Connecticut law validates unrecorded powers of attorney for real estate transactions

Connecticut's House Bill 7064, introduced on April 23, 2025, aims to streamline the validity of real estate transactions executed under a power of attorney, addressing a significant legal concern for property owners and fiduciaries alike. The bill proposes that any deed, mortgage, lease, or similar instrument executed under a power of attorney remains valid even if the power of attorney itself is not recorded in the land records, provided certain conditions are met.

Key provisions of the bill include a stipulation that these instruments will be considered valid unless a legal action is initiated to contest them within a specified timeframe—fifteen years for most cases and ten years for transactions involving fiduciaries. This change seeks to reduce the legal uncertainties that can arise when powers of attorney are not recorded, which can complicate property transactions and create potential disputes.

The bill has sparked notable discussions among lawmakers and legal experts, particularly regarding its implications for property rights and fiduciary responsibilities. Supporters argue that it will enhance the efficiency of real estate transactions and protect the interests of individuals who may not have the means to record their powers of attorney promptly. Critics, however, express concerns that the bill could lead to potential abuses, particularly in cases where fiduciaries might exploit the lack of recording requirements.

The economic implications of House Bill 7064 are significant, as it could facilitate smoother property transactions, potentially boosting the real estate market in Connecticut. By clarifying the validity of certain transactions, the bill may also reduce litigation costs associated with contested property transfers, benefiting both buyers and sellers.

As the bill moves through the legislative process, its supporters are optimistic about its potential to simplify real estate dealings and enhance legal clarity for Connecticut residents. However, the ongoing debates highlight the need for careful consideration of the balance between facilitating transactions and protecting against potential misuse of fiduciary powers. The outcome of this bill could reshape how property transactions are conducted in the state, making it a critical issue for homeowners, real estate professionals, and legal practitioners alike.