Home Buyer's Guide
Power of Attorney
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It has become very commonplace for title companies to be requested to close transactions wherein a power of attorney will be used. In our fast-paced society, it seems that it has almost become "fashionable" to use a power of attorney - people just don't wish to be inconvenienced by having to attend a closing. It is the policy of most title insurance companies that powers of attorney should only be used in an extreme situations. In many cases where people are out of the country, it is just as simple to have the closing papers prepared and forwarded to the party for signature in time for closing.

If a power of attorney is to be used in the closing of a real estate transaction it must meet the following criteria:

1.  The power of attorney should be specific as to the property.
2.  The property must be described by legal description (a street address alone is insufficient for identification purposes in the public records).
3.  The principal executing the power of attorney must be an adult (at least 18 years of age).
4.  The power of attorney must not be more than 60 days old.
5.  It should contain revocation language i.e. cannot be revoked unless written revocation is filed with the county clerk where the property is located.
6.  Will not terminate upon disability or incapacity of principal.
7.  The person giving the power of attorney must communicate with the escrow officer at or near the time of closing that:
   1.  He ratifies the acts of the Attorney-In-Fact, giving the name of the Attorney in-Fact; and
   2.  He knows the sales/purchase price is $______; and if a loan transaction, that the loan amount is $______.
8.  The power of attorney must be acknowledged by a notary public.
9.  The power of attorney and the acknowledgement must be in the English language to be filed of record.
10.  If the power of attorney is given by the Seller, it need only be approved by the escrow officer or the appropriate representative of your company. If the power of attorney is given by the Purchaser who is creating a new loan, then the power of attorney must first be approved by the lender and then by the title company. If the power of attorney is given by the Purchaser who is creating a new loan then the power of attorney must first be approved by the lender and by the title company.
11.  The original power of attorney must be at the title company at closing as it must be recorded with the county clerk, prior to any other transaction documents being recorded.
12.  Section 36A of the Texas Probate Code has been amended as to 'Durable Power of Attorney'. The purpose of such a power of attorney is to allow an agent appointed to act on behalf of the principal notwithstanding later disability or incompetence of the principal. Requirements for a 'Durable Power of Attorney' are clearly delineated in the statute.

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