Posted by Lisa/Wi on 2/19/05 6:16am
Msg #21335

Opinion on POA Situation

This situation involves my boss, the buyer of one of our listings(another realtors customer), and me. (I am not a Realtor) The buyer needs a POA to get the loan papers signed, and I offered to do it. My boss said "I dont want the liability" If I am an independent contractor as a notary with my own E&O, what liability would she have in this situation? She didnt want to explain to me why exactly I couldnt do this. Any opinions would be wonderful, especially from Realtors.

Reply by Anonymous on 2/19/05 9:16am
Msg #21338

I'm afraid this won't help directly but in CA Notaries personally own their commission, notary seal and bond regardless of who paid for them. Notaries who are employees may still notarize documents for the public outside of their employment hours. In fact in CA if someone is an independent notary must notarize a document for anyone who properly requests their services, is able to present proper ID and is willing to pay.
Your state may be different but I don't see how your boss could be held liable.
Just my opinion and I'm sure you will get an answer from someone who knows your state law.

Reply by Dave_CA on 2/19/05 9:20am
Msg #21341

I did not intend my previous post to be Anonymous... My fingers must have gotten ahead of my morning coffee curve. :-)

Reply by Bobbi in CT on 2/19/05 9:26am
Msg #21343

Deep Pockets theory ...

If the Power of Attorney is not adequate when reviewed by the lender's attorney, seller's attorney, or "rejected" by any of the approval parties along the way the Buyer could come back and sue YOU for preparing an inadequate PoA and the financial loss suffered .... and bring in your boss as another way to collect money ... the six steps to Kevin Bacon theory. Also, if the deal goes south the Buyer could decide to bad mouth your real estate agency - not "the good realtor who had nothing to do with the PoA".

My day job law firm has SPECIFIC language for PoAs for this type of situation ... not off the shelf, fill-in the blank forms - often drafted with language provided by the lender for that SPECIFIC mortgage loan and real estate transation and NOTHING else. PoAs are POWERFUL tools. I have seen spouse-to-spouse PoAs that allow ANYTHING ... and the spouse has done lot's of anything the absent spouse had not intended the PoA to be used for.

If the PoA is already prepared by another party and you are simply acting with your Notary PUBLIC hat and NOT physcially in your boss's real estate office at the time of notarization, I think the arugment can be made it is all you liability.

For me, for a $5 CT notarization going specifically against my boss' request not to do it, I would let someone else do it. Not worth $5 to jeapordize my working relationship with my boss.