An owner who will be overseas for six months wants another person to be able to sign the deed and the closing documents in the owner's name. Which written instrument gives that person the authority to sign?
Correct Answer
D) A power of attorney executed and acknowledged by the owner, naming an attorney-in-fact
A power of attorney is the written instrument by which a principal authorizes an agent, called the attorney-in-fact, to act and sign in the principal's name. When the authority will be used to sign a deed or another recordable instrument, the power of attorney is signed and acknowledged with the same formality as the deed and is normally recorded with it. Appointing a broker under a listing agreement creates an agency to market the property and produce a buyer, but it carries no authority to execute the conveyance. A sworn statement proves facts and an escrow letter gives instructions; neither one delegates the power to sign in another person's name.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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