Power of Attorney and Real Estate: What It Does and Doesn't Let You Do

June 11, 2026 · Seniors & Estates · by Caleb Worm

Power of attorney (POA) is one of the most common tools families use when helping a senior parent sell a home. But there is a lot of confusion about what a POA actually allows, especially when it comes to real estate transactions in Indiana and Michigan.

What a power of attorney does

A power of attorney is a legal document that allows one person (the principal) to authorize another person (the agent or attorney-in-fact) to act on their behalf. For real estate purposes, a POA can allow the agent to:

Sign listing agreements with a real estate agent
Sign purchase agreements and accept offers
Sign closing documents including deeds
Access bank accounts tied to the property (for paying taxes, utilities, or mortgages)
Hire professionals (contractors, cleanout companies, auctioneers) to prepare the property for sale

What a power of attorney does NOT do

A POA is not a blank check. Key limitations:

The POA must specifically grant real estate authority. A general POA may not be sufficient. Indiana and Michigan title companies typically require a POA that explicitly mentions real estate transactions and the specific property address.
The POA must be durable. A standard POA terminates if the principal becomes incapacitated. A durable POA remains in effect. If the parent has lost cognitive capacity and the POA is not durable, it may no longer be valid.
The POA does not override the principal's wishes. If the parent is still competent, they can make their own decisions. The POA is a tool for when they cannot or do not want to act.
The POA terminates at death. Once the principal passes away, the POA is no longer valid. At that point, the estate process (probate or trust administration) takes over. The agent under a POA cannot sell property after the principal's death.

POA vs. executor vs. trustee

These are three different roles with different authority:

Power of attorney agent: Acts while the principal is alive but unable or unwilling to act. Authority ends at death.
Executor (named in a will): Acts after death, managing the estate through probate. Authority comes from the court.
Successor trustee (named in a trust): Acts after death or incapacity, managing trust assets. Authority comes from the trust document, not the court.

If the parent is still alive but unable to manage the sale, a POA is the right tool. If the parent has passed away, the executor or trustee takes over.

Common issues with POAs and real estate in Indiana and Michigan

The POA is too old. Title companies and courts prefer recent POAs. A POA executed 15 years ago may face challenges. If possible, have the parent execute a new one while they are still competent.

The POA does not mention real estate. Many generic POA forms do not specifically grant real estate authority. Title companies in Indiana and Michigan may refuse to insure a transaction without specific real estate language.

The POA is not recorded. For real estate transactions, the POA often needs to be recorded with the county recorder (Indiana) or register of deeds (Michigan) before the sale can close.

Multiple children, one POA. If one sibling has POA but others are involved in decisions, clarity matters. The POA agent has legal authority, but family dynamics can complicate things. Communication and transparency are essential.

What to do if there is no POA and the parent cannot sign

If a parent has lost capacity and there is no POA, the family may need to pursue guardianship or conservatorship through the court. This is a more involved process than using a POA, but it provides legal authority to manage the parent's affairs, including selling real estate.

An estate and probate attorney can advise on whether guardianship is necessary or whether alternatives exist.

How I work with POA agents

When a family member has POA and needs to sell a parent's home, the process is straightforward:

I review the POA to confirm it grants real estate authority (or the family's attorney confirms this)
The agent signs the listing or auction agreement on behalf of the parent
We proceed with the sale: cleanout, prep, marketing, showings or auction
The agent signs closing documents
Proceeds go to the parent (or their account as directed by the POA)

I coordinate the full process so the agent does not have to manage multiple providers. One point of contact for the property, the contents, and the coordination.

For more on the full range of senior and estate real estate services, visit Real Estate Agent for Seniors.

Call or text 574-240-WORM. This article covers POA and real estate generally. For specific legal advice about your family's situation, consult an estate attorney.