Insight

Overcoming Obstacles with the General Power of Attorney

Overcoming Obstacles with the General Power of Attorney

Adam Leitman Bailey

Adam Leitman Bailey

January 5, 2022 12:25 PM

Closing by Power of Attorney has always been a common practice in real estate transactions, especially now during the pandemic. Parties who are unable to attend the closing personally could delegate such power to an agent to execute documents on their behalf at the closing table.

While it may be a seemingly straightforward delegation, New York has a unique set of guidelines and requirements. In addition to the modification made in June 2021 of the New York Power of Attorney Short Form, for real estate in particular, the property being transferred will also need to be mentioned in the Power of Attorney itself. For buyers who are purchasing with a mortgage, there are also bank-specific requirements, such as the lender’s name and loan number. The form must then be physically signed in front of two witnesses and a notary, and then delivered to the closing for recording.

Adam Leitman Bailey, P.C.’s Banking Department normally receives transaction specific Power of Attorneys for review and approval. As mentioned above, the document will list the property address, loan number and lender name for the particular transaction in closing. However, we do occasionally receive General Power of Attorneys for approval from a Principal who may not be available to sign due to a disability and has granted this right to an agent for multiple situations, not just the particular transaction we are closing.

The question arises when an individual is not able to physically sign due to a disability and their designated agent with general power of attorney is also not able to attend. In this situation, New York EPTL §5-1501B address how one should proceed. In summary, such agent will be able to designate another agent on the Principal’s behalf to sign all closing documents so long as such designation is done in the Principal’s presence and the Principal is able to verbally consent to the designation.

Specificities and requirements are often added for additional security and precaution, especially for major purchases such as real estate. However, such requirements may also create unintended layers of complication for people under certain circumstances. Here at Adam Leitman Bailey, P.C. we are dedicated to working with both Lenders and Borrowers to overcome such challenges and ensure closings proceed as smoothly as possible.

Rosemary Liuzzo Mohamed and Amy Chen of Adam Leitman Bailey, P.C.’s Banking Department maneuver these obstacles and regularly achieve ideal results for their clients.

Original Article

Related Articles

Too Good to Fail


by Best Lawyers

Sandro Abegglen discusses new regulations after financial crises, corruption, and more.

An Interview With Niederer Kraft Frey

Return the Favor When Bidding


by Denys Myrgorodskiy

Denys Myrgorodskiy, the managing partner of Dynasty Law Firm, looks at the process of withdrawing insolvent banks from the market in Ukraine and its potential consequences.

New Bank Fraud Laws in Ukraine

The Great Reckoning


by John Ettorre

Eight years after the financial crisis, aftereffects continue to ripple through the financial sector.

The Great Reckoning

Fluctuations within Fraud, White-Collar Sentencing


by Evelina Burnett

White-Collar Sentencing

Basel III and New Challenges for Lending to Commercial Developments


by Mark K. Googins and Douglas F. Britton

Basel III

Trending Articles

Whistleblower Legislation Opens the Doors for More International Claims


by Justin Smulison

An Anti-Money Laundering Act, part of a recently passed Omnibus Budget in the U.S. Senate, is expanding protection for whistleblowers both domestically and internationally.

Shadow figure in spotlight against red and blue brick wall

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

Best Lawyers Voting Is Now Open


by Best Lawyers

Voting has begun in several countries across the globe, including the United States, the United Kingdom and Europe. Below we offer dates, details and answers to voting-related questions to assist with the voting process.

Hands holding smartphone with five stars above phone

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

Rising Transfer Taxes


by Angus C. Beverly

Transfer taxes in California are becoming a statewide trend with potentially national implications. Here is a breakdown of the effects in several cities.

State of California in orange with city in backdrop

Could Reign Supreme End with the Queen?


by Sara Collin

Canada is revisiting the notion of abolishing the monarchy after Queen Elizabeth II’s passing, but many Canadians and lawmakers are questioning if Canada could, should and would follow through.

Teacup on saucer over image of Queen's eye

Announcing The Best Lawyers in Australia™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Australia.

The Best Lawyers in Australia™ 2023

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

Announcing the 2023 The Best Lawyers in Canada Honorees


by Best Lawyers

The Best Lawyers in Canada™ is entering its 17th edition for 2023. We highlight the elite lawyers awarded this year.

Red map of Canada with white lines and dots

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

The Upcycle Conundrum


by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

Caffeine Overload and DUI Tests


by Daniel Taylor

While it might come as a surprise, the over-consumption of caffeine could trigger a false positive on a breathalyzer test.

Can Caffeine Cause You to Fail DUI Test?

Wage and Overtime Laws for Truck Drivers


by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

IN PARTNERSHIP

2022: Another Banner Year


by John Fields

Block O’Toole & Murphy continues to secure some of New York’s highest results for personal injury matters.

Three men in business suits standing in office