Selling real estate on behalf of another person (even an immediate family member) can’t be done without formal legal authority. If you’ve been asked to help a loved one sell their house because they aren’t able to manage the process on their own, you will likely need Power of Attorney (POA).
Like selling a house, obtaining POA is a layered process that comes with a wide range of considerations.
As real estate agents who work closely with downsizers and families managing estate sales, we have unique insight into what it takes to sell a house with Power of Attorney. In this blog post, we’re sharing important information with you.
Continue reading to learn more about obtaining Power of Attorney to sell property in Ontario.
What is the Power of Attorney?
Put simply, Power of Attorney is a designation that allows a person to make legally binding decisions on behalf of someone else. In the context of real estate, it can be used to sell someone’s house if they’re no longer able to do so on their own.
There are two main parties in a POA scenario: The Grantor and the Attorney.
- The Grantor is the individual who provides another person the authority to act on their behalf.
- The Attorney is the person who gains the right to make decisions on behalf of the Grantor.
Can You Sell a House With Power of Attorney?
Yes, having proper Power of Attorney can give you the necessary authority to sell someone’s house. This includes the right to decide how the property will be prepared for the market, listed, negotiated, and closed on.
However, there is a caveat to this. You can’t sell a house with simply any type of Attorney. You’ll need to obtain the right POA before you can proceed.
Looking for guidance on downsizing and estate sales? Consider these related readings from my blog.
- How to Prepare For an Estate Sale in Ontario
- Best Peterborough Neighbourhoods For Retirees & Downsizers
- Should You Downsize Before Retirement?
Types of POA
Power of Attorney isn’t an all in one pass to manage another person’s affairs. Instead, you’ll need to apply for (and be endowed with) the most relevant type of Attorney based on how you’re supporting the Grantor.
There are two types of POA in Ontario. The first is ‘Personal Care’, which allows you to make decisions about the Grantor’s health care, living situation, and similar aspects of day to day life.
The second category is ‘Property’, which, as the name suggests, allows you to make decisions pertaining to the Grantor’s assets and finances. This is the Power of Attorney you’ll need to legally sell someone’s home.
Power of Attorney vs. Probate
It’s important to note that Power of Attorney is different from the Probate process. While both are critical steps in gaining the right to sell another person’s home, they apply in completely separate circumstances.
Power of Attorney is required when a living homeowner is unable to navigate a home sale on their own. Probate, however, applies when the homeowner has passed away, and the property is part of the estate.
While becoming an Attorney can allow you to make binding decisions on behalf of another person, the full scope of authority it provides is different from Executorship.
Applying for Power of Attorney in Ontario
If you don’t yet have Power of Attorney or the right type, you’ll need to apply for it. Luckily, this process is relatively uncomplicated, and it can usually be done without a lawyer (although legal support may be required in more complex situations).
For your POA application, you will need a few things.
- The legal names and addresses of the person(s) receiving the Attorney
- Two separate witnesses, and their legal names and addresses
- Signatures from the Grantor, the individual receiving the Attorney, and the two witnesses
Once you have the necessary information, you can download Ontario’s POA forms via the online portal.
Selling a House With POA: Where to Start
Helping a parent, family member, or close loved one sell their house means juggling a long list of responsibilities, and acquiring Power of Attorney is just the start. So, where’s the best place to start? By finding the right Realtor for the job.
More than just helping you list the property, an experienced, full service real estate agent can make the process significantly easier and more efficient. They’ll also ensure you’re able to get the best possible return for the property based on the market.
Searching for more catch all home sale advice? Explore these related posts from my site.
Work With a Downsizing & Estate Sale Specialist
Need help selling a loved one’s home? I’m here to make the process as easy as possible.
Having sold homes across Peterborough and the Kawarthas for more than 30 years, I’ve developed a specialized process for families navigating POA and estate sales. My approach is full service and completely tailored to your individual needs, allowing you to take a step back and focus your energy on what matters most.
Selling real estate? I can help! Reach me at 705-927-2774 or email roger@teamcurrierhomes.ca
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