North Dakota Real Estate Practice Exam

What is required for a person to act under a power of attorney in real estate transactions?

1. The power of attorney must be revoked at the time of sale

2. The transaction must be recurrent and frequent

3. The power of attorney must be duly executed and not recurrent

4. The power of attorney must be filed with the commission

The correct answer is: The power of attorney must be duly executed and not recurrent

To act under a power of attorney in real estate transactions, it is essential that the power of attorney is duly executed and does not need to be recurrent. Duly executed means that the document has been properly completed and signed in accordance with the legal requirements, which typically includes witnessing and notarization, depending on state laws. This execution validates the authority granted to the attorney-in-fact (the person designated to act on behalf of the principal) to handle the specific real estate transaction. Furthermore, the non-recurrent nature indicates that the authority can be given for a specific transaction without the need for it to be on an ongoing basis. Real estate transactions often involve singular events, such as the sale or purchase of property, where a one-time power of attorney is appropriate and sufficient. This allows for flexibility and the ability to act swiftly in real estate dealings without needing ongoing oversight or repeated authorizations. In contrast, options that suggest revocation at the time of sale, a requirement for frequent transactions, or a need to file the power of attorney with a commission do not align with the standard legal protocols governing real estate transactions and the use of powers of attorney. Therefore, the emphasis on a duly executed and tailored document encapsulates the necessary legal framework for such an