Which document provides legal authority for an agent to act on behalf of a principal in transactions?

The durable power of attorney is a legal document that grants an agent the authority to make decisions and act on behalf of a principal in various matters, including real estate transactions. This document is particularly significant because it remains effective even if the principal becomes incapacitated, ensuring that the agent can continue to act in the best interests of the principal without interruption.

In the context of real estate, the durable power of attorney can empower the agent to sign contracts, make decisions on property management, or handle financial matters related to real estate, making it a crucial tool for individuals who may not be able to make decisions for themselves due to health or other reasons. This level of authority differentiates it from other documents listed in the choices.

Conversely, a sales agreement is specifically a contract for the sale of a property, outlining the terms between the buyer and seller but does not confer authority to act on behalf of the principal. A listing agreement is a contract between a property owner and a real estate agent to market and sell a property, but it does not provide broad powers to act beyond that specific task. A lease agreement pertains to rental contracts between landlords and tenants and does not grant agency authority.