Agency

What is a 'power of attorney' (POA) in real estate and how is it used in Hawaii transactions?

AA. The authority of a licensed real estate agent to represent clients
BB. A legal document authorizing one person (attorney-in-fact) to act on another's behalf in real estate matters; used when a principal cannot be present for signing✓ Correct
CC. A document giving the broker authority to set the selling price independently
DD. A state document required for all commercial real estate transactions in Hawaii

Explanation

A power of attorney authorizes an 'attorney-in-fact' to sign documents on behalf of the principal. In Hawaii real estate, POAs are used when buyers or sellers cannot be present at closing (common given Hawaii's transient population and mainland buyers). Lenders and escrow companies have specific POA requirements; military POAs and durable POAs may have different acceptance criteria.

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