why would title company need original of power of attorney

While a copy of the Power of Attorney document will be acceptable for initial review, the title company will need to have the original in their possession absolutely no later than the day of closing. In order for the mortgage to be correctly recorded, the original POA will need to be sent for recording as well.

Full Answer

What is a power of attorney in a title company?

You Need an Original When a POA is used by an agent to convey or encumber property the title company will need the original signed and notarized document so that it can be recorded with the conveyance deed or deed of trust. Make sure you don’t show up at closing with just a photocopy. You Need Lender Approval

Do I need a power of attorney for a real estate transaction?

Feb 24, 2015 · In order to process and close a loan with a Power of Attorney document, it is vital to provide your title company with the related documents as early in the process as possible. While a copy of the Power of Attorney document will be acceptable for initial review, the title company will need to have the original in their possession absolutely no later than the day of …

Do you need a copy of a power of attorney?

The original POA form must be given to Escrow early in the transaction so that it can be approved, not only by the Buyer’s Lender, but also by the Title Company insuring the transaction, especially if this is a form that was drawn by someone other than an Escrow Officer familiar with the approved forms.

Why do insurance companies ask for power of attorney?

Sep 06, 2016 · Title companies often receive requests to allow one or more parties to a real estate transaction to sign documents through the use of a Power of Attorney. A Power of Attorney is a written document in which an individual, called the Principal, gives authority to another individual, called the Agent, to act on the Principal’s behalf. In Texas, Power of Attorney …

What is POA in closing documents?

This document allows an individual, referred to as the principal, to give someone else, their attorney-in-fact or agent, the power to act on the principal’s behalf. It’s pretty simple really. The principal signs the POA in advance and then the agent signs all the closing documents on behalf of the principal.

Can a lender approve a POA?

If the transaction involves a POA for the borrower, the lender will want to approve the form. In fact, sometimes the lender won’t even agree to have the borrower sign via POA. Likewise, your lender may dictate a particular manner in which the agent must sign. Make sure to get the POA to the lender well in advance.

What is POA in real estate?

This means that the POA is explicitly applicable to the purchase or sale of a specific real property identified by a legal description . The most common form of this is to include the legal description in the POA and call out the purpose of the POA as being for the purchase or sale of that specific legal description. Title companies will have their preferred form of POA available that covers this requirement.

What is a POA?

A Basic Understanding. A Power of Attorney (“POA”) is a document that allows for a Principal to hand over authority to an Agent to act on behalf of the Principal. Another name for the Agent is “Attorney-in-Fact”. The authority that a Principal gives to an Agent may be limited or unlimited according to the language in the POA.

How old is a POA?

The POA should not be more than 6 months old, preferably less than a month old . This is because the older the POA, the greater the chance it has been revoked. A POA may be revoked at any time by the Principal and this revocation is not evidenced by any recording or filing that the title company can discover.

Does a title company require an agent certification at closing?

Due to the danger of revocation, a title company may require that the agent execute an agent certification at the time of closing, attesting to the fact that the POA has not been revoked.

What is a power of attorney in Texas?

A Power of Attorney is a written document in which an individual, called the Principal, gives authority to another individual, called the Agent, to act on the Principal’s behalf. In Texas, Power of Attorney used in a real estate transaction must be recorded in the Real Property Records of the county where the property is located.

Who drafts a power of attorney?

The specific Power of Attorney is typically drafted by an attorney, for a fee, and is specific to the transaction being handled by the title company. Because it is drafted specifically for the transaction at hand, there are no other powers that can inadvertently be granted, and a termination date can be included in the document.

Where is Fidelity National Title located?

Fidelity National Title, 1512 Heights Blvd., Houston, TX 77008 (713) 529-8800.

Can a durable power of attorney be revoked?

Because a Statutory Durable Power of Attorney can grant the Agent a multitude of powers and be valid until revoked, I typically recommend that persons considering using a Statutory Durable Power of Attorney consult and attorney prior to using the document.

What is POA in real estate?

A Power of Attorney (POA) is a document in which a principal party appoints a fiduciary party to act on behalf of the principal party, typically in regard to legal affairs . The POA can be a useful tool in residential real estate transactions when a necessary party will be unavailable to execute documents prior to or attend the closing.

What is POA in trust?

If a Corporation, Company, LLC or Trustee of a trust is the entity in need of a substituted signer because the usual authorized signer will not be available, a POA may not be the appropriate document. When the principal party is a company or corporation, a Resolution by the members or shareholders is the appropriate document to appoint ...

Where is POA recorded?

In almost all cases, the original POA has to be recorded in the county where the property is located . In order to be recorded, the POA presented must contain the original signature of the principal, and it must be notarized. A copy of an unrecorded POA usually will be insufficient to consummate a real estate transaction.

Property Specific

• A person legally appointed by another to act as his or her agent in the transaction. It’s also important to understand the two specific parties in the Power of Attorney. 1. The PRINCIPALis the person granting another the power to act in their stead; the one who signs the POA document. 2…

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Time of Execution

Agent Certification

Durable Language