Limited Power of Attorney Given to Real Estate Agent
Full Question:
Answer:
A power of attorney is a legal instrument that individuals create and sign that gives someone else the authority to make certain decisions and act for the signer. The person who has these powers is called an "agent" or "attorney-in-fact." The signer is the "principal." As a principal, if the principal's decisions conflict with those of the agent, the principal's decision will govern, assuming that the agent confers with the principal prior to taking an action. If an agent has acted on the principal's behalf and acted within the scope of authority granted by the power of attorney, then the principal may be obligated by the terms and conditions of his actions.
The person designated to be the agent assumes certain responsibilities.
The agent is obligated to act in the principal's best interest. The agent must always follow the principal's directions. Agents are "fiduciaries," which means that the agent must act with the highest degree of good faith in behalf of their principals. The agent must keep his money separate from the principal's; keep detailed records concerning all transactions he engages in on the principal's behalf; not stand to profit by any transaction where the agent represents the principal's interests; and not make a gift or otherwise transfer any of the principal's money, personal property, or real estate to himself unless the power of attorney explicitly states he can do so. An agent who acts against the principal's interest for his own gain, or acts outside the authority granted in the power of attorney, may be held personally liable.
A power of attorney should only be given to a trusted person. While such language is not unusual in such a document, the answer is a matter of personal judgment. I suggest getting references if you are in doubt about the agent's trustworthiness. A power of attorney may have terms included to limit the authority of the agent, such as prohibiting certain actions, limiting the duration to a specified time period, or requiring the principal's approval to be obtained before taking certain actions. You may also arrange to have documents faxed or overnighted for your signature, if you don't wish to have the agent sign papers for you.
