid for real estate purposes.

Solution: Always have a real estate POA prepared or reviewed by an attorney licensed in the state where the property is located.

4. The Agent Can't Prove the Principal Is Still Alive and Competent

A POA terminates upon the principal's death. Title companies may require proof that the principal is still living.

Solution: Provide a current affidavit from the agent, or a physician's letter confirming the principal's status.

5. Self-Dealing Concerns

If the agent is also the buyer (or has a financial interest in the transaction), the title company may refuse to proceed without additional safeguards. An agent using a POA to sell the principal's property to themselves raises obvious conflict-of-interest concerns.

Solution: Include specific authorization for the transaction in the POA, or have an independent attorney review and approve the transaction.

Duties and Responsibilities of the Agent

Being named as an agent under a POA isn't just a power — it's a serious legal responsibility. The agent owes fiduciary duties to the principal, including:

Duty of Loyalty

The agent must act in the principal's best interests, not their own. Self-dealing (buying the principal's property for yourself at a below-market price, for example) is a breach of fiduciary duty and can result in civil liability and criminal charges.

Duty of Care

The agent must act with the same care, competence, and diligence that a reasonable person would exercise in similar circumstances.

Duty to Account

The agent must keep records of all transactions conducted on the principal's behalf and provide an accounting if requested by the principal, a court, or other authorized parties.

Duty to Follow Instructions

The agent must follow the principal's instructions and stay within the scope of authority granted by the POA. Acting beyond the POA's scope can void the transaction and expose the agent to liability.

Liability for Breach

An agent who breaches their fiduciary duties can be held personally liable for any losses. In extreme cases (theft, fraud, exploitation), criminal charges can follow. Elder financial abuse laws in many states specifically target POA misuse.

How to Revoke a Power of Attorney

A principal can revoke a POA at any time, as long as they're mentally competent. To revoke:

1. Execute a written revocation. State that you're revoking the POA, identify the original document, and sign and notarize the revocation.
2. Notify the agent. Deliver a copy of the revocation to the agent. Until the agent receives notice, they may continue to act in good faith.
3. Record the revocation. If the original POA was recorded, record the revocation in the same county.
4. Notify third parties. Notify any banks, title companies, tenants, or other parties who may have relied on the POA.

A POA is also automatically revoked:

• Upon the principal's death
• Upon the principal's incapacity (unless the POA is durable)
• If a court appoints a guardian or conservator for the principal (in most states, this suspends or revokes existing POAs)
• Upon the terms specified in the POA itself (expiration date, completion of the specified transaction, etc.)

POA for Real Estate vs. Adding Someone to the Deed

Some people consider adding a family member to the deed instead of using a POA. These are very different strategies:

In almost every case, a POA is preferable to adding someone to the deed. Adding someone to the deed is irrevocable, creates tax problems, and exposes the property to the new owner's creditors.

Cost of a Real Estate Power of Attorney

For a simple, one-time transaction (like signing closing documents while you're traveling), a limited POA from an online service or statutory form may be sufficient. For ongoing property management or estate planning, invest in an attorney-drafted document.

Frequently Asked Questions

Can I use a power of attorney to sell a deceased person's property?

No. A POA terminates automatically upon the principal's death. To sell a deceased person's property, you need authority from the probate court (as executor or administrator of the estate) or the property must be held in a trust with a living trustee.

Can a POA agent take out a mortgage on the principal's property?

Only if the POA specifically authorizes the agent to borrow money and encumber real property. Most general POAs include this authority, but lenders may impose additional requirements.

Do all states accept out-of-state POAs?

Most states have adopted some version of the Uniform Power of Attorney Act, which requires acceptance of out-of-state POAs that were valid under the law of the state where they were executed. However, title companies in the property's state may still have concerns. Best practice: execute the POA under the laws of the state where the property is located.

Can two people be co-agents under one POA?

Yes. The POA can name co-agents who must act together (which provides a check on misuse but can be logistically difficult) or independently (which is more convenient but offers less oversight).

How long is a power of attorney valid?

A POA remains valid until it's revoked, expires by its own terms, or the principal dies or becomes incapacitated (unless durable). There's no automatic expiration, but as noted above, many title companies won't accept POAs more than 1–2 years old for real estate transactions.

Can a POA be used for a [1031 exchange](/blog/1031-exchange-guide)?

Yes, but the POA must specifically authorize the agent to conduct tax-deferred exchanges and enter into exchange agreements. The [qualified intermediary](/blog/1031-exchange-rules-2026) and title company will want to review the POA before proceeding.

What if someone refuses to accept my POA?

Many states have adopted laws penalizing third parties who unreasonably refuse to accept a valid POA. In Texas, for example, a third party who refuses a valid POA without reasonable cause can be liable for attorney fees, court costs, and damages. If a title company or lender refuses your POA, ask them to cite the specific reason and consult an attorney about your state's acceptance requirements.

The Bottom Line

A power of attorney is an essential tool for real estate transactions when the property owner can't be present or is unable to handle their own affairs. For most people, a durable, limited power of attorney — one that survives incapacity and is tailored to specific real estate transactions — is the right choice.

Three rules will keep you out of trouble:

1. Use an attorney in the state where the property is located. State requirements vary enough that a DIY POA from the wrong state can derail a closing.
2. Be specific. The more specific the POA is about the property and transaction, the less likely it is to be rejected.
3. Execute it close to the transaction. A freshly signed POA raises fewer questions than one that's five years old.

The cost — $200–$600 with an attorney — is negligible compared to the cost of a delayed or failed real estate closing.

Related Articles

• 1031 Exchange for Beginners: Complete Guide to Deferring Capital Gains Taxes
• 1031 Exchange: Defer Taxes, Build Wealth Faster
• Property Taxes Explained: How They Work and How to Reduce Them