Types of Power of Attorney

1. General Power of Attorney

• Grants broad powers to the attorney to manage the donor’s financial and legal affairs.

• The attorney can make decisions that the donor would be able to make if present.

• Does not include decisions about the donor’s personal or healthcare matters.

• Becomes invalid if the donor becomes mentally incapacitated or passes away.

2. Special (Limited) Power of Attorney

• Grants specific and limited powers to the attorney, often for a defined period or task.

• Commonly used when the donor is unavailable, such as being out of the country.

• For real estate purposes, a Special POA can allow the attorney to handle property sales, mortgage agreements, or specific legal transactions.

• When registered on a Certificate of Title, it suspends the donor’s right to manage the property.

3. Immediate Power of Attorney

• Takes effect as soon as it is signed, dated, and witnessed.

• Allows the attorney to make financial and legal decisions on behalf of the donor without further conditions.

• Ends if the donor loses mental capacity or upon their death.

4. Enduring Power of Attorney

• Remains effective even if the donor becomes mentally incapacitated.

• Can be designed to take effect immediately and continue upon incapacity or to only become effective upon the donor’s incapacity (Springing POA).

• Must clearly state its enduring nature to remain valid in the event of the donor’s mental incapacity.

• 
  

Understanding these types of POAs and their applications can help real estate professionals navigate transactions where an attorney is acting on behalf of a property owner. Always verify the validity and scope of a POA before proceeding with any legal or financial actions.