What Is a Power of Attorney — and How Does a Closing Work When One Is Involved?

A Power of Attorney (POA) is a legal document that lets one person (the "agent" or "attorney-in-fact") act on behalf of another person (the "principal") in specific matters — often financial, medical, or, in real estate, the ability to sign closing documents when the principal can't be there in person.

Why a POA shows up at closings

Closings sometimes happen when the buyer or seller is out of town, deployed, ill, or otherwise unavailable to sign in person. A properly executed POA lets someone they trust sign the closing package on their behalf, so the transaction can move forward on schedule.

What makes a POA valid for a closing

• It must specifically authorize the real estate transaction (a general POA may not be enough — title companies often want language covering the specific property or type of transaction).
• It must be signed and notarized correctly, following the state's requirements.
• Many title companies require the POA to be recorded with the county, and some require it to be reviewed and pre-approved by the title company or lender before closing day.
• It typically needs to be dated close to the transaction — an old or stale POA can raise red flags for underwriters.

How the signing works when a POA is present

1. The notary verifies the identity of the agent (the person physically signing), not the principal, since the principal isn't present.
2. The agent signs the principal's name, followed by their own name and the notation "as Attorney-in-Fact" (or similar, per the document's instructions).
3. The notary confirms the POA document itself is valid, unexpired, and specifically grants the authority being used, and follows the closing package's instructions on where and how the agent should sign each page.
4. Some lenders require the original recorded POA present at signing, not just a copy — this is worth confirming with the title company in advance so there's no delay at the table.

A signing involving a POA has a few more moving pieces than a standard closing, which is exactly why it helps to loop your notary in early — before closing day, not the morning of.

I am not an attorney licensed to practice law in Texas and may not give legal advice or accept fees for legal advice. Royal Seal Notary provides notarization services only.