Question 1

Can I sell my parent's house using a Power of Attorney in New Jersey?

Accepted Answer

Yes, but only if the Power of Attorney document specifically grants authority to sell, convey, or transfer real estate. A general POA that only mentions 'financial affairs' may not be sufficient. The POA must also be properly executed, notarized, and recorded with the county clerk before the agent can sign the deed. If your parent still has capacity, an attorney can review the existing POA or prepare a new one that includes the required real estate language.

Question 2

Does a Power of Attorney need to be recorded to sell property in NJ?

Accepted Answer

Yes. If the agent will be signing the deed on behalf of the principal, the original executed POA must be recorded with the county clerk in the county where the property is located. A copy is not sufficient. Title companies will not allow a deed to be delivered or recorded unless the POA is already on file with the county. It is best to complete this step before listing the property to avoid delays at closing.

Question 3

What happens if the principal becomes incapacitated after signing the POA?

Accepted Answer

If the POA includes specific 'durable' language, it remains valid even after the principal loses capacity. However, if the POA does not contain this language, the agent's authority terminates automatically when the principal becomes incapacitated. This is why New Jersey attorneys recommend using a durable Power of Attorney for real estate transactions, especially when the principal is elderly or facing a cognitive diagnosis.

Question 4

Can a family member challenge a Power of Attorney real estate sale?

Accepted Answer

Yes. Family members can challenge a POA-based sale if they believe the document was signed under undue influence, the principal lacked capacity at the time of signing, or the agent is acting outside the scope of their authority. Sales involving POAs executed shortly before incapacity or death face particular scrutiny. If family members object to the sale, early legal intervention can help clarify authority and protect the agent from liability.

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Selling a Home for Someone Else? Understanding POA Real Estate Sales in NJ