Can Power of Attorney Sell Property? Rules for Attorneys

Can Power of Attorney Sell Property?

Yes. If you have Property and Financial Affairs LPA, you can sell the donor's property. But there are important rules and considerations.

The Basic Rule

A Property and Financial Affairs LPA gives the attorney power to:

• Manage the donor's property
• Buy, sell, or rent property
• Handle all financial matters

This includes selling the donor's home if necessary.

When Selling is Appropriate

Common valid reasons:

• The donor needs to fund care home fees
• The property is too large for the donor to manage
• The donor has moved in with family
• Maintenance costs are unsustainable
• The donor expressed wishes to sell

Your Duties When Selling

As attorney, you must:

1. Act in the donor's best interests Not your interests. Not other family members' interests. The donor's interests.

2. Consider the donor's wishes Did they express any preferences about their home? These should guide decisions.

3. Get market value You must sell at a fair price. Getting independent valuations is essential.

4. Keep records Document why you sold, for how much, and how you determined that price.

Restrictions to Check

Look at the LPA document for:

• Any specific restrictions on property sales
• Requirements to consult others before major decisions
• Instructions about the family home

Some LPAs include conditions like "The attorney must not sell my home without consulting my children."

When You Should NOT Sell

Without clear reason: Selling someone's home is a major decision For personal benefit: Buying it yourself or selling to family at undervalue Against expressed wishes: If the donor clearly wanted to keep the home Prematurely: If the donor might recover and return home

The Practical Process

Step 1: Determine if sale is in best interests Step 2: Check LPA for restrictions Step 3: Consult family/others as appropriate Step 4: Get professional valuation Step 5: Instruct solicitor for conveyancing Step 6: Provide certified LPA to solicitor Step 7: Sign on donor's behalf as attorney

Capital Gains Tax Consideration

If selling someone's home:

• Their main residence is usually CGT exempt
• But if they have not lived there recently, CGT may apply
• Seek professional tax advice

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