Limited Power of Attorney for Real Estate

Function

• The primary function of a limited power of attorney for real estate is to vest specific power in an agent to deal with certain types of real estate related matters. The limited power of attorney document delineates the extent of authority granted to the agent. The limitations can include a specific time period in which the power of attorney is effective. Limitations can take the form of reference to a specific real estate transaction or particular pieces of real estate.
  
  

Time Frame

• Not only can a termination date be included in the limited power of attorney for real estate, the grantor maintains the power to terminate the instrument at any other time. Additionally, by operation of law, a limited power of attorney for real estate automatically terminates upon your death.
  
  

Types

• A limited power of attorney for real estate can be durable or non-durable. A durable power of attorney remains in full force and effect if the grantor becomes incompetent or otherwise legally incapacitated. On the other hand, a non-durable power of attorney automatically terminates upon the incapacitation of the grantor.
  
  

Misconceptions

• A common misconception associated with different types of financial powers of attorney, including a limited power of attorney for real estate, involves the death of the grantor. The erroneous belief is that the agent continues to act on behalf of the grantor after her death.
  
  

Benefits

• Multiple benefits of a limited power of attorney for real estate exist. Such an instrument allows you to appoint an experienced individual to negotiate real estate sales and purchases on your behalf. A limited power of attorney of this type permits you to designate a person to oversee and manage real estate investments. A limited power of attorney allows you to appoint a person to oversee and manage all aspects of your real estate investments.