A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and checks, for example.

It is up to the lender as to whether they will allow mortgage documents to be signed using a power of attorney.

Many do not because the validity of the power of attorney can later be challenged in court. If the challenge is successful the lender is left in a very vulnerable position.

In real estate, a Non-durable Special POA is often used by out-of-state homeowners to buy and sell properties. It is also used by many investors to grant real estate agents the authority to manage investment properties, authorities such as writing checks to make mortgage payments and to pay for necessary repairs and expenses. The Principal can specify on the POA the specific authorities granted and the maximum dollar amount the Agent is authorized to decide upon. POA's are witnessed, notarized and recorded in the county clerks office. Because POA's are powerful and important legal documents, one should always consult an attorney before executing a Power-of-Attorney.

The power of attorney document will normally have to be approved by the lender prior to the signing of the closing documents.

Power of Attorney (POA) comes in two forms, general and specific. A general (or broad) POA gives the Agent or Attorney-in-Fact (the person to whom authority is assigned) the authority to carry out multiple different financial duties, such as to sell or mortgage real properties, buy or sell stocks and bonds. A specific POA (sometimes refered to as Special POA or Limited POA) gives the Attorney-in-Fact the authority to act on a specific transaction, such as a real estate closing.

Power of Attorney can be Durable, Nondurable, or Springing. A Durable POA remains in effect even if the Principal (the person on whose behalf the Attorney-in-Fact acts) becomes mentally incompetent. A Durable Power of Attorney can only be revoked by the Principle, a court, or upon the death of the Principal. A Non-durable POA becomes void once the Principal is declared mentally incompetent. In the world of real estate, a Non-durable Limited Power of Attorney is almost always used to designate to the Attorney in Fact the necessary authority to conduct transactions. A Springing POA becomes effective only upon the occurance of a certain situation, usually upon the Principal's mental incapacity.

If for one reason or another you will be unable to attend your closing in person you may need to appoint a trusted person a specific power of attorney to attend the closing and sign the documents in your absence. Be sure to let all parties know as far in advance as possible if you need a power of attorney so everyone will have time to make proper preprations.