It is vitally important that you familiarize yourself with the following topics:
How can someone sign a document on behalf of another person?
Occasionally someone will attempt to sign a legal document on behalf of another party. These cases typically involve:
- a child signing for a parent
- a husband signing for a wife
- a boyfriend signing for his significant other
- a parent signing for an adult child
- one of two property owners signing for the other
Inevitably, the person signing for someone else will tell you: “It’s OK, I’m authorized to sign for him [or her]” However, there is only one way in which a third party can sign a document on behalf of another person with binding authority: with a valid, written, notarized Power of Attorney. That’s it. Only one way. The legally binding and enforceable way. If they want to do the business, make them produce the documentation from the start.
Situations like those described above can give rise to serious disputes and permit one or more of the parties to attempt to abrogate the contemplated transaction if you are negligent in dealing with third-party signatures. In this office we have had occasions in which agents lost commissions because they failed to obtain proper Power of Attorney for third parties signing for one or more of the parties to a listing, a lease or a contract. Remember: you won’t have trouble about this as long as everyone is happy with the deal, but you’ll be the first to get it in the neck from all sides when a dispute arises. Then it will be too late to demand and obtain the documentation you need to prove that the person signing for some else had the correct authority to do so.
A Power of Attorney may be general or limited, may have specific acts that it authorizes or a specific time duration, but it must be:
- signed by the grantor (the person who is authorizing the thirds party to sign on his/her behalf)
- notarized
- have two witnesses signatures
for us to accept it. A Power-of-Attorney is an important legal document and should be prepared by the Grantor’s attorney. Remember, under no circumstances is any agent to attempt to fill out and prepare a power of Attorney (unless you also hold a license to practice law in the State of Florida). Fine for disregarding this rule $50.00 first violation, no warnings. Subsequent violations will invalidate your entitlement to a commission on the transaction in which this document is used.
It is important that you recognize how a Power of Attorney is used. The person authorized to sign for some else is called the “Attorney in Fact”. He or she signs his/her normal signature (that is, does not forge or imitate the signature of the person he/she represents) and adds the language: “Attorney in Fact for ______”. Sometimes you will just see “POA” although the first construction is to be preferred.
Thus if you take a listing from someone who is representing that he/she has the authority to sign for the actual owner or owners, you must obtain a Power of Attorney from each person whose actual signature is not being obtained. For example: if Mom and Dad want Junior to sign their listing agreement you need a Power of Attorney document from Mom and from Dad naming Junior as their attorney-in-fact.
Using a Power-of-Attorney does not change the names of the parties to a contract, whether it be a listing agreement, a Memo-to-Lease, a Lease or a Sales Contract. Thus a lease for the property of Mr. “A” and Mrs. “B” to be signed by an Attorney-in-Fact would still name “Mr. A and Mrs. B” as Landlords. However, the signatures would be that of the Attorney-in-Fact for each party for whom a Power of Attorney is being used.
Can I sign for one or more of my customers with a Power of Attorney?
Occasionally we are asked by sellers whether someone from our office can sign documents under Power of Attorney (also known as “POA” or “Attorney-in-Fact”).
Buy the Beach Realty Group cannot accept the responsibility for acting in this capacity. No Buy the Beach Realty Group agent is authorized to serve as Attorney-in-Fact for any customer, or prospect with whom we are engaged in a transaction.
Sellers (or Buyers) requesting such a service should be counseled to retain an attorney to close the transaction on their behalf. Alternately, they can appoint a personal friend or other trusted party to serve in this capacity.