Much of the legal world was all a buzz last fall when the new New York law went into effect that replaced the old all-purpose statutory short form of power of attorney. Powers of attorney are common in the world of trusts & estates, elder law and in real estate transactions. Most believe that the law that was intended to clarify and streamline powers of attorney has only complicated them. The new law doesn't require that the statutory form is used but does require that in order for any other form to be used, it must be in 12 point font and contain all of the explanations provided by statute to the person giving the power of attorney and to the agent, verbatim, as set forth in the statute. All of the powers of attorney that were executed prior to September 1, 2009 are still valid but any powers signed after that date must comply with the new law.
It is commonplace for a condominium unit owner to be required to sign a unit power of attorney in favor of the condo board of managers at the closing for purchase of their condominium unit and for purchasers to sign one at the closing for the resale of a condominium unit. The form such power of attorney will take is contained in the condominium offering plan and there will be many occasions where that offering plan was accepted and in place prior to September 1, 2009 but unit closings occur after September 1, 2009. Sponsors, condominium associations and the attorneys that represent them need to be aware that the new form of power of attorney should be used in lieu of the form contained in the pre-September 2009 offering plan. There are currently several proposed bills in the legislature that seek to amend some of the scope and provisions of the new law. Until the form, its provisions and the applicability of requirements are clarified, use caution and consult an attorney when preparing or signing a power of attorney.
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