A Florida real estate power of attorney (“FREPOA”) is a written legal document that authorizes any designated person who is 18 years of age (the agent) or older to act on behalf of the principal (the issuer of the power of attorney) to execute a Florida real estate transaction.

FREPOAs are often limited in scope to a specific real estate transaction and are typically valid through a specific date. For example, FREPOAs can authorize an agent to either:

sign the deed, mortgage, and other documentation to purchase a particular property, or

sign a property lease that binds the principal as either a landlord or tenant.

FREPOAs, like other powers of attorney in the State of Florida, are governed by Florida Statutes 709.2101-709.2402.

Obtaining a FREPOA

To obtain a Florida real estate power of attorney, individuals must adhere to specific legal procedures. Firstly, it’s essential to draft the document, outlining the designated agent’s authority over real estate matters. The FREPOA must comply with Florida state laws, specifying the agent’s responsibilities and limitations. Notably, the document requires two witnesses and notarization to validate its authenticity. This ensures that the agent’s authority is legally recognized and upheld.

Once properly executed, the FREPOA becomes a crucial tool in real estate transactions. Any documents the agent executes under its authority will likely include the FREPOA in their records. This inclusion provides clarity and transparency, safeguarding the interests of all parties involved. Additionally, it serves as a legal reference point, establishing the agent’s authorization to act on behalf of the principal in real estate matters.

It’s important to note that the language of the FREPOA doesn’t always impose limitations on the agent’s powers. Non-limiting FREPOAs can be broad, granting agents authority to undertake various actions, such as making gifts or changing beneficiaries where permitted by law. However, unless the FREPOA explicitly provides for special powers, engaging in such actions would necessitate special approval from the principal. This ensures that the agent operates within the bounds of the principal’s intentions and legal requirements, maintaining accountability and trust in the real estate transaction process.

Incapacitation, Incompetency and Death

FREPOAs play a crucial role in authorizing agents to act on behalf of principals who become unable to handle their own affairs due to an accident or illness. This incapacitation can be temporary or permanent, leaving individuals unable to manage their real estate matters effectively. In such situations, the FREPOA empowers designated agents to make decisions and execute transactions related to the principal’s real estate holdings, ensuring continuity and protection of their interests.

“FREPOAs play a crucial role in authorizing agents to act on behalf of principals who become unable to handle their own affairs due to accident or illness.”

Florida’s statutes mandate that FREPOAs used in this capacity must include language that enables them to survive the incompetency of the principal. This provision ensures that even if the principal becomes incapacitated, the FREPOA remains valid and effective, allowing the agent to continue acting on their behalf. Such FREPOAs are commonly referred to as “durable” powers of attorney, as they endure beyond the principal’s capacity to make decisions.

It’s important to note that while a durable power of attorney enables agents to act on behalf of incapacitated principals, it does not extend beyond the principal’s death. Upon the principal’s passing, the powers granted to the agent through the FREPOA come to an end. Consequently, the agent can no longer utilize the Florida Real Estate Power of Attorney to act on behalf of the deceased principal’s estate. Instead, other legal documents, such as wills or trusts, govern the distribution and management of the deceased principal’s assets, superseding the authority granted by the FREPOA. This transition ensures that the principal’s wishes are carried out according to their estate planning documents, maintaining the integrity and legality of the real estate transactions involved.

The Importance of an Attorney

Hiring a lawyer to draft a Power of Attorney (POA) document is crucial due to the complex legal implications and the various options available. POA documents come in different forms, each with its own set of controls and limitations on what an agent can or cannot do. From general to limited or durable POAs, the choices can be overwhelming and require careful consideration based on individual circumstances. An experienced estate planning and real estate attorney can decipher these options and execute them effectively to meet the principal’s specific needs.

One of the primary reasons to enlist the expertise of a lawyer is to ensure that the POA document protects the principal’s best interests and rights. A lawyer can tailor the document to reflect the principal’s intentions accurately, including specific provisions and safeguards to prevent abuse or misuse of power by the agent. This personalized approach helps to mitigate potential risks and conflicts, providing peace of mind for both the principal and their loved ones.

Moreover, navigating the legal intricacies surrounding POA documents requires a deep understanding of state laws and regulations. An experienced lawyer can interpret these laws and ensure compliance, avoiding potential pitfalls or invalidations of the document. By leveraging their expertise, lawyers can draft POA documents that stand up to legal scrutiny and serve as reliable instruments for the principal’s estate planning and real estate management needs. Ultimately, investing in professional legal guidance for drafting a POA document can provide invaluable protection and assurance for all parties involved.

South Florida Law

South Florida Law is a full-service estate planning, business and real estate law firm that can assist owners of Florida property in employing a variety of strategies and managing a wide variety of transaction and contract types. The best time to begin planning for potential incapacitation with a durable power of attorney is before it is needed. That said, when a Florida Real Estate Power of Attorney is needed urgently, the situation’s complexity may call for experienced advice before taking the first step. Contact us today for a consultation by calling (954) 900-8885 or via our contact form.