Life doesn’t always cooperate with closing day. Sellers relocate before the date arrives. Buyers travel for work. Elderly parents rely on their adult children to handle legal and financial matters on their behalf. It could be a myriad of scenarios! In situations like these, a Power of Attorney can seem like the obvious solution and often, it is.
But here’s the thing: not all closings in Florida will accept a POA, and some loan programs outright prohibit them. If you’re buying or selling real estate in Brevard County or Indian River County and you’re counting on a Power of Attorney to get you to the finish line, there are some critical things you need to know before closing day arrives.
What Is a Power of Attorney in Real Estate?
A Power of Attorney (POA) is a legal document that authorizes one person, called the agent or attorney-in-fact, to act on behalf of another person — called the principal — in legal, financial, or real estate matters.
In a real estate context, a POA allows the agent to sign closing documents, deed transfers, mortgage paperwork, and other transaction-related documents in the principal’s place. Instead of the buyer or seller sitting at the closing table, a trusted designee shows up and signs on their behalf.
It sounds straightforward. And when it works, it is. But there’s a lot that can go wrong when the details aren’t handled correctly, which is why your title company and lender need to be in the loop early.
Types of Power of Attorney Used in Florida Closings
Not every POA is created equal. Florida recognizes several types, and the one you use matters:
- Limited (Special) POA — A document authorizing a specific real estate transaction only.
- Durable POA — Remains effective even if the principal becomes incapacitated. Commonly used for aging relatives or those with health conditions.
- Specific Real Estate POA — A narrow POA tied to one specific closing, often prepared by the title company or closing attorney.
For most real estate closings, a limited or transaction-specific POA is the most appropriate and most commonly accepted. It’s narrowly tailored, which is exactly what lenders and title underwriters want to see.
When a POA Is Allowed at a Florida Closing
Florida law does permit the use of a Power of Attorney in real estate transactions — but only when it meets certain standards. A valid, acceptable POA in Florida typically must:
- Be signed and notarized in the presence of two witnesses (per Florida Statute §709.2105)
- Be specific enough to reference the property or transaction involved
- Be reviewed and pre-approved by the title company, it’s Underwriter’s Attorney and lender before closing
- Be executed by a principal who had full legal capacity at the time of signing
- The original POA must be provided at closing. Copies are not acceptable.
Cash transactions and seller-side closings tend to have more flexibility. If there’s no lender involved on the buyer’s side, the title company and its underwriter have more discretion to accept a well-drafted POA.
Pro tip: If you know a POA will be needed, bring it to your title company’s attention as early as possible — ideally before you’re under contract. Last-minute POA surprises are one of the most common causes of closing delays.
When a POA Is NOT Allowed at Closing
Here’s where things get sort of complicated and where a lot of buyers and sellers get caught off guard. We are happy to help answer or clarify any questions.
Certain loan programs either restrict or outright prohibit the use of a Power of Attorney on the buyer’s side of the transaction. This is where your lender’s guidelines take center stage:
FHA Loans
FHA loans do permit POAs, but they come with strict conditions. The borrower must have a legitimate reason they cannot appear at closing (such as active military service or a medical condition), and the lender must approve the use of the POA in writing before it can be used. In most cases, FHA will not allow a POA simply because it’s inconvenient for the buyer to attend.
VA Loans
VA loans may allow a POA under narrow circumstances, but the rules are especially strict. The use of a POA on a VA loan typically requires:
- Prior lender approval
- Documentation showing why the veteran cannot be present
- A POA that meets VA-specific requirements, which differ from standard Florida POA requirements
In practice, VA lenders are often hesitant to approve POA closings unless the situation is clear-cut (e.g., a deployed service member).
Conventional Loans (Fannie Mae / Freddie Mac)
Conventional loans vary by lender, but most lenders following Fannie Mae or Freddie Mac guidelines place significant restrictions on POA use. Many simply won’t allow it at all for purchase transactions. Others may allow it only in specific, documented circumstances with prior underwriter approval.
Lender-Specific Restrictions
Even beyond loan program guidelines, individual lenders can impose their own restrictions. Some lenders will only accept a POA that was drafted by their own legal team. Others require the agent to be a spouse or immediate family member. Some won’t accept a POA for the buyer under any circumstances.
Bottom line: Never assume your lender will accept a Power of Attorney. The conversation needs to happen well before you need it — not the morning of closing.
Trust in Title
A POA CANNOT BE USED WHEN A TRUST IS IN TITLE TO THE PROPERTY OR TO BE IN TITLE (Purchaser) (SELLER OR BORROWER).
UNLESS the Trust has a specific Provision in it giving authority for the use of a POA. The Trust and the POA must be provided upfront for the review and approval of the Title Insurance Underwriting Attorney to obtain permission to use the POA as provided.
POA Requirements for Florida Closings: What Title Companies Need
Whether you’re working with Supreme Title Closings in Brevard County or Supreme Title Solutions in Indian River County, our team will need to review and approve any POA before it can be used at closing. Here’s what we’re looking for:
- The POA must be properly executed (signed) before a notary and two witnesses as required by Florida law
- It should be specific to the transaction, referencing the property address and the type of authority being granted
- It must be submitted for review well in advance of closing
- If the lender is involved, their written approval must accompany the POA before we can proceed
- The title underwriter may also need to review and approve the document before it can be accepted
In some cases, we may need to request an updated or revised POA if the original doesn’t meet the requirements of the underwriter or lender. This is why early communication is so important.
Real Situations Where a POA Comes Up
Here are some common scenarios we see across Brevard and Indian River Counties:
The Out-of-State Seller
A homeowner has already relocated to another state and can’t fly back for closing. With a properly executed POA and seller-side closing, a trusted family member or attorney can sign on their behalf. This is one of the more straightforward situations — as long as the POA is prepared and reviewed in advance.
The Aging Parent
An elderly parent wants to sell a property, but their adult child has durable POA due to declining health. We’ll need to verify the POA is valid and still in effect, and confirm the parent had legal capacity when the document was signed. Depending on the circumstances, the title underwriter may have questions.
The Active-Duty Military Buyer
A service member is purchasing a home in Viera or Vero Beach while deployed overseas. VA loan POA rules apply here, and lender pre-approval is critical. The military spouse or designated agent may be able to close on their behalf but only if the paperwork is airtight.
Work With Your Title Team Early
If there’s a possibility that a Power of Attorney will be part of your closing, the most important thing you can do is bring it up early. Tell your real estate agent, tell your lender, and tell your title company. The earlier we know, the more time we have to make sure everything is in order before closing day.
At Supreme Title Closings and Supreme Title Solutions, our job is to protect your transaction and make sure title transfers cleanly — whether you’re in Brevard County or Indian River County. A POA situation doesn’t have to be a problem. It just needs to be handled correctly.
Have questions about using a Power of Attorney at your upcoming closing? Reach out to our team. We’re here to help you understand what’s needed and make sure nothing slows your closing down.
