Why closings use powers of attorney
Common reasons include military deployment, overseas work, serious illness, or a co-owner in another state. The principal gives another person authority to sign particular documents on their behalf.
Have a closing coming up? The closing package (signing, scanbacks and courier).
A closing is not a casual use of the tool. Many lenders accept a power of attorney only with advance approval.
What gets reviewed first
Expect them to want a copy of the document early. They check that it covers real estate transactions, that it was properly signed and notarized, that it is current, and that the agent's powers match the deal. Some require that it be recorded in the county before or with the deed.
Lenders may have additional demands, such as a specific power for the loan, or may refuse to use one at all for certain products.
How the agent signs
The attorney-in-fact signs the closing documents with a signature line that shows capacity, commonly the principal's name followed by the agent's name and a phrase such as attorney-in-fact. The exact form is dictated by the title company.
The notary identifies the attorney-in-fact, who is the person before them, and completes a certificate showing the signer's role.
Common obstacles
A power of attorney that is old, limited to unrelated matters or lacking a notarization may not be accepted. A principal who has died or lost capacity ends most powers. A buyer who has not seen the final numbers should not be signing by proxy.
Because a power of attorney can have large consequences, ask an attorney if it fits your situation. A notary cannot tell you whether it is valid.
Alternatives
If time allows, a mail-away signing in front of a notary where the principal lives, or a remote online notarization where permitted, may be simpler. These keep the principal in control and avoid questions about authority.
Questions to ask the title company and protecting the principal
Do you accept this power of attorney, or do you need a new one for this transaction? Must it be recorded? Does the lender have its own form? Do you need proof that the principal is alive and has capacity? Who signs the settlement statement?
Getting yes or no answers in writing a few days ahead avoids a failed closing on the final day.
A power of attorney gives someone else the pen, so choose the person carefully. The principal should see the closing numbers and approve them in advance. Some principals limit the document to one property and one date range. An attorney can draft such a limit. Keep copies of everything the attorney-in-fact signed.
Keep in mind that a power of attorney ends in several situations, including the principal's death, revocation, or the expiration date written in the document. Sign the closing documents while the authority is clearly in force, and keep proof of the date on which each paper was signed. If the principal's health is in doubt, speak with an attorney before the closing, not after problems arise.
A typical appointment, step by step
The title company receives the power of attorney early and sends it to the lender and underwriter for approval. On closing day, the agent brings photo ID and signs for the principal in the way the document allows, often signing the principal's name followed by the agent's name and title. The notary checks the agent's identity and completes the certificate that fits how the document is signed. The most common delay is that the lender never saw the power of attorney in advance.
Mistakes that get documents rejected
Waiting until closing day to show the document is the biggest. Others are using a document that does not list real estate powers, an agent whose name does not match their ID, or a copy where the original or a recorded copy is required. Ask the title company what they need before the signing is scheduled.
Checklist before you book
Send the power of attorney to the title company now. Ask whether a recorded copy or the original is required. Confirm the agent's ID matches the document. Ask whether the lender wants a particular form or certification.
Short answer: can someone close with a power of attorney?
Often yes, but only if the lender, the title company and the document all agree. The power of attorney has to give the agent authority over real estate or this specific transaction, and the lender usually has to approve it before closing day. A general form that never mentions real estate is the one most likely to be turned down.
What lenders and title companies commonly ask for
Requirements differ by lender and title company, so treat this as a list of things to ask about rather than a rule. Many want to review the power of attorney days before closing, and some want it to name the property or the loan. Some ask for a statement that the principal is alive and has not revoked the document, since a power of attorney ends at the principal's death. When the deed is signed by an agent, the power of attorney is typically recorded with it, so ask whether you need the original or a certified copy.
A notary cannot tell you whether your power of attorney is good enough, and cannot draft or change one. Questions about whether the document works for your closing belong with the title company, the lender or an attorney.
How the agent signs
The agent usually signs the principal's name, then adds their own name and a title such as attorney-in-fact, in the form the document or the title company specifies. A common pattern is the principal's name, then the word by, then the agent's signature and capacity. The notary checks the agent's photo ID, which must match the name on the power of attorney, and completes the certificate for the agent's signature in that capacity. Agree the exact wording with the title company beforehand, because a correction at the table can delay the closing.
Questions people ask
Does the principal have to be there? Not if the lender and title company accept the power of attorney, but some lenders still require a signing by the borrower, so ask early. Can the closing be done remotely? Sometimes, depending on the lender and the county where the deed is recorded, so confirm before you book. What if the principal is overseas? A power of attorney signed abroad usually needs to be notarized there and may need an apostille, which adds time. Start that step as soon as the contract is signed.
Common questions
Does the notary check that the power of attorney is valid?
The notary confirms who is signing and may note the capacity. Legal sufficiency of the power is for the title company and counsel to decide.
Is a springing power of attorney accepted?
Some are, with extra proof that the triggering event occurred. Ask the title company early.
Can the attorney-in-fact be a buyer's agent?
That depends on the title company and applicable law. Conflicts of interest are a common concern.
More notary guides
- Power of attorney or directive notarized in a hospital
- Notary Financial Interest in a Transaction Explained
- Seller Financing: Signing the Note and Deed of Trust
This guide is general information, not legal advice. Fees and procedures change; check with the office involved or an attorney for your situation.