Selling a Parent's House With POA in Maryland

Selling a Parent's House Using Power of Attorney in Maryland: What Families Need to Know

Can you sell your parent's house if you have power of attorney?

The short answer is yes, potentially. In Maryland, a properly executed power of attorney can authorize someone to handle the sale of real estate on another person's behalf. But having a power of attorney doesn't automatically mean you have everything you need to sell the house.

The document must grant the appropriate authority, remain legally effective, and satisfy the requirements involved in transferring real estate.

I've worked with families throughout the Baltimore area who find themselves trying to figure this out, often while juggling their own jobs, families, and responsibilities.

Sometimes a parent is moving into assisted living. Sometimes an older relative no longer wants to maintain a house. Other times, someone simply needs help managing their affairs.

Whatever the circumstances, selling the property can become one more major responsibility for a family member who already has plenty on their plate.

The good news is that with the right planning, the process doesn't necessarily have to be overwhelming.

What Does Power of Attorney Actually Mean When Selling a House?

A power of attorney, commonly called a POA, is a legal document that allows one person to act on behalf of another.

The person granting the authority is called the principal. The person receiving that authority is the agent, sometimes referred to as the attorney-in-fact.

Despite the name, the agent does not have to be an attorney. It might be an adult child, spouse, niece, nephew, or another trusted person.

When it comes to selling a home, the important question isn't simply whether someone has power of attorney.

The question is whether that particular document gives them the legal authority to sell the property.

A healthcare power of attorney, for example, is not the same thing as a financial power of attorney authorizing real estate transactions.

That's why I recommend having a Maryland real estate attorney or title company review the document before getting too far into the listing process.

Can You Sell a Parent's House If They're Living in Assisted Living?

This is a situation families frequently have questions about.

A parent may have moved into an assisted living community, but they still own their house. The family is now responsible for figuring out what to do with the property.

Should they keep it? Rent it? Make repairs? Sell it?

And if selling makes the most sense, who is legally authorized to handle everything?

Moving into assisted living does not automatically transfer ownership of a house or give family members permission to sell it.

If the homeowner has granted someone appropriate authority through a valid power of attorney, that person may be able to manage the transaction on the homeowner's behalf.

It's important to understand that the homeowner generally remains the owner. The agent is acting for them, not selling a house they personally own.

The First Thing I Recommend: Get the Power of Attorney Reviewed

One of the easiest ways to create unnecessary delays is to get a property under contract and only then discover there's a problem with the power-of-attorney paperwork.

Before listing, I like to get the title company involved so we can establish a clear path forward.

That means confirming the document authorizes the necessary real estate activities, identifying who is permitted to sign, and determining whether any additional documentation is needed.

Maryland has statutory forms for personal financial and limited powers of attorney. A limited POA can grant authority for particular transactions, including specified real estate activities.

In certain situations, an attorney may recommend preparing a transaction-specific power of attorney rather than relying on an existing document.

The right approach depends on the circumstances and the legal authority available. A Realtor should coordinate the transaction, but legal questions about the validity or scope of a POA belong with a qualified attorney.

Who Signs the Listing Agreement and Real Estate Contract?

This is another common source of confusion.

When a property is being sold through power of attorney, the homeowner doesn't automatically disappear from the paperwork.

The agent signs in a representative capacity on behalf of the homeowner, using the form of signature approved by the title company or attorney.

For example, paperwork might identify the homeowner as the seller and show that an authorized agent is signing on their behalf.

The important thing is to get that established early, rather than discovering at settlement that documents need to be corrected.

Maryland also has specific requirements concerning powers of attorney used to convey real property, including recording requirements associated with the deed.

Should You Fix Up the House or Sell It As-Is?

This is where the legal side of the transaction meets the practical side of real estate.

A family may have the proper authority to sell the home, but that doesn't mean they have the time, money, or desire to spend months preparing it.

I've seen situations where family members are trying to coordinate cleaning, furniture removal, contractors, maintenance, and property access while continuing to manage their own lives.

And one of the biggest misconceptions I encounter is that a house must be completely updated before it can be sold.

It doesn't.

The real question is whether the improvements will produce enough additional value to justify their cost and the time involved.

For example, imagine a house where the kitchen and bathrooms are dated, the flooring shows wear, and the property needs a thorough cleaning.

There may be several reasonable approaches:

• Sell the property in its current condition.

• Complete basic cleaning and inexpensive improvements.

• Make targeted repairs that improve marketability.

• Undertake a larger renovation if the financial return supports it.

I prefer to evaluate comparable sales, current competition, likely buyer expectations, and estimated improvement costs before recommending a direction.

Sometimes spending a few thousand dollars makes sense. Other times, pricing the home appropriately and allowing the next owner to make the improvements is the better decision.

The goal isn't to make the house perfect. It's to make a smart decision for the homeowner.

What If the Family Members Don't Live Nearby?

Selling a parent's or relative's home can become particularly challenging when the people handling the transaction live outside the immediate area.

Someone needs to coordinate access, meet contractors, review offers, handle inspections, and communicate with the title company.

That doesn't mean every family member needs to be physically present for every step.

When I'm working with someone handling a sale through power of attorney, I try to establish early who has decision-making authority, how they prefer to communicate, and what responsibilities I can help coordinate.

That might include obtaining estimates, arranging property preparation, managing showings, reviewing buyer feedback, or helping the family evaluate offers.

My job isn't just to put the house on the market.

It's to help the people responsible for the transaction understand their options and make informed decisions without creating unnecessary work for them.

What Happens When a Buyer Requests Repairs?

Even when a home is being sold in its current condition, inspection issues may arise depending on the terms of the purchase contract.

A buyer might request repairs, a credit toward closing costs, or another negotiated solution.

Families handling a property through POA may not want to coordinate several contractors, especially if they're already managing other responsibilities.

In some situations, a negotiated credit can be a practical alternative to completing repairs before settlement.

But that doesn't mean every request should automatically be accepted.

I look at the inspection findings, the potential repair costs, the contract terms, the buyer's financing, and the overall transaction before helping the seller evaluate the available options.

A credit also needs to comply with the buyer's loan requirements.

The objective is to find a reasonable solution that protects the homeowner's interests while keeping the transaction moving toward settlement.

Does Power of Attorney Still Work After the Homeowner Dies?

This is an especially important distinction.

A power of attorney generally ends when the person who granted it dies.

If a homeowner passes away before the property is sold, the person holding power of attorney cannot simply continue using that authority to complete the transaction.

The situation may then involve estate administration, a personal representative, and potentially probate proceedings.

The appropriate next steps depend on how the property is titled and the circumstances of the estate.

This is one reason it's important to distinguish selling a home using power of attorney from selling a home through probate. They're related areas of real estate, but they're not the same legal process.

If circumstances change during a transaction, the family should promptly consult the title company and estate attorney.

Five Things I Recommend Before Selling a House Using POA

1. Locate the existing power-of-attorney document. Don't assume that because you can handle banking or medical decisions, you automatically have authority to sell real estate.

2. Have the document reviewed early. A Maryland attorney or title company can help identify potential issues before the home is listed.

3. Understand the property's condition and realistic market value. Decide whether repairs are worthwhile before spending money unnecessarily.

4. Establish one clear communication process. When several relatives are involved, everyone should understand who has authority to make decisions and how information will be shared.

5. Work with professionals familiar with these transactions. Coordinating a POA sale involves more than ordinary listing paperwork. Experience with title requirements, property preparation, family communication, and transaction management can make a meaningful difference.

You Don't Have to Figure Everything Out at Once

If you're responsible for helping a parent or relative sell their house, it's understandable to have questions.

You may not know whether the existing power of attorney is sufficient. You may be unsure whether to renovate, sell as-is, or even where to begin.

And you may be dealing with all of this while balancing your own family and work responsibilities.

My approach is to start by understanding the situation, identifying the available options, and helping you put together a practical plan.

I've spent more than 20 years helping homeowners and families navigate real estate transactions throughout the Baltimore area, including situations involving power of attorney, inherited homes, estate properties, and other major life changes.

If you're trying to figure out what to do with a parent's or relative's home in Maryland, I'm happy to talk through the real estate side of the process and help you understand your next steps.

You don't need to have every answer before making that first call.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.