
Which Power of Attorney Do You Need to Buy or Sell Property?
If you’re preparing to buy or sell a property in Georgia, you may hear the term Power of Attorney (POA). But what does it mean—and why might you need one in a real estate transaction?
What Is a Power of Attorney?
A Power of Attorney (POA) is a written document that authorizes one person (the Agent or Attorney-in-Fact) to act on behalf of another person (the Principal).
In simple terms, it gives the agent the legal authority to carry out specific acts or make decisions for the principal.
Which POA Do I Need for Real Estate?
To buy or sell property, you’ll need a Specific, Durable Power of Attorney.
Specific
A Specific POA means your agent is authorized only to buy or sell property on your behalf.
- A General POA (like “I allow Jane Doe to handle all my affairs”) is not enough. It increases the risk of fraud.
- To reduce that risk, include the legal description of the property in the POA—especially if you own multiple properties.
Durable
A Durable POA stays valid even if you become incapacitated and can’t sign documents yourself.
- Always state clearly in your POA whether it should be durable.
- This avoids confusion during your transaction.
Why Does the Closing Attorney Need the Original?
In Georgia, a POA must be notarized and/or witnessed.
To be recorded, it must be executed with the same formalities as a deed. That’s why closing attorneys require the original document—not just a copy.
Are There Limits on an Agent’s Powers?
Yes. Even with a valid POA, your agent (Attorney-in-Fact) cannot:
- Delegate their powers to someone else.
- Create a deed, mortgage, or release without valuable consideration for you.
- Use your property for their own personal gain.
- Transfer your property to themselves, forgive their own debts to you, or mortgage your property for their own benefit.
When Does a POA End?
A Power of Attorney ends when:
- The Principal dies.
- The Principal revokes it.
- The Attorney-in-Fact renounces it or becomes incapacitated.
- The Principal files for bankruptcy.
A Power of Attorney can be a powerful tool in real estate transactions—but only if it’s drafted correctly. If you need guidance on setting up a POA for your property sale or purchase, our team is here to help. Contact us today for personalized advice.
