Legal Question in Wills and Trusts in Maryland

Re: Power of Attorney

Banks, financial institutions, brokerage firms, real estate companies, intermediaries, titling agencies, insurance companies, and a host of other entities should accept a properly drafted power of attorney (POA). The question remains as to the adequacy of your POA. There are a variety of POA's and often you need one that is specific to the transaction or authority that is being granted.

All this aside, the contract with the entity may limit its acceptance of a POA. Under a valid contract, such a practice is permissible. The reasoning is that the contract is between the entity and the first party and that a grant of the first party's authority must comply with the entity's limitations in order to protect the first party and the entity. Nonetheless, such contractual limitations are not an absolute bar to a properly effected POA.

Your situation, the contractual limitations, sufficiency of your POA, the type of transaction, and other matters apply to your situation. A POA can be asserted over the limitations placed by the contract; however, these limitations should have been considered upon effecting the POA.

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