Escrow & Title

The purpose of a power of attorney in real estate closing is to:

AAllow the lender to sign documents on behalf of the borrower without consent
BAuthorize a designated person (attorney-in-fact) to sign closing documents on behalf of a party who cannot attend✓ Correct
CGrant the title company authority to disburse all funds
DAuthorize AREC to oversee the closing process

Explanation

A power of attorney is a legal document authorizing one person (the attorney-in-fact) to sign documents and take legal actions on behalf of another. In real estate, it is used when a principal cannot attend closing to execute the necessary documents.

Related Arkansas Escrow & Title Questions

Practice More Arkansas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arkansas Quiz →