New Limited Power of Attorney for Real Property Transactions
QUESTION: A client has asked me whether he can use the new “Limited power of attorney for real property” statutory short form to close on a property he is purchasing. He said that he read about the form online, and he needs to be out of town on the day of closing but he knows someone who can sign for him. I have never heard of a special power of attorney form for real estate transactions. What is my client talking about?
ANSWER: On January 1st, 2018, a new chapter of North Carolina’s General Statutes took effect changing the law as to all powers of attorney executed on or after that date. The new law is located in Chapter 32C. Part of the new law includes a new form to use in real property transactions. The new form is found in N.C.G.S. § 32C-3-303 (page 29 of the bill in the link). It is anticipated that this new power of attorney form will prove very useful for real estate transactions in North Carolina.
If your client uses the new real estate short form power of attorney, he will be giving power to someone to act with full authority on his behalf as to: (1) the real estate to be purchased, (2) all the tangible personal property associated with the real estate, and (3) all the financial transactions relating to the real estate. The form is designed to be able to handle every part of a typical real estate transaction.
You should advise your client to seek legal advice about this form. It is a not a form that you will be able to prepare as a broker. To work in this transaction, the power of attorney must be signed, notarized, and recorded. If you have a closing attorney designated already, you can suggest that he speak with them about whether this form is appropriate for this transaction.
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