When a settlement agent is faced with closing a transaction where a principal is represented by an attorney–in–fact, they must take the following precautions to avoid potential claims against the Company:

• Ensure the power of attorney is executed in accordance with the Company's document execution guidelines.
• Send the executed power of attorney to the title officer for review prior to closing.
• If a loan is involved, notify the lender a power of attorney will be used and obtain their approval of the form.
• Make contact with the principal to verify the power of attorney is valid, has not been revoked, and the principal is aware of the overall transaction.
• Never accept disbursement instructions from the attorney–in–fact diverting the proceeds from the principal.
• Follow state specific laws regarding how the attorney–in–fact signs on behalf of the principal. If a state law is nonexistent, the attorney–in–fact should sign the principal's name by their name, as attorney–in–fact. Example: Lisa A. Tyler by Diana Hoffman, her attorney–in–fact
• Do not allow the attorney–in–fact to execute an occupancy affidavit.
• Do not allow the attorney–in–fact to execute forms to be sent to the Internal Revenue Service (IRS) unless an IRS Form 2848 has been signed by the principal appointing the attorney–in–fact to act on their behalf.