The Appropriate Use of a Power of Attorney in a Florida Real Estate Closing

At Sun National Title Company, we often work with clients who need flexibility during the real estate closing process. Life doesn’t always operate on our schedules — travel, medical issues, or military deployment can make it difficult for a buyer or seller to be physically present at closing. In these cases, a Power of Attorney (POA) can be a valuable tool — when used correctly.

What is a Power of Attorney?

A Power of Attorney is a legal document that gives one person (the "agent" or "attorney-in-fact") the authority to act on behalf of another person (the "principal"). In a real estate context, this can include signing documents, transferring title, or handling financial transactions related to a closing.

However, Florida law is specific about how and when a POA can be used — especially in real estate transactions. Let's explore what’s required and how to ensure the POA is valid and accepted in your real estate closing.

1. The POA Must Be Specific to Real Estate

A general POA may not be sufficient for a real estate closing in Florida. The document should explicitly authorize the agent to handle real estate matters, such as buying, selling, mortgaging, or conveying property. A title company, like Sun National Title, needs clear authority before allowing an agent to sign on behalf of a party in the transaction.

Best Practice:

Use a Durable Power of Attorney that includes specific language referencing Florida Statute § 709.2201, which outlines powers related to real property transactions.

2. The POA Must Be Properly Executed and Notarized

Under Florida law, the POA must be:

• In writing,

• Signed by the principal,

• Two witnesses must also sign,

• Notarized properly.

Additionally, the original or a certified copy of the POA must be recorded with the county where the property is located when transferring title.

3. The POA Must Be Valid at the Time of Closing

Some POAs are limited by time or are springing POAs, which only take effect under certain conditions (e.g., incapacitation). These types often present complications and are typically not acceptable for real estate closings in Florida.

Title companies and lenders generally do not accept springing POAs due to the complexity of verifying triggering conditions. Instead, a current and active durable POA is usually required.

4. Lender and Title Company Approval is Required

If the transaction involves a mortgage, the lender must approve the use of the POA in writing before closing. Most lenders have strict requirements and may even require the use of a POA form they provide.

At Sun National Title Company, we also review and approve the POA in advance to ensure there are no issues that could delay the transaction or impact title insurability.

5. Avoid Red Flags and Delays

Certain circumstances can raise red flags with underwriters or lenders, including:

• An agent with a financial interest in the transaction.

• A last-minute POA with no clear explanation.

• A POA executed out-of-state without Florida-compliant formalities.

To avoid closing delays, always provide the POA to your title agent as early as possible for review.

Final Thoughts

While a Power of Attorney can be a practical solution for real estate closings, it must be executed and used carefully to comply with Florida law and title insurance requirements. At Sun National Title Company, our experienced team is here to guide you through the process and ensure your transaction goes smoothly — whether you’re signing in person or by proxy.

If you’re planning to use a POA in an upcoming closing, contact us early in the process so we can help review the documentation and coordinate with all parties involved.

Sun National Title Company Trusted. Experienced. Local.📞 Contact us at 239-334-3321📧 Email: orders@closewithsun.com🌐 Visit: www.closewithsun.com