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The original POA papers for MIL were accidentally thrown away by another person. This was not discovered until we were all gathered at closing for the house sale. The closing could not continue. The buyers have there loan rate locked until Thursday. Please advise!

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Faith, thanks for that information. It's been years since I've even heard that term, let alone had any experience with it. I do vaguely recall some instances of it in certain kinds of cases, but that probably would have been back in the mid 60's or 70's. Guess I'm at the point now where I've forgotten more than I remember!

I hope the process works out well for you; it's so unfortunate that the buyers backed out - who knows - in 3 months they might still be looking.
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GardenArtist, it is called a Declaratory Judgement in circuit court.
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Faith, I'm really curious why this would take 3 months. What sort of action are they filing? Is it in a probate or circuit court, or some other court?
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The law company is preparing a duplicate original that must go before a judge that may take 3 months. The buyers said forget it........🙁
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Faith, I apologize - I belatedly reread your comments. When you state that you have copies attesting identity to the original, those probably are conformed copies. That should be enough for the title company. They're being difficult.
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Another thought: the loan rate may have changed given that the Fed has raised the prime rate. The buyers should take their copies of the extension to the purchase agreement as soon as it's accomplished to their lender to see if they can get the rate extended.

If the realtor screws around or doesn't cooperate, I would go above the realtor to the owner of that particular franchise of the real estate company, and/or advise that their failure to cooperate to work out the deal will not only cost them their commission, but might affect their future business....something vague that lets them know that if they don't help to work out the deal, their reputation could be tarnished, but don't actually threaten them with ruining their reputation. You can just infer that you're very disappointed in their lack of desire to find a solution and are sorry you retained them in the first place.

Maggie Marshall is a former realtor. She might have some ideas on how to encourage their cooperation, but I suspect the real problem is with the title company.

I would also suggest to the realtor that they consider another title company for their future business. Companies that don't work to resolve issues shouldn't be automatically given a realtor's business.

If this happened at a commercial level, my position to the title company would be:

This deal needs to close, we need to find a solution, so how can we do it given that the original DPOA is missing? Our client will be very unhappy if the deal doesn't close by xxxx date.
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Faith, I think the title company is being difficult. When I worked in commercial real estate, title companies knew our law firm, our client and would be very cooperative. However, in a residential transaction, that level of cooperation probably doesn't exist, especially if the title company is just a small local one not a branch of a national company.

I've found that branches of national title companies have more sophisticated and knowledgeable staff than smaller, local ones.

I would ask the law firm if it can prepare a duplicate original, something that attests to the fact that the original blue backed one (which by the way is an old tradition that isn't used any more by the estate planning law firms for which I worked a few decades ago), certifying that the duplicate original is in fact an identical copy of the destroyed original. As Mincemeat suggests, an Affidavit attesting to that fact might be appropriate for the attorney who prepared the original POA, or one of his/her partners.

Also ask the attorney if they prepared conformed copies. I've used those when I had to. They're duplicate signed originals, marked "conformed" to identify them from the original which the person who executed the POA keeps.

I would also get the real estate agent on board and explain that if the title company (probably chosen by them) which isn't cooperative can't be found, the agent is going to lose his or her commission. That ought to light a fire under the agent.

Then I would draft an extension to the purchase agreement, or perhaps a rider or addendum, executed by you/your family as seller as well as the purchaser, and the realtor (not just the realtor but his/her company) setting forth the terms of the POA issue, and agreeing that:

(a) not being able to comply with the title company's demands is NOT an event of default under any of the purchase documentation, and that

(b) the time for closing is being extended due to issues arising from the destroyed POA, and

(c) neither seller or purchaser are in default due to inability to comply with the title company's demands, and

(d) seller is working on alternate means to address the destroyed document issue.

Good luck; this could be a deal killer but in my experience competent and experienced title reps would find a way to work this out instead of insisting on the seeing the original blue-backed document.
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It may cost for a new title search, but shop around for a new title company that is willing to work with you, the law firm that drew up the paperwork, and the affidavit.
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GardenArtist, yes we've contacted the law firm and everyone involved as agreed to sign affidavit or whatever needs to be done, but Title company insists on original with the blue cover sheet that doesn't exist anymore......I feel so badly for the couple that came to closing with their check in hand. They want the house and we want to sell it to them, but what else can we do?
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Faith, do any of the copies show the name of the law firm that prepared it, and is one of the witness and/or notary an attorney with the firm? If so, contact the firm and ask them if they have conformed copies. They're actually duplicate originals signed by all the individuals.
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I ment we CAN NOT do a new POA because MIL signature is meaningless now...Dr declares her incompetent.
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Can do a new POA because MIL is deemed incompetent by 2 doctors. Original was not filed in county. We have plenty of copies that states these are valid as original. Title company requires original that doesn't now exist. What to do?
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That should say the bank "required".
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Why wouldn't there have been a copy? I made sure I had several copies of my mom's just in case. The bank rewuired their own POA form. Maybe there is one there? If your mom is mentally caple of signing another POA, she can sign her own sale papers for the house.
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Was the POA filed with the Register of Deeds in the county of residence? Some states require that and it has a Book and Page number like any other legal document that is filed. i might see if that would suffice. I'm not sure if they keep your original and mail you a copy or the other way around.
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If the the original POA was done with a lawyer, maybe a certified copy might surfice. Other than that, a new one will have to ne initiated.
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You get a new POA. No other way.
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