Power of Attorney
Secure your commercial brokerage deals in California. Custom POA for LOIs, NNN lease signings, and CAM negotiations under CA Civil Code & AB 5 compliance.
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In the high-stakes world of California commercial real estate, timing is everything. Whether you are managing Triple Net (NNN) leases, negotiating CAM charges, or executing Letters of Intent (LOI)... Read more
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Legal Document
KNOW ALL PERSONS BY THESE PRESENTS, that I, [principal_name] (the "Principal"), a resident of the State of [state_law], being of sound mind and under no duress, do hereby make, constitute, and appoint [agent_name] (the "Agent" or "Attorney-in-Fact") as my true and lawful Agent, to act for me and in my name, place, and stead, with respect to the powers and authority described herein.
WHEREAS, the Principal desires to appoint the Agent to act on the Principal's behalf with respect to certain matters, as more particularly described herein; and
WHEREAS, the Agent is willing to accept such appointment and to act in accordance with the terms and conditions set forth in this instrument; and
WHEREAS, the Principal intends this Power of Attorney to be governed by the laws of the State of [state_law] and all applicable provisions of the Uniform Power of Attorney Act as adopted therein.
NOW, THEREFORE, the Principal hereby declares and grants this Power of Attorney as follows:
The Principal hereby appoints [agent_name] as the Principal's Attorney-in-Fact (the "Agent"). The Agent shall have the authority to act on behalf of the Principal in all matters described in this instrument, subject to any limitations expressly set forth herein. The Agent shall exercise such powers in a fiduciary capacity, in good faith, and in the best interests of the Principal at all times. The Agent shall act with the care, competence, and diligence ordinarily exercised by agents in similar circumstances and shall not engage in any self-dealing or conflict of interest unless expressly authorized herein.
The authority granted to the Agent under this Power of Attorney is designated as follows and shall be construed in accordance with the applicable type of authority selected below.
Subject to the type of authority designated above, the Principal hereby grants the Agent the following specific powers and authority: [powers_granted] The Agent shall exercise the foregoing powers prudently and in the Principal's best interests. In the event of any ambiguity regarding the scope of the powers granted herein, such ambiguity shall be resolved in favor of granting the Agent the authority reasonably necessary to carry out the Principal's stated intentions. The Agent may employ and compensate, at the Principal's expense, such professionals, advisors, accountants, and attorneys as the Agent deems reasonably necessary to assist in the performance of the Agent's duties hereunder.
This Power of Attorney shall become effective as of [effective_date], subject to any springing provisions described in Section 2 above.
Any third party who receives a copy of this Power of Attorney, whether original, photocopy, or electronically transmitted, may rely upon the authority granted herein and may act in accordance with the Agent's instructions without liability to the Principal or the Principal's estate, heirs, or assigns. No third party shall be required to inquire into the validity or continuing effectiveness of this instrument, nor shall any third party be liable for acting in good faith reliance upon this Power of Attorney. A third party who refuses to honor this Power of Attorney may be liable for attorneys' fees and damages as provided by applicable law. The Principal hereby agrees to indemnify and hold harmless any third party who acts in good faith reliance upon the representations and authority of the Agent under this instrument.
The Principal reserves the right to revoke, amend, or modify this Power of Attorney at any time, provided that the Principal has the legal capacity to do so. Any revocation, amendment, or modification shall be in writing and shall be effective upon delivery of written notice to the Agent and to any third party who has previously relied upon this instrument. Until a third party receives actual written notice of revocation, such third party may continue to rely upon the authority granted herein and shall not be liable for any actions taken in good faith reliance upon this Power of Attorney prior to receiving such notice. Upon revocation, the Agent shall promptly return to the Principal all documents, records, property, and funds in the Agent's possession or control that belong to or relate to the affairs of the Principal.
This Power of Attorney shall be governed by, and construed and enforced in accordance with, the laws of the State of [state_law], including but not limited to the Uniform Power of Attorney Act as adopted by the State of [state_law] and any amendments thereto. The Principal consents to the exclusive jurisdiction of the courts of the State of [state_law] for the resolution of any disputes arising out of or relating to this instrument. If any provision of this Power of Attorney is held to be invalid, illegal, or unenforceable, such provision shall be severed from this instrument and the remaining provisions shall continue in full force and effect.
[specific real estate powers]
IN WITNESS WHEREOF, I have executed this Power of Attorney on the date first written above.
Principal
Name: Principal
Date: ___________________
In the high-stakes world of California commercial real estate, timing is everything. Whether you are managing Triple Net (NNN) leases, negotiating CAM charges, or executing Letters of Intent (LOI) for out-of-state investors, a specialized Power of Attorney ensures your transactions never stall. Our California-specific POA is designed to mitigate misrepresentation claims and commission disputes by defining clear agent authority under Cal. Civ. Code § 1624. By designating a trusted attorney-in-fact, you maintain the momentum of cap rate optimizations and tenant improvement approvals, even when the principal is unavailable, while staying compliant with CCPA data standards and AB 5 worker classification nuances.
Beyond the standard power of attorney sections, this template adds fields specific to Commercial Real Estate Broker:
A power of attorney (POA) is a legal document that enables one person (the principal) to designate another person (the agent or attorney-in-fact) to make decisions and act on their behalf in specified or all matters. The document serves as a legal empowerment that allows the agent to manage affairs such as financial transactions, health care decisions, and legal proceedings, thereby ensuring the principal's affairs can be managed even if they are incapacitated or unavailable to oversee them directly.
Misrepresentation claims
Detailed disclaimers in contracts stating that all representations are believed to be accurate but should be independently verified by clients.
Commission disputes
Clear agency agreements and commission schedules included in contracts outlining the fees and when they are earned.
Lease liability issues
Including precise language in leases regarding responsibilities for maintenance, repairs, and liabilities to avoid disputes.
For this power of attorney to be legally valid:
Common mistakes to avoid:
Real Estate Settlement Procedures Act (RESPA)
Governs real estate transactions including commercial ones, ensuring transparency in settlement services.
Enforced by Consumer Financial Protection Bureau (CFPB)
Truth in Lending Act (TILA)
Regulates the disclosure of credit terms to protect against unfair billing and credit card practices, applicable when financing is involved in commercial real estate.
Enforced by Consumer Financial Protection Bureau (CFPB)
Uniform Commercial Code (UCC)
While not a federal regulation, UCC is widely adopted state-level legislation that governs commercial transactions including real estate deals.
Enforced by Various state governments
Recommended coverage: Errors & Omissions Insurance · General Liability Insurance · Professional Liability Insurance
Yes, provided the 'Powers Granted' clause explicitly includes the authority to execute lease instruments. In California, per Cal. Civ. Code § 1624 (Statute of Frauds), authorizations for real estate contracts must be in writing. This document allows you to specify authority for managing lease liabilities and maintenance responsibilities common in NNN structures.
While the POA grants authority to act, it should be used in conjunction with a clear agency agreement. However, our template includes a 'Powers Granted' section where you can explicitly limit the agent's ability to negotiate or alter commission schedules, providing a secondary layer of protection against unauthorized fee amendments.
Yes. To be enforceable and recordable with California County Recorders, a Power of Attorney must be signed before a Notary Public. This provides the necessary verification to prevent fraud and ensures the document meets the legal capacity requirements of Cal. Civ. Code § 1550.
California’s AB 5 uses the ABC test to classify workers. If you are appointing a sub-agent or contractor to act on your behalf, ensure their role within the POA does not inadvertently create an employer-employee relationship that violates California Labor Code § 2750.3. The POA should clearly define the scope of the specific task-based authority granted.
State laws affect what must be in this document. Pick your jurisdiction.
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