Attorney-In-Fact

In real estate, an “attorney in fact” refers to an individual who is authorized to act on behalf of another person, known as the principal, in legal matters related to real estate transactions. This authority is typically granted through a legal document called a power of attorney (POA), in which the principal designates someone else to make decisions and take actions on their behalf.

An attorney in fact may have a wide range of powers related to real estate, depending on the specific terms and scope outlined in the power of attorney document. These powers can include signing contracts, deeds, mortgages, leases, and other legal documents; negotiating terms of sale or purchase; handling closing proceedings; and managing property-related finances or investments.

The role of an attorney in fact in real estate transactions is crucial, as they act as the legal representative of the principal and have a fiduciary duty to act in the principal’s best interests. They must exercise their powers responsibly, ethically, and in accordance with the terms of the power of attorney document.

Attorneys in fact are often appointed in situations where the principal is unable to handle their own affairs due to illness, incapacity, absence, or convenience. It’s essential for principals to carefully consider whom they appoint as their attorney in fact and to clearly define the scope and limitations of their authority in the power of attorney document. Additionally, real estate professionals and other parties involved in transactions must verify the validity and authority of the attorney in fact to ensure that the transaction proceeds smoothly and legally.