Power of Attorney and Selling for a Parent

Selling a home for someone else is one of the most serious jobs a family member can take on. Perhaps your mother has moved into long-term care and the house in Etobicoke is sitting empty, or your father’s memory is fading and the bills are piling up. If you hold a Power of Attorney, you may be the person who has to make it all happen, carefully and in their best interest.

And if you are the parent reading this, the most loving thing you can do for your family may be to put the right papers in place now, while you are well and can choose freely. This guide explains how a Power of Attorney works in Ontario, what it means to act under one, and how to plan ahead. It is general information, not legal advice, so please speak with a lawyer about your own situation.

What a Power of Attorney for Property does

In Ontario, a Continuing Power of Attorney for Property lets a person you choose manage your property and finances, including selling your home, if you can’t. “Continuing” means it keeps working if you lose mental capacity. Without one, the family may have to apply to the court or the Public Guardian and Trustee, which takes time and money.

The person you name is called your “attorney.” It does not have to be a lawyer; it is usually a spouse, an adult child or another trusted person. You can name more than one, and say whether they must act together or can act separately.

According to the Ontario government, an attorney for property can start making decisions about your financial affairs immediately unless the document says otherwise. Some people prefer to say it only takes effect if they become unable to manage on their own. Your lawyer can explain the choices and help you word it the way you intend.

Why it matters so much for a home sale

A house cannot be sold without someone with legal authority signing the listing agreement, the agreement of purchase and sale and the closing documents. If the owner can no longer understand and make those decisions, and there is no valid Power of Attorney for Property, the family may be stuck until a court or the Public Guardian and Trustee process is completed. Meanwhile, the house may sit empty, the costs keep running, and the family is under strain.

An example: a son in Calgary helping his mother in Etobicoke may assume that because he is her only child he can simply sell her house when she moves into care. Without a Power of Attorney, he cannot. With one, prepared years earlier at the same time as her will, he can work with a local real estate lawyer and Realtor and handle much of the process from a distance.

If you are acting for a parent

Being an attorney is a position of trust. The law expects you to act honestly, in your parent’s best interest, and to keep good records.

• Bring the original signed Power of Attorney to the real estate lawyer early
• Act in your parent’s best interest and keep careful records of every dollar
• Keep your own money separate from your parent’s
• Involve your parent in decisions as much as they are able
• Keep brothers and sisters informed, even if they have no formal role
• Keep copies of the listing, offers, appraisals and closing documents

Involving your parent matters. Even someone with memory loss may have strong feelings about who buys the house, what happens to the garden, or which neighbour gets the piano. Listening to those wishes is respectful, and it also helps show that you acted properly.

Selling the home step by step

1. Confirm your authority. Find the original Power of Attorney for Property and have a real estate lawyer review it before you list. Check whether it names more than one attorney and whether they must act together.
2. Think about your parent’s needs. The sale should serve your parent: paying for care, reducing costs, or protecting the value of the home. Write down the reasons for the decision.
3. Get a fair market value. Ask a Realtor for a written market evaluation. Selling at a fair price, through a fair process, protects both your parent and you.
4. Let the professionals know. Tell the Realtor and the lawyer from the start that you are signing as attorney. They will know how documents need to be signed.
5. Handle the contents with care. Make sure keepsakes are identified and stored, and that family members are treated fairly.
6. Deposit the proceeds properly. Sale proceeds belong to your parent and should go into your parent’s account, not yours.
7. Keep the records. Keep a clear record of the sale and how the money was used. You may be asked to account for it later.

Plan ahead

The best time to sign a Power of Attorney is while everyone is healthy. Most people also sign a separate Power of Attorney for Personal Care for health and care decisions. Many families do both at the same time as their wills.

The Ontario government offers a free Power of Attorney kit on ontario.ca. Many people still choose to work with a lawyer, especially if they own a home, have children from more than one relationship, or want to give specific instructions. A lawyer will also make sure the document is signed and witnessed correctly, which is essential for it to be accepted later.

Questions to ask yourself before signing

• Who do I trust to handle money honestly and carefully?
• Do they live nearby, or could they manage from a distance?
• Should I name more than one person? If so, must they agree on every decision?
• Who would be my backup if my first choice cannot act?
• Have I told the people I chose, and do they know where the original is kept?

Common mistakes to avoid

• Waiting too long. A Power of Attorney can only be signed by someone who has the mental capacity to understand it. Once capacity is lost, it is too late.
• Mixing money. Putting a parent’s money into your own account, even for convenience, can cause serious problems.
• Losing the original. Lawyers usually need to see the original signed document. Keep it somewhere safe and tell your attorney where it is.
• Keeping siblings in the dark. Secrecy breeds suspicion. Regular updates prevent most family disputes. See Working Together as Siblings.
• Thinking it lasts after death. A Power of Attorney ends when the person dies. From then on, the estate trustee named in the will takes over. See Selling an Estate Property.

Frequently asked questions

Can I sell my mother’s house if I have her Power of Attorney?

Usually, yes, if the document is a valid Power of Attorney for Property and does not restrict it. Have a real estate lawyer review it before you list, and remember that the sale must be in your mother’s best interest.

Is a Power of Attorney for Personal Care enough to sell the house?

No. Personal Care covers health and care decisions. Selling property requires a Power of Attorney for Property.

What if my parent never signed a Power of Attorney?

If your parent can still understand the decision, they may be able to sign one now with a lawyer’s help. If not, the family may need to apply to the court or work with the Public Guardian and Trustee. Speak with a lawyer as early as possible.

Can I be paid for acting as an attorney?

There are rules about compensation for attorneys. Ask a lawyer before taking any payment, and record it carefully if you do.

How Irina can help

As a Seniors Real Estate Specialist®, Irina understands the extra care involved when a family sells a home on behalf of a parent, including when relatives live in another city or country. She works alongside your lawyer, keeps everyone informed, and is happy to start with a quiet, no-pressure conversation in English or Russian. Contact her when you are ready.

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