Power of Attorney gives another person the authority to manage your property while you are still alive. You are the Principle and the person you give authority to is called the Agent. The Agent can do anything with your property that is stated in the Power of Attorney.
It is recommended the Power of Attorney be executed by the Principal within a year of its’ execution. Every Power of Attorney will be considered on a case by case basis by underwriting, but an aging Power of Attorney can cause concern regarding the risk of fraud. A Power of Attorney should not used as a matter of convenience; There are strict laws in the State of Maryland governing the use of a Power of Attorney in a real estate transaction.
If a power of attorney is anticipated in a transaction, it is best to consult with the title company as soon as possible to ensure all documents are drafted accordingly for a timely settlement. For a buyer using a power of attorney, the lender must first review and approve both the use of a power of attorney and the verbiage used in the power of attorney.