If you’re buying or selling residential real estate in Iowa, a power of attorney (POA) can be a useful tool. A POA allows a trusted agent to act on behalf of the principal in a transaction. In Iowa, a completed POA must be signed by the principal and notarized.
Why Use a Power of Attorney in a Real Estate Closing?
A POA can expedite the closing process when a necessary party, such as the buyer or seller, is unavailable due to unavoidable scheduling conflicts, military service, or out-of-state travel.
When is a Power of Attorney Effective?
POA expedites closing when a party is unavailable due to conflicts, military service, or out-of-state travel. The power of attorney document is usually effective the date it is signed for a period of 3-6 months, when drafted specifically for use with a real estate transaction. Both the effective or termination date can be customized within the POA itself.
What Can an Agent Do Concerning Real Property?
An agent with a POA can sell, exchange, convey, apply permits and manage real property on behalf of the principal. However, the agent must act in the best interests of the principal and avoid conflicts of interest.
Who Can I Name as My Agent?
It’s typical for most Iowans to select a spouse, family member, or friend. It’s important to designate an alternate agent in case the primary agent is unwilling or unable to perform their duties. Naming multiple individuals as co-attorneys-in-fact can lead to conflicts in decision-making, so it’s best to name just one alternative.
Can I Revoke My Power of Attorney?
A principal can revoke a POA at any time by informing the agent orally or in writing.
When Does My POA Terminate?
A POA ends on death, incapacity, revocation or purpose completion unless durable.
Does an Agent’s Authority Ever Terminate?
An agent’s authority also terminates upon the principal’s revocation or death, as well as the agent’s death, incapacity, or resignation. A POA ends if the agent abused the principal or is convicted of dependent adult abuse.
Why Should You Work With an Experienced Iowa Real Estate Attorney?
It’s best to have an experienced Iowa real estate attorney draft a POA for you. If you have any questions about a POA when buying or selling residential real estate, contact Danilson Law for assistance.
A power of attorney for real estate is a valuable tool that can make the closing process easier when a necessary party is unavailable. By designating a trusted agent, the principal can actively ensure the representation of their interests in property sale, closing, or management.
