Power of Attorney for Real Estate Closing in Pennsylvania

You have a property closing scheduled in Pennsylvania and you cannot be there to sign. Maybe you are deployed overseas, recovering from surgery, or simply living in another state. A power of attorney can authorize someone else to sign settlement documents on your behalf — but Pennsylvania imposes specific requirements that general POA forms often miss.

A rejected POA at the closing table can delay or kill the transaction entirely. Here is what you need to get right.

The POA Must Explicitly Grant Real Estate Authority

A general power of attorney that says "manage my financial affairs" is not enough for a Pennsylvania property closing. The document must specifically grant the agent authority to buy, sell, mortgage, or otherwise convey real property.

Title companies and settlement agents will review the POA before the closing date and will reject any document that does not contain explicit real estate powers. If the transaction involves refinancing, the POA must also specifically authorize the agent to execute mortgage documents.

Record the POA With the County Recorder of Deeds

Under Pennsylvania law, any POA used for real estate transactions must be recorded in the Office of the Recorder of Deeds in the county where the property is located. This is not optional — an unrecorded POA may be valid between the parties but is not effective against third parties in the chain of title.

Recording fees vary by county. Some examples:

• Lawrence County: $18.50 base fee (up to 4 pages), $2.00 per additional page, plus $20.00 parcel ID certification
• York County: $18.50 base fee (up to 4 pages), $2.00 per additional page
• Philadelphia County: $96.50
• Westmoreland County: $41.00

Call the Recorder of Deeds office in the county where the property sits to confirm current fees before the closing.

Get Title Company Pre-Approval

Do not wait until the day of settlement to present your POA. Title companies require advance review — typically 5 to 10 business days before closing. They will verify:

• The POA is notarized and witnessed per Act 95 requirements (two witnesses plus a notary)
• The document explicitly grants real estate authority for the specific transaction
• The POA is durable (effective through the principal's incapacity) or immediately effective
• The agent's identity matches the person who will attend settlement

Springing POAs — those that only activate upon the principal's incapacity — create problems at real estate closings because the title company may require a physician's certification of incapacity before accepting the document. An immediately effective durable POA avoids this delay entirely.

What the Agent Signs at Settlement

The agent signs all documents as: "Jane Smith, as Agent under Power of Attorney for John Smith, Principal." The agent brings the original POA (not a copy), valid government-issued photo ID, and the agent's acknowledgment page required by 20 Pa. C.S. § 5601(d).

The settlement agent will also require a certified copy of the POA for recording. Some title companies request the POA be recorded before the closing date rather than at the time of settlement.

Pennsylvania Inheritance Tax Implications

If the real estate transaction involves transferring property between family members — such as a parent deeding a home to an adult child through a POA — Pennsylvania inheritance tax may apply. Transfers to children are taxed at 4.5%, siblings at 12%, and other non-spouse heirs at 15%. The one-year lookback rule means transfers made within 12 months of death are pulled back into the taxable estate.

Strategic use of a POA for real estate transfers should account for these tax consequences, particularly if the principal is elderly or in declining health.

Get It Right the First Time

A POA rejection at closing costs everyone time and money — and may not be fixable before the settlement deadline expires. The Pennsylvania Power of Attorney Kit includes explicit real estate authority language, county recording instructions, and the exact execution format that title companies across Pennsylvania accept.

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