New Form Power of Attorney Effective June 13, 2021 (NY)
General Obligations Law § 5-1501 et seq. has recently been amended, resulting in significant changes to the New York Powers of Attorney law. The changes that will affect your real estate practice can be summarized as follows:
- A new statutory form Power of Attorney must be used for Powers of Attorney executed on or after June 13, 2021. Powers of Attorney executed prior to June 13 in conformity with the old law remain valid.
- The signature of the principal must be witnessed by two disinterested witnesses and acknowledged by a notary. The notary may act as one of the two witnesses.
- Under prior law, any revisions, alterations, or modifications of the statutory form could invalidate the Power of Attorney. The new law permits a Power of Attorney that “substantially conforms” and allows insignificant mistakes in wording, spelling, punctuation, or formatting, or the use of bold or italic type, or language that is essentially the same as but not identical to the statutory form, including utilizing language from a previous statute.
- Third parties accepting a properly executed Power of Attorney in good faith are protected from liability in the event the Power of Attorney is not valid.
A more detailed analysis and a copy of the new Power of Attorney form will be distributed to our agents as the effective date for this new law draws nearer.
If you have any questions, please contact our Senior Counsel Stephen Maggiola at [email protected] or 914-333-3113.
