Can I sell a family member's property under a power of attorney in Ontario?
Yes, a continuing power of attorney for property (CPOA) granted under Ontario's Substitute Decisions Act authorizes the attorney (the person given the power) to sell real property on behalf of the grantor if the document includes that authority. The CPOA must have been signed while the grantor had capacity; a POA signed after incapacity has set in is invalid.
The attorney has fiduciary obligations to act in the grantor's best interests, keep detailed records of transactions, and generally avoid conflicts of interest. Selling the grantor's home for less than fair market value or benefiting personally from the transaction can expose the attorney to legal liability.
When closing a sale under a POA in Ontario, your lawyer will require the original or a certified copy of the POA, verify it meets the requirements of the Substitute Decisions Act, and register a notice of the POA or include the attorney's authority in the transfer document. Some title insurers require additional verification. Starting this process early is important — title issues with POA transactions can take extra time to resolve, particularly if the document is old or has unclear language.
Key takeaways
- A valid continuing POA for property under the Substitute Decisions Act allows an attorney to sell real property
- The POA must have been signed when the grantor had capacity
- The attorney has fiduciary duties to act in the grantor's best interests at all times
- Your lawyer will need the original POA document to process the sale — start early