Selling your own family home is often associated with positive emotions and excitement for the next chapter of your life. Even though you may feel some stress during the process, your transition is still a life-changing event that you can look forward to. 

When selling for someone else, it can be a different story. You may be acting on behalf of an elderly or disabled relative who can no longer handle the transaction on their own. On top of a busy schedule, there are many details to attend to and the process can feel tiring. On top of everything else, there are legalities to be aware of.

What Does Power of Attorney Mean?

You cannot sell someone else’s property if your name isn’t on the title, and verbal permission from the owner is not enough. Before you can act on behalf of someone else, you will need POA (Power of Attorney) status. You can obtain this by speaking with your loved one ahead of time while they are still of sound mind and able to make critical decisions. Although you may be able to find documents online, it is always better if an experienced lawyer guides you through the process.

Here are the two types of POA to be aware of:

• Power of Attorney for Personal Care: This is where you will make decisions regarding medical care or health support on behalf of your loved one.
• Power of Attorney for Property: This designation allows you to make financial decisions for someone else, including selling a house.

Assigning Power of Attorney can be a sensitive subject, and many people prefer to avoid the discussion altogether. But life is full of twists and turns, and none of us knows what’s around the corner. Being prepared just makes sense. If you find yourself in the position of selling on behalf of someone else without POA, you’re in for a world of challenges and will likely have to go through the court system.

Did you know that real estate contracts are legally binding? The posts below will help you stay on track:

• How Canada’s Newest Legislation Impacts Sellers
• What Real Estate Lawyers Do
• Conditions & Clauses on a Real Estate Purchase

An Executor is Different From POA

You may hear talk of POA and Exectorship as if they are one and the same, but they are significantly different.

• POA grants you the ability to act on behalf of a relative while they are still living if they become unable or unwilling to manage their financial or health decisions. 
• If you need to enact the wishes of someone who has passed away, you must be an executor. 

While one person can perform both roles, each involves a level of responsibility, trustworthiness and ability to get things done. It may feel overwhelming when a relative asks this of you, but it shows you that they think highly of you!

Your Obligations as POA

Assigning POA can mean giving up a lot of autonomy, and someone has to have a lot of trust in you to put this kind of power in your hands. It’s your responsibility to take this role seriously and aim to always do right by them. It’s not just about not defrauding someone, which is obviously illegal. However, you should be mindful and considerate, doing everything possible to ensure your loved one feels that you are listening and acting in their best interests.

Even when you have POA privileges, it’s essential to keep the lines of communication open and let your loved one know what is happening to the best of their ability. You should respect their wishes if they are still capable and want to be involved in the process. In other words, having POA allows you to manage the legalities and details of selling a home for someone else. Still, you should only act with their permission and knowledge. 

In addition, you can’t use your authority to purchase the home for yourself unless you’ve previously come to a written agreement.

The Practical Side of Selling a House

Now that you know about your moral and legal obligations as POA, it’s time to take a look at the nuts and bolts of the selling process. It’s a little different than handling your own transaction. Ideally, you want plenty of time to prepare for a sale so you can earn the highest possible return on investment. 

However, selling a house for someone else often comes with challenges and limitations. For example, finding the time to clean, declutter, paint and update a home you don’t live in can be tricky. You may have even less time to prepare if you need to sell the house quickly.

Since your elderly relative may find living in a construction zone stressful, you are limited as to what updates or renovations you would have otherwise made. Instead, you’ll focus on the minor steps you can take that will impact the final price.

How to Make Your House Stand Out With Minimum Effort

• Going through the house with a fine-tooth comb to ensure every room is sparkling clean and clutter-free will help make a positive first impression on potential buyers.
• Focus on the outside of the home. The effect of curb appeal cannot be overstated, and there are so many improvements you can make that will not disrupt your relative. A well-manicured lawn, seasonal decor and even a flower garden can make the home look warm and welcoming before a potential buyer steps inside.
• Make minor repairs and updates that refresh and elevate the interior of the home. Fixing up any peeling paint and replacing worn-out hardware and light fixtures will go a long way toward maximizing the value of your sale.
• Staging can transform the appearance of the home with far less effort than you realize. Your real estate agent may even offer this service in the listing agreement.

Looking for more tips to maximize the value of the sale without investing heavily in renovations? Our posts below will give you some ideas:

• Minor Upgrades, Maximum Results
• The Power of Staging When Selling Your Home
• How To Stand Out In A Changing Market

A Local Real Estate Agent Can Help

Selling a house can be time-consuming, especially when you’re acting as a POA for someone else and juggling a busy career or family life. However, a local real estate agent can coordinate every aspect of the transaction, from pricing the home competitively for the market to knowing what updates to make for the best results. Above all, you’ll have an expert standing by with a friendly ear to provide you with non-stop support every step of the way.

Do you have questions or concerns about selling a home for yourself or someone else? Our experts are ready for anything and are here to help. Reach out right here or call 905-332-9223 to connect with us today.