When people hear the phrase “power of attorney,” they often think of a few predictable things: being able to make financial decisions like write checks and pay off debts, or in the case of medical powers of attorney, making medical decisions. If you’ve never heard of power of attorney for real estate transactions before, you’re about to learn just how comprehensive and sweeping powers of attorney can be - and how they can really help people, or in the wrong hands, hurt people. Let’s learn a little bit more about this power of attorney.

Specifically defined, “real estate power of attorney” can really be a power of attorney granted solely for the use of making real estate transactions. These forms can be filled, signed, and easily handled by many lawyers - in fact, downloading one of these forms online is not hard these days. Not that you should ever download a legal form without plenty of research and sound legal advice in your hands first.

These powers of attorney are, of course, isolated to the ability to make real estate transactions on someone’s behalf - although powers of attorney could include this power, it is possible to restrict the powers of attorney this much, as well. Confused yet? Let’s put it more simply: if you’re granting someone powers of attorney, you can limit their powers as much as you like. Real estate transactions is just one limitation you might choose from.

Typically, people sign “nondurable” powers of attorney with the power to buy real estate, meaning that when you become incapacitated, the “agent,” or the one you’ve assigned the powers to, will not be able to continue carrying on with these powers of attorney. Whenever you hear a phrase like “durable” or “nondurable” in relation to powers of attorney, you should know that that’s what’s being referred to.

Why would someone appoint powers of attorney for the purpose of real estate purchases or sales? Well, there are a number of reasons - if, for some reason, the principal of these powers (the one handing over the powers) is unable to make a real estate transaction but needs it to be done anyway, then appointing someone else the ability to make a transaction in their name might be valuable. Whether someone is overseas and unable to return or there is some other logistical obstacle in the way, power of attorney can be a powerful way to have someone else represent your interest.

With that said, it’s also important to recognize that powers of attorney of any type should only be granted to someone with the implicit trust of the principal. Naming an agent - the person receiving the powers - should typically mean naming a family member or someone else who has known you for a similarly-long amount of time.

Real estate power of attorney can be a powerful thing - which is why it should be given careful consideration before signing. If you’re interested in learning more, be sure to check out online power of attorney forms and see what language they contain.