Power of Attorney real estate (agents, contract, foreclosures, brokerage) - Real Estate Professionals - City-Data Forum

kstaggs7225 · 07-19-2012, 06:08 PM

Can a power of attorney be used in writing a residentail sale contract? In otherwords my client wants me to actontheirbehalf in regards to submitting an offer while they're out of the country.

MikeJaquish · 07-19-2012, 07:10 PM

Quote:

Originally Posted by kstaggs7225

Can a power of attorney be used in writing a residentail sale contract? In otherwords my client wants me to actontheirbehalf in regards to submitting an offer while they're out of the country.

Can it?
Maybe, but it had better be a cash deal. Lender may have an issue with an agent acting for the buyer when the agent stands to profit.

Personally, I would tell the buyer to engage an attorney to sign for the transaction.

Silverfall · 07-19-2012, 07:55 PM

Yes you can use power of attorney's but 1) if you are not the owner of the brokerage, I'd check their company policy on that. 2) you really should have a neutral party do it and 3) I can't think of a better way to set yourself up for a lawsuit than to act as the POA for a client when you plan to make money off the sale.

davecj · 07-19-2012, 08:35 PM

For the record, you would be the attorney in fact and would sign a power of attorney document if this plays out as you said.

WhoFanMe · 07-19-2012, 08:37 PM

Our company policy forbids agents from acting as Power of Attorney for clients. Consider using an electronic signature program like DocuSign, you can discuss the offer over Skype and then send the documents for electronic signature for your client. I've only been using it for about 3 months, but it has changed my life in real estate.

Elke Mariotti · 07-19-2012, 08:38 PM

Quote:

Originally Posted by kstaggs7225

Can a power of attorney be used in writing a residentail sale contract? In otherwords my client wants me to actontheirbehalf in regards to submitting an offer while they're out of the country.

Sounds like "conflict of interest" to me

MikeJaquish · 07-19-2012, 08:39 PM

I currently have limited POA to sign a HUD for clients who vacated the area.
They will review the HUD, and approve via email, and I will sign.

I'm OK with that, but would not for a moment consider authorizing a contract or terms for a client.

Rakin · 07-19-2012, 08:49 PM

Our company will not allow us to be a POA for a client. We can't even Notarize one of our own documents that they sign.

Big conflict of interest and possible liability. As mentioned above Docusign is wonderful for these needs.

NinaN · 07-20-2012, 08:11 AM

Docusign is great. But won't work for short sales or foreclosures. Most banks want wet sigs.

But I agree with everyone else, have the buyer get someone else to act as POA for signing contracts. Too much risk.

George Chong · 07-20-2012, 08:15 AM

Ditto, the risk is too high and I would avoid it too.