Closing With a Power of Attorney in Virginia

Sometimes you cannot be the one holding the pen. You are deployed, traveling, recovering, or simply somewhere else on closing day. A power of attorney lets someone you trust sign for you, but it has to be set up the right way, and early.

Written by Adam L. Engel, Esq., Principal and real estate attorney at Prime Title & Escrow

A power of attorney is a powerful tool and a common one, and it is also the document that causes the most last minute stress when it is left to the end. Let me explain how it works in a Virginia closing so yours is ready well before the table.

A specific power of attorney is the norm

For a closing, we usually use a limited or specific power of attorney that names the property and the transaction, rather than a broad general one. Lenders and title underwriters strongly prefer the narrow version, because it leaves no doubt about exactly what your agent is allowed to do.

Why your lender must approve it in advance

Your lender has to agree to let an agent sign the loan documents, and they review the power of attorney before closing. This is the step people forget, and it is the one that causes the scramble. The fix is simple: get the document to me early, so your lender and the title underwriter can approve it with time to spare.

It must be properly executed, and usually recorded

The power of attorney has to be signed and notarized correctly, and when it is used to convey or encumber Virginia real estate, it is typically recorded in the circuit court alongside the deed. That recording is part of what makes your agent’s signature hold up, which is why the wording and the execution matter.

The person granting it must be alive and competent

A power of attorney is only valid while the person who granted it is living and competent. If your circumstances change before signing, tell me immediately, because it affects whether the document can still be used. This is not a detail to discover at the table.

How I handle it

I work with you and your lender to get the right power of attorney drafted or reviewed, approved, notarized, and recorded, so your agent can sign and your closing stays on track. If a power of attorney turns out not to be the right fit, a remote or mail away closing may be, and I will tell you which one suits your situation. For the full path your signing fits into, see what happens at a Virginia closing.

Choosing the right agent, and avoiding the pitfalls

The person you name as your agent should be someone you trust completely, because for the moment of signing they stand in your shoes. Many buyers choose a spouse, a parent, an adult child, or a close friend who is local to the closing. What matters is that your agent understands the transaction, will be available on the day, and will sign exactly what the closing requires and nothing more. Because we use a specific power of attorney written for this purpose, your agent’s authority is naturally limited to it.

A few pitfalls are worth avoiding. Do not wait until the final week to raise a power of attorney, because the lender and the title underwriter both need time to approve it. Do not assume a general power of attorney you signed years ago will be accepted, because lenders often want one tailored to the transaction. And do not let the document sit unsigned or unnotarized, because an execution error can undo it. When you bring me into this early, none of these become a problem. If your situation is unusual, tell me, and we will find the approach that holds up.

Finally, keep the original power of attorney safe and let me know where it is. When it needs to be recorded with your deed, the circuit court will want a properly executed version, and having it ready keeps your closing moving rather than waiting on a missing page.

This article is general information about using a power of attorney to close in Virginia. It is not legal advice for your specific transaction, and requirements vary by lender and document. Please confirm what your closing needs with me directly.