June 18th, 2013 12:15 PM by Juan Luis Rodriguez-Kohly
Notice: The information provided is for informational purposes only. Please be advised that nothing contained is this post should be construed to be legal advice. Juan Luis Rodriguez-Kohly, Loan Originator, NMLS257898 IS NOT an attorney and is not qualified to give legal advice. Please consult a competent attorney:
A Durable Power of Attorney in Florida:
In a Reverse Mortgage Transaction it is a legal document through which the Principal (SeniorBorrower) authorized an Agent (the “POA” or “Attorney-in-Fact”) to act on behalf of the Principal and executed BEFORE the incapacitation occurs. A durable POA remains valid even though the Principal becomes incapacitated. Only a Durable POA can be used in a Reverse Mortgage transaction. Ideally it should be done by an attorney, DO NOT use a “store-bought” template.
Duties of the “Agent” or “Attorney-in-Fact” or “POA”:
Those Duties are established by Florida Law. It creates a “Fiduciary Duty” to act for the Principal. The “Agent” MUST act in the utmost good faith and undivided loyalty towards the Principal in accordance with highest principles of morality, fidelity and fair dealing. In general the “Agent” MUST understand that the Reverse Mortgage Loan is done to benefit the Principal and the Loan proceeds are only, exclusively to be used for that purpose. The loan proceeds CAN NOT be used to the “Agent’s” or other parties’ benefit.
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