What Is a Durable Power of Attorney in Real Estate?

A durable power of attorney (POA) allows someone to legally manage your real estate and financial affairs even if you become incapacitated. Unlike a limited POA, which covers one specific transaction, a durable POA remains active during long-term medical or cognitive issues.

Durable Power of Attorney: Simple Definition

A durable power of attorney is a legal document that gives a trusted person (called the agent) the authority to handle your real estate, financial, or legal matters if you become medically unable to do so. A durable POA continues to be valid after incapacity, unlike a standard or non-durable POA.

Why People Use a Durable POA for Real Estate

A durable POA helps ensure continuity when someone cannot manage property-related decisions. It may be used to:

  • Pay the mortgage, taxes, or insurance on real estate
  • Manage rental properties and handle leases
  • Sign real estate documents during medical emergencies
  • Sell or refinance property if needed
  • Avoid court-appointed guardianship during incapacity

This makes durable POAs an important part of estate planning and long-term property management.

How a Durable Power of Attorney Works in Real Estate

A durable POA becomes effective either immediately or upon incapacity, depending on how the document is written. It typically authorizes the agent to:

  • Buy, sell, or refinance real estate
  • Sign deeds, disclosures, and closing documents
  • Manage rental income and property expenses
  • Communicate with lenders, escrow, and title companies
  • Access financial accounts related to property ownership

Because durable POAs remain valid even after incapacity, they provide more stability than a standard real estate POA.

Durable POA vs. Limited POA

Durable and limited POAs serve different purposes in real estate:

  • Durable POA: Long-term authority that remains valid after incapacity.
  • Limited POA: Short-term permission for a specific transaction.

For example, a limited POA may allow someone to sign at a single closing, while a durable POA may authorize broader property and financial management.

Durable POA and Estate Planning

A durable POA is often used alongside a living trust to ensure complete coverage during incapacity and after death.

While a living trust controls assets that are titled in the trust, a durable POA covers assets or decisions that fall outside the trust until they can be transferred or managed.

If no POA exists and someone becomes incapacitated, the family may need court involvement to appoint a guardian.

Need Help Managing Property During a Transition?

A durable POA ensures someone you trust can handle real estate decisions when you cannot.

View Flat Fee MLS Plans →