If a buyer or seller has given you power of attorney (POA) to complete a real estate transaction on their behalf, it’s natural to feel overwhelmed. Fortunately, most POA arrangements are much less complicated than they seem. In fact, once you understand the legal jargon, navigating the proceedings is relatively easy. In the meantime, here is what you should know about acting as the principal’s agent during a real estate proceeding. 

What Is Your Legal Obligation?

Upon being named an agent in a real estate POA, you assume a fiduciary responsibility to the principal. That means you must prioritize their best interests at every stage of the transaction. Failing to protect the principal’s investment as either the seller or buyer could warrant legal action brought by either the principal or by another interested party. 

What Is Your Scope of Authority?

Your scope of authority will depend on the terms of the power of attorney. In most real estate POA arrangements, the agent can buy or sell property on behalf of the principal; however, they can usually only do so once. Typically, real estate POAs are established to close on a particular property and are therefore considered “limited.” If you have been assigned to manage the principal’s money indefinitely, though, you might have a general arrangement in place. A general POA grants the agent a broad range of authority and allows them to perform virtually any financial function on behalf of the principal. 

If you want to establish a power of attorney in Hawaii, turn to Ng & Niebling. Based in Honolulu, this practice has been providing strategic legal counsel to individuals and families throughout Oahu for more than 40 years. They are proud to help clients prepare for all eventualities, in areas including estate planning, conservatorships, and probate. Visit their website to learn more about Jeffrey R. Niebling or his firm, or call (808) 732-7788 to schedule a free initial consultation.