For many reasons clients may want to use a power of attorney when executing documents in a real estate transaction, either a refinance or a purchase. In a typical situation one spouse may want to sign for the other and in certain situations it is a guardian that is signing for an incapacitated individual.

In both situations there are certain requirements and recitations that must be included in the power of attorney. Most lenders will require that the power of attorney contain the following information:

1. The address and legal description of the specific property involved in the transaction.

2. If a seller is using a power of attorney it must state that the attorney-in-fact can convey the property and not just sell the property.

3. The amount of the financing.

4. Two witnesses and and notary. If the notary is signing as a witness, she must sign separately as a witness. You can not consider the notarization as a witnesses signature.

Some lenders may have additional requirements so it is important that the lender has reviewed the power of attorney before you rely on it. Relying on a client’s attorney will not protect you.

Soldiers and Sailors Civil Relief Act

With more than 100,000 US troops overseas on active duty in Iraq and Afghanistan it is important to take note of the Soldiers and Sailors Civil Relief Act of 1940. The Act prevents foreclosures on property owned by active duty military personnel. The Act applies to obligations entered into prior to the start of active duty. No foreclosure sale may take place while military personnel are on active duty or for three months after discharge, unless there is court approval.

Laws vary from state to state and the above does not constitute legal advice.
Article submitted by Jonathon Leinwand. Jonathon is a licensed attorney specializing in realestate and mortgage related matters. He can be reached at jonathan@jdlpa.com

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