Power of Attorney
Create a PA-compliant Power of Attorney for commercial real estate transactions. Manage LOIs, Triple Net leases, and CAM charge negotiations with legal authority.
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In the fast-paced Pennsylvania commercial market, a Power of Attorney (POA) is essential for brokers managing portfolios across different counties. Whether you are executing a Letter 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 property legal description]
IN WITNESS WHEREOF, I have executed this Power of Attorney on the date first written above.
Principal
Name: Principal
Date: ___________________
In the fast-paced Pennsylvania commercial market, a Power of Attorney (POA) is essential for brokers managing portfolios across different counties. Whether you are executing a Letter of Intent (LOI), negotiating Triple Net (NNN) lease terms, or addressing Common Area Maintenance (CAM) disputes, this document provides the legal empowerment needed for an agent to act on your behalf. Our template ensures compliance with Pennsylvania's specific real estate landscape, including 33 Pa.C.S. § 6 (Statute of Frauds) requirements for leases exceeding three years and UCC 13 Pa.C.S. § 2201 standards, mitigating risks of misrepresentation claims and commission disputes.
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
In Pennsylvania, commission schedules must be clearly defined to avoid disputes. Under the Wage Payment and Collection Law (43 P.S. § 260.1 et seq.), earned commissions are protected, but the POA must explicitly grant the agent authority to sign agency agreements or settlement statements (RESPA) to ensure the trigger points for these payments are legally binding.
Yes. To be enforceable and recordable for real estate transactions in Pennsylvania, the document must be signed by the principal, witnessed, and notarized. This is critical for transactions involving Cap Rate adjustments or Tenant Improvement (TI) allowances where third-party lenders require verified authority under TILA/RESPA guidelines.
Yes, provided the 'Powers Granted' clause specifically includes the authority to execute lease agreements. Because Pennsylvania’s Statute of Frauds (33 Pa.C.S. § 6) requires leases longer than three years to be in writing, a POA is the standard way to ensure your agent can legally bind the principal to those long-term liabilities and CAM obligations.
No. Pennsylvania is a separate property state. This means the POA specifically manages the principal's identified commercial assets and interests without the automatic joinder of a spouse, which simplifies the execution of commercial deeds and UCC-1 filings for equipment or fixtures.
State laws affect what must be in this document. Pick your jurisdiction.
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