What is a limited power of attorney (LPOA)?

A power of attorney (POA) is the designation of another individual to manage, acquire, mortgage, refinance, convey, or sell property on behalf of the principal. Known as an attorney-in-fact, this is usually someone with a personal, familial, or fiduciary relationship with the principal. During the COVID-19 crisis, the GSEs provided guidance allowing for individuals employed by a title insurer or title agent to sign loan documents on the borrower’s behalf using a properly executed limited power of attorney, or LPOA (See LPOA: The Remote Closing Tool Few Are Using). This legal document explicitly defines the involved parties, the legal description of the property in question, the names of the buyer(s) and seller(s), the approximate sales price, the specific powers given to the attorney-in-fact, and an expiration date for the attorney-in-fact’s authority.