May 1, 2025
This article is a product of the Virginia State Bar Real Property Section.
Simply put, a power of attorney (POA) is a legal document that authorizes a person or persons (the agent or attorney-in-fact) to act on behalf of another person or entity (the principal). Powers of attorney may be general (authorizing the agent to do a wide variety of acts) or specific (limiting the authority of the agent to a specific act or acts).
Although a general POA confers broad authority on the agent, it is not unlimited. Under Virginia law, an attorney-in-fact cannot, for example, change the principal’s estate-planning trust, delegate the authority of the agent to another person, or make a gift, unless the instrument specifically allows that power. A POA is effective when it is executed and notarized, although it may provide that it takes effect on a future date or upon a future event (“This power of attorney shall only become effective if I am out of the country for a period in excess of thirty consecutive days,” e.g.).
Under Virginia law, a POA is durable unless it specifically states that it terminates upon the disability of the principal. Powers of attorney also terminate upon the death of the principal or when the principal revokes the authority of the agent. Similarly, the death or disability of the agent terminates the POA unless a successor agent is named in the instrument.
General POAs are unlimited in duration (unless there is a provision to the contrary in the document) and may be used for any purpose therein stated at any time, until terminated.
Specific powers of attorney may be thought of as single-use grants of authority – they are common in real estate transactions. The instrument should identify the property for which the agent is authorized to act and the extent of the authority that the agent has over it. It will usually direct the agent to take whatever steps are necessary to complete a transaction involving real estate.
If a general or specific POA authorizes the agent to execute loan documents, the lender will need to approve the form and content, and the power of attorney should be recorded.
There are too many nuances to powers of attorney to address in this article.1 Because of this, the provisions should be discussed with an attorney who can offer advice on the scope of delegating authority and any possible consequences thereof.2
Endnotes:
1 Military powers of attorney (those executed by members of the armed services) are exempt from state regulations as to form and recordation.
2 Health care powers of attorney are beyond the scope of this article and should be discussed with a physician and a lawyer.