Can title companies refuse to accept POA without doctor documentation of mental capacity? If so, why do attorneys sell POAs without them?

Leti22, my parents were in their mid to late 90's when they had new Power of Attorney documents made. And they used an Elder Law Attorney. And at no time did the Attorney ask for a doctor's documentation. Elder Law Attorneys are trained to notice if a client is having thinking issues or not.

One thing that one should have in their POA is the actual address of the house they own. So many POA's are written without that information which can cause a major delay here in my State.

My parents' old POA's were older than dirt and State laws had changed over those decades. Thank goodness they also updated their Wills, otherwise it would have been a disaster.

There is another post concerning POA so again I read Moms. Her healthcare POA notes, by the Witness, that Mom appeared to be of sound mind, free of duress and undue influence. Her financial shows no witness but the notary notes "that execution of this document was done voluntarily." Her medical needs a doctor her financial was immediate.

So it all comes down too...read your Financial and Healthcare POAs very carefully.

This is something new for me. Usually when POAs and DPOAs are drawn up the person can't assign anyone unless that person is competent to handle their own affairs. If a Springing, then a letter is needed from a Dr or two stating that the person is not capable of handling their own affairs to put the POA in effect.

So, hopefully the lawyer your parents used is still around. Just have him write a letter saying she was of sound mind at time POA was assigned and that as of now, suffering from Dementia, can no longer make informed decisions so her POA would be effective. If that lawyer is not around, then any lawyer should be able to say that a POA cannot be assigned if the person was not competent to do so then going on to say that the person has now been found incompetent. Get a letter from her Dr. Stating she is incompetent.

I just looked at my Moms and nephews POAs. There is nothing in the writing in these POAs that say either are competent to assign a POA. Both drawn up in the same state by different lawyers.
Moms says POA but she is given the choice when she signed to make it Immediate or Springing. She chose immediate so maybe that is why the POA was never challenged. Her Medical reads "DPOA for Medical". My Nephews reads DPOA and the word Immediate is used. His medical reads "Advance Directive for Healthcare" and that is only effective if he is incompetent or not able to make decisions because...maybe he is in a coma.

So, its very important that you read your POAs. Mine says I have the right to sell. But I have never heard you have to prove they were competent at time of assigning POA. If this is a new law, I would say anything written before that law does not count.

Springing POAs only take effect IF the principal is not able to make decisions on their own or has asked you to handle somethingfor them. In that case, documentation of disability from a doctor or at least a letter from the principal is required for ALL POA actions. I provided such documentation for other doctors (specialists), and the attorney handling property sales until the attorney pointed out my mother's POA was not springing - it had been in effect from the day she signed it. I had to privide the court's orders on guardianship for my father in similar situations. When dealing with a senior's rights, I believe such measures are completely appropriate.

This is an interesting question, and situation.

In my experience, title companies can and do request additional information, but again in my experience, that info has generally related to encumbrances. I think it would be up to the title company to establish what it requires as additional documentation. - it is in fact the company that's taking the risk of ensuring valid title.

You might also want to contact a different title company to see if it takes the same position.

Do either of the documents specifically include a provision affirming that the parents are of sound mind and qualified to execute the dox?

There's another issue though, and that's whether the second document SPECIFICALLY rescinded and rendered invalid the first document. That could create enough question in the title company's review to make the demands it has made.

The attorneys that did your parents POA's should have asked them if they wanted a Springing POA or a Durable POA. With a Springing POA it cannot be used by the agent until the principal actually becomes incapacitated and that usually requires doctors documentation stating as such. While a Durable POA is effective the day it is signed.
I just recently had both my POA's(medical and durable)done by a local attorney and he not only asked me which I wanted, but also recommended that I do the Durable so my children could act on my behalf immediately, and not have to wait for any documentation from doctors.
I can only guess that since the Title Co. has refused said POA, that it must be a Springing one.