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
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
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
Create Property and Financial Affairs LPA
Ensure someone can manage your property if you cannot.
Ready to create your LPA?
Sort it calmly, while it’s straightforward. Both types of Lasting Power of Attorney, free to make, checked by a person before you sign.
Explore more LPA Fundamentals guides →Related articles
What is a Lasting Power of Attorney? A Plain-English Guide
A Lasting Power of Attorney lets someone you trust make decisions for you if you can no longer make them yourself. What it covers, what it costs, and how to set one up.
LPA vs Enduring Power of Attorney: What's the Difference?
EPAs were replaced by LPAs in 2007. Learn the key differences between Enduring and Lasting Powers of Attorney, and what happens to existing EPAs.
Power of Attorney vs Lasting Power of Attorney Explained
Confused by the different types of Power of Attorney? This guide explains the difference between Ordinary and Lasting Powers of Attorney in the UK.
Do I Need a Lasting Power of Attorney? 10 Signs You Do
If you own anything, run anything, or hold firm views about your own care, the answer is yes. The specific situations where the case stops being general.
What Happens If You Don't Have an LPA? The Consequences
Frozen accounts, an unsellable house, doctors deciding treatment, and months at the Court of Protection. What losing capacity without an LPA actually means.