Selling someone else’s house is a big responsibility.
The most likely scenario that would lead to this is when you’ve been granted power of attorney.
In this blog, we’ve explained whether someone with the power of attorney can sell a house.
What is a power of attorney?
A power of attorney is a legal document that gives the holder the authority to make decisions on behalf of another person.
This permission has been directly or indirectly granted by the person for whom they’re making decisions.
(In some cases, more than one person is appointed to hold power of attorney jointly.)
A solicitor drafts the relevant legal paperwork to make a power of attorney legitimate.
For it to be valid, a witness must confirm that no one is being forced to do something against their will.
Reasons for delegating a power of attorney
A few reasons someone might give a power of attorney to another include:
- They have entered old age
- Physical or mental disability
- Trusting someone else’s judgement better than their own.
Length of power of attorney period
Some powers of attorney are set up for a fixed period. This is sometimes known as an ordinary power of attorney (OPA).
OPA might be useful if someone is in hospital for a few months and is thus unable to make choices.
But others last indefinitely. These are known as a lasting power of attorney (LPA).
LPA is used when someone is in a permanent condition. For example, when they reach a certain age.
How to know if someone has a power of attorney
In the UK, this information is stored by the ‘Office of the Public Guardian’.
You can apply to search their register to see if they have a record of a power of attorney, deputy or guardian acting on someone’s behalf.
This is useful because the person in question isn’t always of sound mind to answer this question themselves.
For example, someone with dementia might not remember giving LPA to someone before they had the illness.
Can a power of attorney sell property?
In many cases, yes.
The terms of the power of attorney will be stated when it’s first made.
Some terms focus on health and welfare, while others include property and finances. If it’s the latter, then you have the power to sell a person’s property.
Can a power of attorney rent out a house?
Yes. This is legitimate, provided you have the necessary documents to prove your power of attorney.
A management company could help maintain the property and find the right tenants if you’re too busy to do it yourself.
Can a power of attorney buy a house?
Yes. A power of attorney can do this on behalf of someone else, using their money.
It should only be done when it’s in the best interests of the person it is for and if their power of attorney has all of the relevant paperwork.
In order to establish the former point, a power of attorney should consider all points about the differences between selling and renting property.
Steps for selling a house for someone you have power of attorney over
1. Check you meet conditions
Ensure you have the correct type of power of attorney, i.e., a long-term power of attorney that covers finances and property.
After all, some types of power of attorney are temporary and only cover health and welfare.
Of course, your power of attorney is only valid when registered with the office of the public guardian.
2. Be certain of your decision
You should only sell the person’s property if you believe it’s in their best interests. You have a duty to act as you think is best for them.
3. Consider informing and consulting relatives and friends
You may choose to inform all people affected by the sale. Some people argue that this is your moral duty.
But you might avoid it if it’s likely to cause more trouble and disruption for your loved one.
With those you do inform, discuss the decision. They might have useful knowledge on aspects of the process that will benefit the person you are acting on behalf.
4. Consider how you will sell the house
There is more than one way to sell a house. The most common way is to use an estate agent on the open market.
But there are some circumstances where alternative property selling channels are more valuable.
For example, a house might need to be sold quickly because the owner needs to fund their care.
In this case, property auctions or cash house buyers can help.
5. Consider possessions
If the person you are selling the house for is downsizing or moving into a care home, you must find a place for their possessions.
Selling an empty house is obviously ideal, but it often isn’t possible. You can sell a house with furniture to make this easier.
If this isn’t possible, you may have to consider selling the furniture elsewhere or storing it until you can sell it.
6. Inform relevant organisations
You informed all the relevant organisations about this decision.
If the person you have power of attorney over is moving into a care home, ensure this is organised.
(There must not be a period where the person you have power of attorney over is without a home.)
Service providers for the property should also be told, especially if the house is unoccupied while you try to sell it. This includes utility companies and mortgage lenders.
All the relevant contracts should be drawn to a close. Insurance is another typical example.
