Power of attorney is a legal document that gives someone else the power to act in your place. That person is legally allowed to take care of financial, medical, and other matters for you, including paying bills, signing documents, or directing medical care. In the case of a real estate transaction, the power of attorney is usually only valid for that single transaction.
How can power of attorney affect your title to your home? If a deed was executed under a falsified or expired power of attorney in the past, your title is vulnerable to a claim of ownership by someone else. Should that happen, title insurance would protect you and cover any losses you suffer as a result.