What type of powers of attorney are used in commercial real estate transactions?

In Utah, the main type of power of attorney used in commercial real estate transactions is a special power of attorney. A special power of attorney is a document that allows an individual or business entity (the “principal”) to assign a person (the “agent”) to act on their behalf in a real estate transaction. The document allows the agent to sign documents, make decisions, and take other actions related to the transaction that the principal would have taken if they were physically present. The agent has a fiduciary obligation to act in the best interest of the principal. Thus, the principal should only grant a special power of attorney to a person they trust. Additionally, it is important for the principal to be aware of the scope and limitations of the agent’s powers. In Utah, special powers of attorney are generally used to facilitate the buying or selling of commercial real estate or the completion of related tasks, such as title searches. Another type of power of attorney used in Utah commercial real estate transactions is a general power of attorney. This type of document is typically used when the principal needs to delegate legal authority to the agent without specifying a particular type of action. In comparison, a special power of attorney is more limited in scope and generally used for a single transaction. Ultimately, it is important for both the principal and the agent to understand the scope of the power of attorney and the duties of the agent. Knowing the type of power of attorney used and the limits of the agent’s authority will help to ensure a smooth commercial real estate transaction in Utah.

Related FAQs

What type of powers of attorney are used in commercial real estate transactions?

Related FAQs

Related Blog Posts