A special power of attorney is a contract that has been signed by an individual which grants another individual the power to act in support of their client. The limitations that are associated with the power given to the individual or attorney can vary depending on the situation at hand. The individual who grants a special power of attorney is dubbed the grantor or principal. The person who is mentioned in the agreement is the attorney in fact.

There are two broad classifications of a power of attorney which are general and special. A special power of attorney authorizes the specific person or agent in fact to act in favor of the principal under precise conditions. It is extremely vital for the sake of the principal to state the powers clear and concisely in the document signed in order to make sure the powers granted are within their liking. The principal is free to generate a number of different special powers which they then can authorize a different individual for each specific power.

A general power of attorney allows for an agent to make all of the necessary transactions that are needed from the principle without approval for each deal or action. A list of various scenarios such as traveling or a bad accident might make an individual difficult to contact, a general power of attorney can give their agent authorization in order to carry out certain deals on their behalf such as :

Bill payments

Management of Real Estate

Filing taxes

Any other personal or business deals

Power of Attorney In Regards To Real Estate

In real estate, a power of attorney would be a set of legal documents which allows for a principal to authorize an agent to buy or sell a piece of real estate on their behalf, while also allowing them to manage any other business proceedings in relation to the real estate owned by the principal. As mentioned before, some reasons that could call for a power of attorney could be the principal being out of town while significant documents need to be signed, don’t live in proximity to the property, or are generally not able to look after the property for any reason.

When Does A Power Of Attorney Become Ineffective?

A power of attorney can become ineffective if the individual who listed them in the agreement becomes disabled or is no longer alive. The principal would no longer be able to grant the powers necessary due to the unfortunate scenario at hand. In the case of  incapacitated, a special power of attorney can be labeled “durable” which allows the agent to sustain their right to act on behalf of the principal. The agent would act in this manner until the principals death. In the case that an individual did not appoint a durable power of attorney, the court would then choose from either a guardianship or conservator ship in order to take over their legal actions.