Sometimes, you cannot always be present when you need to transfer real estate, a vehicle or other property. In this case, you can give someone the authority to act on your behalf in the transaction using a limited power of attorney. This power of attorney is only limited to the duration of the transaction.
Title Transfer Power of Attorney
The title transfer power of attorney allows a person, who is referred to as the “agent,” to act on behalf of the owner or buyer of the property. The owner or buyer of the property is called the “principal” on the power of attorney. The agent is considered to “owe” a duty to the principal by way of acting on their behalf. The agent has a duty to act in the best interests of the principal and should not act in a way that benefits themselves personally.
Real Estate Power of Attorney
One circumstance where a power of attorney is used is when someone becomes disabled and cannot act on their own behalf for a real estate transfer. In this case, the agent can sign the deed as either the buyer or the seller. This can be done without having to enter into guardianship or conservatorship. In this case, the power of attorney is only in effect for the real estate transfer and does not grant the agent any other powers.
Vehicle Transfer Power of Attorney
Power of attorney for transfer of ownership to a motor vehicle can be used when the original owner or buyer cannot be present for the transaction. This can occur if the person is out of the country, on military duty or incapacitated. In this case, a power of attorney for transfer of ownership to a motor vehicle can be used to conduct the title transfer.
Sometimes, this type of power of attorney is used when someone buys a car from a dealership to save the new owner the hassle of a trip to the state licensing authority. It is limited only to a single transaction.
Power of attorney for transfer of ownership to a motor vehicle or real estate is an excellent tool for convenience when the owner or buyer cannot be present in person. A title power of attorney differs from a durable power of attorney in that its time frame is limited. A durable power of attorney gives the agent a broader authority and can cover a range of transactions until the principal dies or circumstances change.
How to Use a Title Power of Attorney
To use a power of attorney to transfer a vehicle, you should visit the state Bureau of Motor Vehicles or the Department of Transportation in the state where the transaction will take place. You can find the appropriate forms on the website or by visiting them in person. You should fill out the forms as instructed. The agent might need access to your driver’s license, vehicle title, emissions certificate and odometer reading.
Once the form is prepared, the agent should find a public notary and sign it in front of them. When signing a transaction, the agent should sign it as, “John Doe, by Bob Smith as Agent under Power of Attorney.” Next, the agent can submit the paperwork to the appropriate agency and the action will be considered complete as soon as it is finished processing by the agency.
You can access an example of a limited power of attorney for the state of Georgia, but every state has a different format. This limited power of attorney is a useful tool for transactions that only occur one time when the owner or buyer cannot be present.
Adam Luehrs is a writer during the day and a voracious reader at night. He focuses mostly on finance writing and has a passion for real estate, credit card deals, and investing.