Can A Power Of Attorney Sell Property Before Death? (It Could Be Illegal)

Can a power of attorney sell property before the death of the principal?

In this article, you’ll learn about:

the POA’s ability to sell property
what types of property a POA can sell
what types of POAs are allowed to sell property
how to tell if the POA can sell property or not
steps for selling property as a POA
risks of selling a property as a POA

Let’s dig in.

The Hive Law Has Been Featured In

Get A FREE Consultation!

We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

Can A Power Of Attorney Sell Property Before Death?

Yes, a power of attorney (POA) can sell a property before death.

A power of attorney grants legal authority to another person.

It allows them to act on behalf of the principal.

The scope of the power of attorney will depend on the terms of the document.

Let’s say the power of attorney grants the authority to sell the property.

Then the agent can sell the property on behalf of the principal before death.

It’s important to note that the POA must:

act in the best interest of the principal
follow any instructions or limitations set out in the POA

Also, the power of attorney expires upon the death of the principal.

At that point, the executor of the estate would be responsible for:

managing the assets
distributing the assets

What Property Can A Power Of Attorney Sell?

The type of property that a POA can sell depends on the POA document.

Let’s say the document grants the authority to sell a property.

In that case, the agent can legally sell the property.

A power of attorney can sell any type of property, including:

real estate
personal property
other assets (i.e., stocks)

The power of attorney must specifically grant the authority to sell the property.

Let’s say the power of attorney does not grant the authority to sell property.

Then the agent does not have the legal authority to sell that property.

The principal may need to grant a new POA to sell the property before death.

Types of POAs That Can Sell Property Before Death

Several POAs can sell property before the death of the principal, including:

General Power of Attorney. This POA grants the agent broad authority to act on behalf of the principal. They can make decisions regarding their finances and assets. A general power of attorney can include the authority to sell property before death. But the scope of the power will depend on the specific terms of the document.
Limited Power of Attorney. A limited POA grants the agent the authority to perform a specific task on behalf of the principal.
Durable Power of Attorney. A durable POA remains in effect no matter what (outside of death). Even if the principal is incapacitated or unable to make decisions.
Springing Power of Attorney. A springing POA only takes effect under certain conditions. Like if the principal becomes incapacitated or unable to make decisions.
Financial Power of Attorney. A financial POA allows the agent to manage the principal’s finances.

Let’s say any of these grants the authority to sell property.

Then the agent can legally sell the property on behalf of the principal.

Limitations On Power of Attorney To Sell Property

A POA can sell a property before death.

But there may be certain limitations or restrictions.

Some common limitations on a POA’s ability to sell property include:

Limited Scope. The POA may limit the agent’s ability to sell certain types of property. This could be real estate or personal property.
Time Limitations. The POA may limit the timeframe during which the agent can sell the property. This could be requiring the sale to get completed within a certain period of time.
Financial Limitations. The POA may limit the sale price or make the agent get a minimum price for the property.
Prohibited Actions. The POA may prohibit certain actions related to the sale of the property. For example, prohibiting the agent from selling the property to a specific person.
Judicial Approval. A court may need to approve the sale of real estate before the agent can complete the sale.

Review the terms of the power of attorney document.

This can help you understand any limitations the POA has on selling property.

Let’s say the agent:

exceeds the authority granted by the power of attorney
violates any limitations or restrictions

They may get held liable for any resulting damages or losses.

Steps For Selling Property Before Death As A POA

Let’s say you’re a POA that needs to sell property before someone’s death.

Here are the steps that you need to take:

Review the Power of Attorney Document. The POA should specify the authority to sell the property, any limitations on this authority, and any specific instructions for completing the sale. Be sure to review this document carefully before proceeding with the sale.
Get Necessary Documents. You may need to get various documents and information. Stuff like a property deed, a survey, a title report, or a property disclosure statement. You may also need to get a written agreement with the buyer outlining the terms of the sale.
Hire a Real Estate Agent or Attorney. You may need to hire a real estate agent or attorney to assist with the sale. Especially if you are unfamiliar with the process or if there are any legal issues involved.
List the Property for Sale. If you are selling real estate, you will need to list the property for sale and market it to potential buyers. Your real estate agent can assist with this process.
Review Offers and Negotiate Terms. Review the offers and negotiate the terms of the sale. This includes the purchase price, closing date, and any contingencies or conditions.
Get Necessary Approvals and Signatures. You will need to get any necessary approvals or signatures from the principal.
Close the Sale. You will need to attend the closing of the sale. You will have to sign the documents. And the property will get transferred to the buyer.

The specific steps involved can vary depending on:

the type of property
the state where the property is

You may also need to follow legal requirements or regulations in your area.

Risks And Challenges Of Selling Property As A POA

Selling property as a power of attorney can present several risks and challenges.

Some potential risks and challenges include:

Lack of Clarity or Authority. Let’s say the POA is unclear or does not grant the agent the authority to sell the property. The sale may get challenged or invalidated.
Legal and Financial Liabilities. The agent may get held liable for any damages or losses. But only from a failure to follow legal or financial regulations related to the sale of the property.
Conflicts of Interest. Let’s say the POA can financially benefit from the sale of the property. There may be conflicts of interest. These can lead to claims of fraud or other improprieties.
Mismanagement of Funds. An agent mismanaging funds received from the sale may be subject to legal action. Or they may get required to repay the funds to the principal or their estate.
Family Conflicts. Selling property as a power of attorney can create conflicts within the family. Especially if they disagree with the decision to sell the property or the terms of the sale.
Legal Challenges. The sale may get challenged by family members, creditors, or other interested parties. This could lead to costly and time-consuming legal challenges.

Get Help Selling Property

If you are needing to sell property as a POA, fill out the form on this page.

(Or if you think a POA is overstepping its boundaries by selling a property.)

Our estate planning attorneys have the experience you need to defend your rights.

This way, you don’t:

wrongfully lose your interest in a property
mess up the sale of the property and get sued
illegally sell a property

We can provide you with that.

Talk soon.

Get A FREE Consultation!

We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

Can A Power Of Attorney Sell Property Before Death? (It Could Be Illegal)

Table of Contents

The Hive Law Has Been Featured In

Get A FREE Consultation!

Can A Power Of Attorney Sell Property Before Death?

What Property Can A Power Of Attorney Sell?

Types of POAs That Can Sell Property Before Death

Limitations On Power of Attorney To Sell Property

Steps For Selling Property Before Death As A POA

Risks And Challenges Of Selling Property As A POA

Get Help Selling Property

Get A FREE Consultation!

Share This Post With Someone Who Needs To See It

© 2024 The Hive Law