Selling a parent’s house using a power of attorney (POA) can seem to be a complex process, but it is certainly possible if you follow the correct legal procedures.
This guide will help you understand the steps involved and ensure you act within the law.
Table of Contents
Understanding Power of Attorney
A power of attorney is a legal document that allows one person (the attorney) to act on behalf of another (the donor) in legal or financial matters. There are two main types of POA relevant to selling property:
- Lasting Power of Attorney (LPA): This can be for health and welfare or property and financial affairs. To sell a house, you need an LPA for property and financial affairs.
- Enduring Power of Attorney (EPA): These were replaced by LPAs in 2007 but are still valid if created before that date. EPAs cover property and financial affairs.
Key Steps to Selling a House with POA
These are steps to selling your parent’s home with a power of attorney:
1. Verify the Type of POA
Ensure you have the correct type of POA. An LPA for health and welfare does not grant the authority to sell property. You need an LPA for property and financial affairs or an EPA.
2. Check Registration
- LPA: Must be registered with the Office of the Public Guardian (OPG) to be valid.
- EPA: Must be registered with the OPG if the donor has lost or is losing mental capacity.
3. Review the POA Document
Check for any restrictions or conditions in the POA document. Some POAs may have clauses that limit the attorney’s ability to sell property or require the consent of multiple attorneys if they are appointed jointly.
4. Confirm Mental Capacity
If the donor still has mental capacity, they must consent to the sale. If they lack capacity, ensure you have a medical certificate or similar documentation to prove this.
5. Act in the Donor’s Best Interests
All actions taken under a POA must be in the best interests of the donor. This includes obtaining a fair market value for the property and ensuring the proceeds are used for the donor’s benefit.
6. Obtain Professional Advice
Engage a solicitor experienced in property and mental capacity matters to guide you through the process. They can help ensure all legal requirements are met and provide advice on any potential issues.
7. Inform Relevant Parties
Notify the estate agent, solicitor, and any other relevant parties that you are acting under a POA. Provide them with a certified copy of the POA document.
8. Handle the Sale Process
Work with the estate agent to market the property, negotiate offers, and complete the sale. Ensure all proceeds are managed in accordance with the donor’s best interests.
Example Scenario
Consider the case of Pauline, who has an LPA for her mother, who has dementia. Pauline needs to sell her mother’s house to fund her care. She ensures the LPA is registered with the OPG, checks for any restrictions, and obtains a medical certificate confirming her mother’s lack of capacity.
Pauline then engages a solicitor, informs the estate agent, and proceeds with the sale, ensuring all actions are in her mother’s best interests.
Can I sell my parents' house if I have power of attorney?
Yes, you can sell your parents’ house with the appropriate type of power of attorney (POA). Specifically, you need a Lasting Power of Attorney (LPA) for Property and Financial Affairs or an Enduring Power of Attorney (EPA).
The LPA must be registered with the Office of the Public Guardian (OPG) to be valid. If the POA document includes any restrictions or conditions, you must adhere to them. At all the times, you must act in the best interests of your parents and ensure the sale proceeds are used for their benefit.
What is the difference between a Lasting Power of Attorney and an Enduring Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that allows someone to appoint an attorney to manage their property and financial affairs or health and welfare. LPAs must be registered with the Office of the Public Guardian (OPG) to be valid.
An Enduring Power of Attorney (EPA) is an older form of POA that was replaced by LPAs in 2007. EPAs only cover property and financial affairs and must be registered with the OPG if the donor loses mental capacity.
What should I do if the donor of the power of attorney loses mental capacity?
If the donor of the power of attorney loses mental capacity, you must ensure that the POA is registered with the Office of the Public Guardian (OPG) if it is not already. An LPA must also be registered before it can be used.
An EPA must be registered once the donor starts to lose mental capacity. You should also obtain a medical certificate or similar documentation to confirm the loss of capacity. All actions taken must be in the best interests of the donor.
Can I sell a house if the power of attorney document has restrictions?
If the power of attorney document has restrictions, you must adhere to them. Some POAs may include specific conditions that limit the attorney’s ability to sell property or require the consent of multiple attorneys if they are appointed jointly.
It is important to review the POA document carefully to ensure compliance with any restrictions before proceeding with the sale.
What are the legal requirements for selling a house under power of attorney?
The legal requirements for selling a house under power of attorney include:
- Having a valid LPA for Property and Financial Affairs or an EPA.
- Ensuring the POA is registered with the Office of the Public Guardian (OPG).
- Acting in the best interests of the donor.
- Adhering to any restrictions or conditions in the POA document.
- Obtain professional advice, such as from a solicitor experienced in property and mental capacity matters.
- Informing relevant parties, such as estate agents and solicitors, and providing a certified copy of the POA document
What happens if I misuse the power of attorney?
Misusing the power of attorney can have serious legal consequences. If you act outside the scope of your authority or not in the best interests of the donor, you could be required to repay any money misused. Your power of attorney could be revoked, and an independent outsider could be appointed to manage the donor’s affairs.
It is essential to act responsibly and seek professional advice to avoid any legal ramifications.
How do I ensure the sale of the property is in the donor's best interests?
To ensure the sale of the property is in the donor’s best interests, you should:
- Obtain multiple professional valuations to ensure a fair market price.
- Use the proceeds from the sale for the donor’s benefit, such as funding their care or living expenses.
- Document all decisions and actions taken.
- Seek professional advice from a solicitor experienced in property and mental capacity matters.
- Communicate clearly with all relevant parties and keep thorough records
Different Methods of Sale
Selling an inherited house is a big decision, one that often comes with a mix of emotions and practical considerations. It’s not just about finding a buyer; it’s about choosing the right path that aligns with your family’s needs and circumstances.
Imagine standing at a crossroads, with one path leading to the swift and certain sale offered by Property Saviour and the other winding through the traditional route of an estate agent.
Each option has its own set of advantages and challenges. Property Saviour promises speed and certainty, ideal for those who need to resolve matters quickly and without the usual hassles.
On the other hand, an estate agent might offer a more familiar process, potentially fetching a higher price but often requiring more time and effort.
As you ponder these options, you need to consider not just the financial and legal implications but also the emotional weight of the decision.
Selling a family home can be a deeply personal experience filled with memories and sentiments. Balancing these emotional aspects with practical needs is key to making a choice that feels right.
Ultimately, the goal is to ensure that the process is as smooth and stress-free as possible. Whether you choose the efficiency of Property Saviour or the traditional approach of an estate agent, taking the time to weigh your options carefully will help you make this significant decision with confidence and peace of mind.
| Selling Route | Pros | Cons |
|---|---|---|
| Property Saviour | – Speed – No Estate Agent Fees – No Surveys or Valuations – Guaranteed Sale – Legal Fees Covered | – Potential Lower Sale Price |
Estate Agent | – Potential Higher Sale Price – Negotiation Opportunities | – Longer Selling Process |
Why Choose Property Saviour?
Here why our sellers love our service:
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
