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How Can A Power Of Attorney Be Used During A Real Estate Transaction? - YouTube
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Hey everybody today,
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we're going to talk about how a power of
attorney can be used in a real estate.
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State transaction.
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I'm Tiffany Webber. I'm a closing
attorney and Mooresville, North Carolina,
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and we see powers of attorney used in
real estate transactions all the time.
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So you may be wondering
what types there are,
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how they can be employed
if they're even necessary.
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So we're going to talk about that today.
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The first type of a power of attorney
that someone can have is called a durable
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power of attorney. And again, this
is specific to North Carolina.
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So if you're in another state, talk to
an attorney in your state about this,
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but in North Carolina,
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a durable power of attorney usually
has broad powers that you can
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delegate to someone else to be able to
step in and help you in times when you're
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not able to accomplish
those tasks yourself. Um,
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it's not always for a
bad reason. For example,
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you could be in a different country
and maybe you need to buy or sell real
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estate.
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And you have someone that is in the
state where the transaction is located.
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That can sign the
documents for you. In fact,
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that is a common reason why a power
of attorney is used in real estate.
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The other reason could be
that someone is maybe too ill.
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Usually a durable power of attorney is
drafted by an estate planning attorney as
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part of your estate plan. So that's
why it has broad powers. Hey,
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so if you are enjoying this video,
go ahead and give it a thumbs up.
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So I know that you're learning
a thing or two. All right, now,
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back to the video. Now,
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the other type of power of attorney that
we see used in real estate transactions
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are specific to a certain real property.
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So say you own five properties and you're
selling one of them and you want to
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designate a person to be able to go to
the closing appointment and sign the
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closing documents for you. Well,
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rather than giving them broad authority
to handle all sorts of things in your
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life,
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like your bank accounts and all of your
properties and everything like that,
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you can designate that this person is
only authorized to sign for property
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number one and not
properties two through five.
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You can also have a power of attorney
that's limited to expire on a certain
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date. So it will automatically
expire after 90 days or on,
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uh, May 30th or whatever it may be.
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So those are usually used more often
in real estate transactions because
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someone will realize, Oh my goodness,
I'm traveling on the day of closing. Um,
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I can't get the document
signed in advance,
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so I will send so-and-so
to sign the document.
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So I need to get a power of attorney
drafted to that effect. Now,
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one thing about using a power of attorney
in a real estate transaction is do not
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just send someone to the closing
appointment in your place with a power of
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attorney that has never been seen by the
closing attorney or any of the parties
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before, because it will delay things
we need to know ahead of time.
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If you intend to use a power of attorney,
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because all of the documents have to
be drafted a certain way to be valid.
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So if you are contemplating
real estate transaction or say,
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you've just gone under contract and you
get the closing date and you realize
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that you can't attend,
and there is no other way,
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you can get the document
signed in advance,
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simply reach out to the closing attorney
and let them know if you don't already
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have an attorney that is working
with you on your estate documents,
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or that you can call to get
a power of attorney drafted.
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Your closing attorney can help with that.
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And all you have to do is let them know
who you want to designate as your agent
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give of course,
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full legal name and correct spelling of
the person that you intend to designate.
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You will have to sign it
in advance before a notary.
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So you will sign that one
document, uh, before a notary,
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wherever you can and get the original to
the closing attorney so that it can be
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used and recorded in the register of
deeds to make all of the documents signed
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by the power of attorney valid.
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Some common pitfalls that can arise
when someone wants to use a power of
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attorney are simple mistakes that
can be avoided with some planning.
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For example, uh, you have to have
a power of attorney notarized.
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You can't just sign one and send it
into the closing attorney and say,
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here you go, because it has to be, um,
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sworn and signed in front of a notary
public that can attest to the identity of
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the person that's signing the document.
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Another common mistake is that maybe
you do have a validly executed power of
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attorney, but you never
provide the original.
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And the original is incredibly important
because it has to be recorded at the
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register of deeds. You
can not record a copy.
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So the original has to be provided
to the closing attorney for it to be
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effective. If you just send
a copy, you can't use it.
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And then you've wasted all of the
effort to get it in the first place.
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So maybe you have learned today that
powers of attorney are not uncommon.
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In fact, they can be quite helpful when
they are used with proper planning and
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preparation. We see these all the time.
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So if you are ever doing a closing
in our office, then don't be alarmed.
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If you need one and you call us and
we say, no problem, we got this.
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Maybe you've never seen
our channel before then.
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Maybe you don't know that we love to
make videos just like this one to educate
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everyone involved in a real
estate transaction about
the legal process of a real
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estate closing that's buyers,
sellers, real estate agents,
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your family and friends that are just
excited that you're going to be buying a
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piece of property. Anyone who's
interested in real estate. So if that's,
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you we'd love for you to subscribe to
our channel so we can bring you more
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videos, just like this
one. I'm Tiffany Weber,
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real estate attorney in
Morrisville, North Carolina.
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And I'll see you in the next video.
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