Power of Attorney for a purchase without an address

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Power of Attorney for a purchase without an address

Alan Sue
Yokohama Shi, Kanagawa-ken · Member since 2016 · 38 posts · 14 votes

Some background, I'm an American living in Japan, and trying to do real estate in the US from abroad. That makes for all sorts of fun beyond just the time difference. It also means each notarized signature costs about 100USD, so a typical RE closing just for notarization alone can be about 700USD. Before I ask my question, I know that whatever answers come do not count as legal advice, and I should ask a lawyer, lender, title company, before anything is finalized.

I have use Limited/Special Power of Attorney before for some real estate purchases, and I am planning to sell some properties, then 1031 them into others. 

My question is, is it possible to have a PoA that does not have a specified address on it, but is still limited and does not give too much authority to the agent? I would love to have both PoA for selling and purchasing notarized at the same time, but due it to being a 1031 transaction I would not know the address necessarily. 

Thank you for any advice!

Alan

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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
7y

@Alan Sue, strictly from the 1031 perspective we have no problem at all with a limited or general POA. This kind of thing isn't uncommon at all. If the escrow company is willing to accept it for transfer of title then we will for 1031 documentation.

You may want to simply select one title company and specify that they will be the escrow officer for all sales. If you're in a location where the seller selects escrow then that's easy. If not then it simply becomes a matter of contract negotiation. Then you can direct multiple closings with the one POA set up with that title co.

As an alternative to that you can set the parameters for a POA to include multiple addresses. It's up to the attorney crafting it to be as specific or general as you want.

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  • Storm S.
    Real Estate Agent · Santa Barbara, CA · Member since 2016 · 518 posts · 283 votes
    7y

    My guess would be probably, Just make sure you really trust who you give that power to.

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  • Anthony Dooley
    Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    7y

    POAs are state specific. Some states are really weird, so it depends on the state. Another way to do it is to have an LLC partnership and in the articles, name the other person, who lives in the States, as the managing partner. The managing partner would be able to sign everything at closings. Of course this is someone that you completely trust.

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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    7y

    @Alan Sue, strictly from the 1031 perspective we have no problem at all with a limited or general POA. This kind of thing isn't uncommon at all. If the escrow company is willing to accept it for transfer of title then we will for 1031 documentation.

    You may want to simply select one title company and specify that they will be the escrow officer for all sales. If you're in a location where the seller selects escrow then that's easy. If not then it simply becomes a matter of contract negotiation. Then you can direct multiple closings with the one POA set up with that title co.

    As an alternative to that you can set the parameters for a POA to include multiple addresses. It's up to the attorney crafting it to be as specific or general as you want.

    The 1031 Investor5137 Reviews
    WebsiteView Page
    1Reply
  • Bruce Crawford
    Rental Property Investor · Minato-ku, Tokyo Prefecture · Member since 2017 · 42 posts · 17 votes
    7y

    @Alan Sue - I used to use a POA in NY - but as Anthony stated it was state specific. I only used him for purchasing properties (not selling). I was living in MA at the time but now in Tokyo.

    For your notary fees, they seem really high as the Embassy in Akasaka is $50 but I just found a law firm that will do them for JPY5,000 per signature in Azabudai (Azabujuban area). PM me if you want their website (I have not used them yet but hope to on the property I am closing currently in AL)

    Interesting question you have raised and will be following this thread!

    Bruce

    1Reply
  • Alan Sue
    OP
    Yokohama Shi, Kanagawa-ken · Member since 2016 · 38 posts · 14 votes
    7y

    Thanks for all the replies! I appreciate it. I'll look into the states and different wording/options that there will be.

    I did give some thought to doing it through the LLC route, but will probably be getting 30yr fixed loans which I don't think can be done through the LLC?

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    7y

    @Alan Sue If there are lenders involved, there is no way you are going to get away with a single blanket POA for buying and selling real estate in multiple states. Sorry.

    Some lenders will require property address, contract date, purchase price, loan #, max loan amount to be stated in the POA. Others simply won't allow a POA for purchases. Can you blame them?

    Best to just figure out the requirements on a case-by-case basis and satisfy them.

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