Escrow & TitleIntermediateAlaska Exam

In Alaska, a 'power of attorney' may be used in a real estate closing to allow:

AAn attorney to change the contract terms
BA designated person to sign closing documents on behalf of an absent partyCorrect
CThe title company to accept alternative forms of payment, as a general rule
DThe broker to receive the commission directly

Why A designated person to sign closing documents on behalf of an absent party Is Correct

Answer B: A designated person to sign closing documents on behalf of an absent party

A power of attorney (POA) authorizes a designated person (the attorney-in-fact) to sign legal documents — including real estate closing documents — on behalf of the principal who is unable to attend the closing. For real estate transactions, a durable POA is typically required and must be properly executed and acknowledged.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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