My situation is: I am a settlement agent for a real estate sale transaction wherein the seller is incompetent, but has executed a general durable power of attorney wherein the principal gave the attorney in fact power to sell real estate: “To sell, lease . . . or otherwise deal with any of my real property . . . including my residence . . . upon such terms and conditions as my attorney in its sole discretion may determine is proper . . . .” The power of attorney contains language that clearly makes it durable. The contract for sale of the real property was executed after the principal became incompetent. The principal has Alzheimer's. There is no court order granting the attorney in fact to sell this specific property. Should I require the agent to obtain specific authority to sell the property under the terms of the contract before conducting the closing?

Assuming the power of attorney complies with the Durable Power of Attorney Statute (TCA 34-6-101, et seq.) I think you should be okay. See particularly 34-6-109(3).

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