Closer's Corner

Wire fraud has become rampant in our industry. According to the Financial Crimes Enforcement Network (FinCEN) there have been 78,000 cases of reported wire fraud involving losses of over $12.5 billion dollars since 2013. 
 

What is a Power of Attorney?

A Power of Attorney (hereinafter “POA”) gives another person the authority to make personal and financial decisions on the principal’s behalf.  A POA can cover all aspects of the principal’s personal and financial affairs, or may be limited to specific situations and activities.  In short, in a POA the principal (think seller or buyer) gives the attorney-in-fact (now referred to as the “agent” as in “agent acting for the principal”) the right to close the real estate deal on the principal’s behalf and with the principal’s full consent.

The need for a guardianship in a real estate transaction can arise in several ways.  If someone in title is a minor child (likely through inheritance) a type of guardianship is needed.  We may also need a guardianship if there is a mental competency issue with a seller.  

DEFINITIONS

A guardianship is a court proceeding to protect the interest of someone who is not legally or mentally capable of conducting his/her own affairs. This is the process where a guardian is appointed for another person to handle the ward’s personal or business affairs.

An endorsement is something that changes the terms of the coverage in the title policy.  It is an attachment to the policy that generally offers more coverage from what is included in the policy.  Each endorsement has its own Procedural Rule and Rate Rule to follow to be able to issue the endorsement.  

To determine which endorsements are applicable, the property type has to be reviewed and determined to be residential or non-residential property.  This can get a little confusing because a legal definition is applied – not necessary current use or zoning.