Selling a parent's Toronto house to a builder under a power of attorney

Key takeaways

• The authority to sign for a parent comes from a continuing power of attorney for property, a court order or a statutory guardianship held by the Public Guardian and Trustee.
• A continuing power of attorney for property must be signed in front of two witnesses, and the attorney, the attorney's spouse and the grantor's children cannot be witnesses.
• A parent can still give a power of attorney while able to understand what it does, even if they can no longer manage their property.
• Under section 38 of the Substitute Decisions Act, an attorney selling for an incapable parent must act for the parent's benefit, keep accounts and check the will before selling.
• A house that the will leaves to one person cannot be sold by the attorney, unless the sale is needed to meet the attorney's duties.
• A parent in a care home for six months or more of the year can be exempt from Toronto's Vacant Home Tax for up to two consecutive years, if the declaration is filed.

Who can sign for a parent

A family often reaches this point in the same way. A parent moves into a care home, or stays at home with help, and the house they own is empty or too much to manage. A builder's letter arrives, or a child reads about multiplexes and wonders what the lot could hold. Then comes the first legal question: who can sign?

Being a son or daughter gives no authority to sell. Ontario's page on powers of attorney, updated October 14, 2025, says that without an attorney for property, family members, including a spouse, cannot automatically step in to make financial decisions, and may have to go to court to become a guardian. The authority to sell a parent's house comes from one of three places: a continuing power of attorney for property that the parent signed, a guardian of property appointed by the court, or a statutory guardianship held by the Public Guardian and Trustee. A parent who is still capable signs for themself.

The rules below come from Ontario's Substitute Decisions Act, 1992, as consolidated on e-Laws from April 1, 2024, from two Government of Ontario pages and from the City of Toronto, all read on November 11, 2026. I am a real estate sales representative and I do not give legal advice. Your lawyer reads your parent's document and tells you what it allows.

What a continuing power of attorney for property is

A power of attorney is a document in which a person, called the grantor, names someone they trust, called the attorney, to make decisions for them. The attorney does not have to be a lawyer. Ontario's page lists the two kinds: one for personal care, which covers health care and housing, and one for property, which covers money and property. The property kind is the one that matters for a sale. The page lists "maintaining or selling your house" among the decisions an attorney for property can make.

The document has to be a continuing one. Subsection 7(1) of the Act says a power of attorney for property is a continuing one if it states that it is, or if it expresses the intention that the authority may be used during the grantor's incapacity to manage property. A document without that intention stops working at the moment the parent can no longer manage their affairs.

Subsection 7(2) says the continuing power of attorney may authorize the attorney to do anything with the property that the grantor could do if capable, except make a will. Subsection 7(6) says it is subject to any conditions and restrictions written in the document. So the first step on any sale is to read the whole document. A parent may have limited the attorney to the bank accounts, named two children who must act together, or set a date or an event before it starts.

Making one while your parent is still able

A parent who still understands what the document does can sign one now. Ontario's page says the person must be mentally capable and at least 18 years old. Section 8 of the Act lists what the person must know and appreciate to be capable of giving a continuing power of attorney, including:

• what property they have and its approximate value,
• the obligations they owe to their dependants,
• that the attorney will be able to do anything with the property that they could do, except make a will,
• that the attorney must account for their dealings with the property,
• that they can revoke the document while capable,
• that the property may lose value unless the attorney manages it with care, and
• that the attorney could misuse the authority.

Subsection 9(1) matters to a family whose parent already has a diagnosis. It says a continuing power of attorney is valid if the grantor was capable of giving it at the time of signing, even if they were already incapable of managing property. Subsection 9(2) says it stays valid when the grantor later loses that capacity. Capacity to give the document and capacity to manage property are two different tests, so ask a lawyer before assuming it is too late.

Subsection 10(1) says the document must be signed in the presence of two witnesses, and each witness signs it. Subsection 10(2) lists the people who cannot be witnesses: the attorney, the attorney's spouse or partner, the grantor's spouse or partner, a child of the grantor, a person whose property is under guardianship, and anyone under 18. Subsection 10(4) says a document that breaks these rules is not effective, unless a court declares it effective in the grantor's interest. So the child who will sell the house cannot also be one of the two witnesses.

Ontario's page says the document can be made for free with the Public Guardian and Trustee's kit or with a lawyer, and it says to talk to a lawyer when the affairs are complicated, for example when the person owns property in another province or country. The Office of the Public Guardian and Trustee page, updated September 15, 2026, points to that free kit on Publications Ontario.

When the document starts to work

Ontario's page says an attorney for property can start making decisions at once, unless the document states otherwise, and suggests adding a line saying the attorney may act only if the grantor becomes mentally incapable. Subsection 7(7) of the Act allows the document to start on a date or when an event happens.

If the document says it starts on incapacity but gives no way to decide that, subsection 9(3) fills the gap. The document takes effect when the attorney is notified, in the prescribed form, by an assessor who has assessed the grantor and found them incapable of managing property, or when the attorney is notified that a certificate of incapacity has been issued under the Mental Health Act. Section 6 gives the test for incapacity: the person cannot understand the information relevant to a decision about their property, or cannot appreciate the reasonably foreseeable consequences of a decision or of not deciding.

For a sale, this means a builder, a brokerage and the closing lawyer will want to see both the document and, where it depends on incapacity, the assessor's form. Get those papers in order before the house is shown.

What the attorney must do when selling the house

Once the parent is incapable, or the attorney has reasonable grounds to believe so, section 38 of the Act applies most of a guardian's duties to the attorney. These are the ones that shape a sale.

Act for the parent's benefit. Subsection 32(1) says the attorney is a fiduciary, a person who holds power for someone else, and must act diligently, with honesty and integrity and in good faith, for the incapable person's benefit. Subsection 32(1.1) adds that when a decision affects the person's comfort or well-being, the attorney weighs that effect. Selling the family home for the highest price while the parent could have stayed is a decision about the parent's life, so the care plan comes first.

Involve the parent and the family. Subsection 32(2) says the attorney explains their powers and duties to the parent. Subsection 32(3) says the attorney encourages the parent to take part in the decision as far as they are able. Subsection 32(5) says the attorney consults from time to time with supportive family members and friends who are in regular contact, and with the people who give the parent care.

Find and read the will. Section 33.1 says a guardian makes reasonable efforts to find out whether there is a will and what it says. Section 35.1 is the rule that stops some sales: a guardian shall not dispose of property that the guardian knows is subject to a specific gift in the will. If the will leaves the house to one child, the attorney cannot sell it, except under clause 35.1(3)(a), where the sale is necessary to meet the attorney's duties, such as paying for the parent's care under section 37. When a sale does go ahead, section 36 says the person named in the will is entitled to the equivalent of their right in the proceeds, from the rest of the estate, unless the will says otherwise.

Keep accounts. Subsection 32(6) says the attorney keeps accounts of all transactions involving the property, in the form the regulations set. Section 42 lets the court order those accounts to be passed, which means examined in court, on the application of the grantor, a dependant, the Public Guardian and Trustee, a judgment creditor or another person with the court's leave. On a house sale, the records are the listing agreement, each offer, the agreement of purchase and sale, the closing statement, the lawyer's report and the bank statement showing where the money went.

Pay what is required first. Subsection 37(1) says the attorney makes the expenditures that are reasonably necessary for the person's support, education and care, then for their dependants, then for their other legal obligations. The money from the house goes to those uses before any gift. Subsection 37(4) allows gifts or loans to friends and relatives only when there is reason to believe, from intentions the parent expressed while capable, that the parent would make them. A child who sells the house and then pays themself from the proceeds has to show that it was compensation under section 40, or a gift the parent would have made.

Answer for a breach. Subsection 33(1) says the attorney is liable for damages resulting from a breach of duty. Subsection 33(2) lets the court relieve an attorney who acted honestly, reasonably and diligently. Subsection 32(7) says an unpaid attorney must show the care, diligence and skill that a person of ordinary prudence uses in their own affairs. In my view, getting more than one builder's number and an open market opinion before accepting an offer is one way to show that care. The guide on how builders price land explains why two builders can offer two different prices for one lot.

If there is no power of attorney

A parent may never have signed one. Ontario's page says the government may then have to make decisions through the Office of the Public Guardian and Trustee, but only as a last resort, and that family members may be able to take over after. The Act gives two routes.

The first is the court. Subsection 22(1) says the court may, on anyone's application, appoint a guardian of property for a person who is incapable of managing property, when decisions have to be made on their behalf. Subsection 22(3) says the court shall not appoint a guardian when the need will be met in a way that is less restrictive of the person's rights and does not need a finding of incapacity. Section 24 says a person who is paid to give the incapable person health care or residential, social, training or support services cannot be appointed, unless they are the person's spouse, partner or relative. Section 31 gives a court-appointed guardian the same powers an attorney has, except making a will, and the court can add conditions.

The second route is a statutory guardianship. Section 16 lets a person ask an assessor to assess someone's capacity so that the Public Guardian and Trustee can become their statutory guardian of property. The request has to state that the person asking has reason to believe the other person may be incapable, has made reasonable inquiries and knows of no attorney under a continuing power of attorney covering all of the property, and knows of no spouse, partner or relative who intends to apply to the court. Subsection 16(5) says the Public Guardian and Trustee becomes the statutory guardian as soon as it receives the assessor's certificate. The Office of the Public Guardian and Trustee page says it makes financial decisions for adults found mentally incapable. Section 17 lets the parent's spouse, partner or a relative apply to the Public Guardian and Trustee to replace it, with a management plan for the property, and subsection 17(5) says the parent's current wishes and the closeness of the relationship are considered.

Both routes add steps before anyone can sign. A builder's offer carries a closing date, so settle the authority first and present the lot second.

When the authority ends

Subsection 12(1) lists when a continuing power of attorney ends: when the attorney dies, becomes incapable or resigns and no substitute can act; when the court appoints a guardian of property under section 22; when the grantor signs a new continuing power of attorney, unless they said there would be more than one; when the document is revoked; and when the grantor dies. Subsection 12(2) says a revocation is in writing and signed the same way as the document itself, with two witnesses.

Death changes who signs. From that day the estate trustee named in the will acts for the estate, under the rules in the guide to selling an inherited house. A sale that was agreed but not closed before the death goes to the estate's lawyer. Subsection 13(1) protects a buyer, and the attorney, who acted in good faith without knowing the document had ended.

The house, the care home and the Vacant Home Tax

While a parent is in care, the house is often empty. The City of Toronto's Vacant Home Tax page, modified November 2, 2026, says every residential owner must declare the property's occupancy status each year, and the page now says to declare the 2026 status by April 30, 2027. The rate is 3 percent of the property's Current Value Assessment, the value the province's assessment agency sets for property tax. A house empty for six months or more in a year is vacant, and so is a house with no declaration filed.

The page says the property owner or someone authorized to act for them can submit the declaration, so the attorney files it. The exemption that fits is "Principal resident is in care": the resident was in a hospital, long term care home or supportive care facility for at least six months of the taxation year. It may be claimed for up to two consecutive taxation years, with a signed letter from the facility on its letterhead and proof that the house was the resident's principal residence before they entered care. The page says a false declaration or a failure to provide requested information may bring a fine of up to $10,000 plus the tax, and it asks owners to keep the records for at least three years.

After the two years, the exemption runs out while the house still stands empty. That date belongs in the family's timeline. My post on the Vacant Home Tax and an empty estate house goes through each exemption and the declaration itself.

The sale itself

Once the authority is settled, the sale runs like any other sale to a builder, with the attorney acting in the owner's place. A family buyer prices the house. A builder prices the lot: its width and depth, its zoning and how many homes it could hold once the old house comes down. The lot check guide shows how to read the City's maps for your parent's street. If the house is rented, the guide to selling a house with tenants sets out the notice rules.

Three points are particular to a sale under a power of attorney:

• Expect the brokerage, the builder's lawyer and the closing lawyer to ask for a copy of the document, and, where it depends on incapacity, the assessor's form. Ontario's page warns that the land registration system does not accept a power of attorney that contains personal information, such as details from government identification, bank accounts, passports or birth certificates. Have your lawyer check the form of the document before any offer depends on it.
• Decide where the money goes before closing. Section 37 puts the parent's support and care first. The closing funds go to the parent's account, under the attorney's control, with the records kept for the accounts.
• Ask an accountant about the tax on the sale. The guide to taxes and costs when you sell explains the principal residence exemption and how the exempt years are counted.

Questions to ask before you sell for a parent

• Is the document a continuing power of attorney for property, and is it in effect today?
• Who witnessed it, and are the witnesses allowed under subsection 10(2)?
• What does the will say about the house, and does section 35.1 stop the sale?
• Who else must I consult, and how will I show that I did?
• Which Vacant Home Tax year is the house in, and who files the declaration?

My work on a sale is the zoning review, the presentation to builders and the comparison of offers. The authority to sign, and what the proceeds may be used for, come from your lawyer. To talk through a parent's house before you meet the lawyer, use the contact page. Before you ask what the house is worth, ask the question the law asks first: who has the right to sell it?

Frequently asked questions

Can I sell my parent's house in Toronto with a power of attorney?

Yes, when the document is a continuing power of attorney for property and it is in effect. Ontario's page on powers of attorney lists maintaining or selling the house among the decisions an attorney for property can make. Subsection 7(2) of the Substitute Decisions Act says the document may authorize the attorney to do anything with the property that the grantor could do if capable, except make a will. Your lawyer reads the document for any limit.

What is a continuing power of attorney for property in Ontario?

It is a document in which a person names someone to make decisions about their money and property, and that keeps working after the person becomes incapable. Subsection 7(1) of Ontario's Substitute Decisions Act says a power of attorney for property is continuing when it says so, or when it shows the intention that the attorney may act during the grantor's incapacity to manage property. A power of attorney without that intention stops when the grantor becomes incapable.

Can my parent still sign a power of attorney after a dementia diagnosis?

Sometimes. Subsection 9(1) of Ontario's Substitute Decisions Act says a continuing power of attorney is valid if the grantor was capable of giving it when they signed, even if they were already incapable of managing property. Section 8 lists what the person must know, such as what property they have and its approximate value, and that the attorney could misuse the authority. A lawyer, and where needed a capacity assessor, judges that.

Who can witness a power of attorney for property in Ontario?

Two witnesses must watch the grantor sign, and each must sign as a witness, under subsection 10(1) of Ontario's Substitute Decisions Act. Subsection 10(2) says these people cannot be witnesses: the attorney, the attorney's spouse or partner, the grantor's spouse or partner, a child of the grantor, a person whose property is under guardianship, and anyone under 18. A document witnessed by the wrong person is not effective unless a court declares it so.

When does a power of attorney for property take effect?

Ontario's page on powers of attorney says the attorney can start making decisions at once, unless the document says otherwise. Many people write that it starts only when they become incapable. Subsection 9(3) of the Substitute Decisions Act says that when the document gives no method for deciding that, it takes effect when the attorney gets an assessor's form finding the grantor incapable, or notice of a certificate of incapacity under the Mental Health Act.

What must an attorney for property do when selling an incapable parent's house?

Section 38 of Ontario's Substitute Decisions Act applies the duties of a guardian to an attorney once the grantor is incapable, or the attorney has reasonable grounds to believe so. Section 32 says the attorney acts for the person's benefit, with honesty and in good faith, explains the decision to the parent, encourages them to take part, consults supportive family and the people giving care, and keeps accounts of every transaction. Section 33 makes the attorney liable for a breach.

Can an attorney sell a house that my parent's will leaves to one child?

Only in limited cases. Subsection 35.1(1) of Ontario's Substitute Decisions Act says a guardian shall not dispose of property that the guardian knows is subject to a specific gift in the will, and section 38 applies that rule to an attorney for an incapable grantor. Clause 35.1(3)(a) allows the sale when it is necessary to meet the attorney's duties, such as paying for care. Section 36 then gives the named person the equivalent value from the proceeds.

What happens if my parent has no power of attorney and cannot manage their property?

Ontario's page on powers of attorney says family members, including a spouse, cannot automatically step in, and may have to go to court to become a guardian. Section 22 of the Substitute Decisions Act lets the court appoint a guardian of property, but subsection 22(3) says it will not do so when a less restrictive course meets the need. Section 16 lets an assessor's certificate make the Public Guardian and Trustee the statutory guardian, which a spouse or relative can apply to replace under section 17.

Can I be paid for acting as my parent's attorney for property?

Yes, within limits. Subsection 40(1) of Ontario's Substitute Decisions Act says an attorney under a continuing power of attorney may take annual compensation from the property under the prescribed fee scale, and subsection 40(2) says it may be taken monthly, quarterly or annually. Subsection 40(4) says the document itself can set different terms. An attorney who takes no compensation is held to the care of a prudent person in their own affairs, under subsection 32(7).

Can the court check what I did with the money from my parent's house?

Yes. Subsection 42(1) of Ontario's Substitute Decisions Act lets the court order that all or part of an attorney's accounts be passed, which means reviewed in court. The grantor, the attorney, a dependant, the Public Guardian and Trustee or a judgment creditor can apply. Subsection 32(6) already requires the attorney to keep accounts of every transaction, so keep the listing agreement, the offers, the closing statement and the bank records together.

Does Toronto's Vacant Home Tax apply while my parent is in a care home?

A declaration is still due, and an exemption can apply. The City of Toronto's Vacant Home Tax page, modified November 2, 2026, lists a principal resident in care exemption for a resident who was in a hospital, long term care home or supportive care facility for at least six months of the taxation year, for up to two consecutive years. The City asks for a signed letter from the facility on letterhead and proof the house was the parent's principal residence. Declare 2026 by April 30, 2027.

Does a power of attorney end when my parent dies?

Yes. Clause 12(1)(f) of Ontario's Substitute Decisions Act says a continuing power of attorney is terminated when the grantor dies. From that moment the attorney has no authority over the house, and the estate trustee named in the will takes over, under the rules in the guide on selling an inherited house. Subsection 13(1) protects anyone who acted in good faith without knowing the document had ended.

Will the land registry accept my parent's power of attorney?

Ontario's page on powers of attorney says the Ontario land registration system does not accept powers of attorney that contain personal information, such as copies or details from government identification, bank accounts, passports or birth certificates. Have your lawyer read the document before any builder sees the house, so a problem with the form is found before an offer depends on it. The closing lawyer registers the transfer under the attorney's authority.

Sources

1. Substitute Decisions Act, 1992, S.O. 1992, c. 30. Government of Ontario, e-Laws. Consolidation period from April 1, 2024. Last amendment 2023, c. 9, Sched. 35. Accessed November 11, 2026.
2. Make a power of attorney. Government of Ontario. Updated October 14, 2025. Accessed November 11, 2026.
3. Office of the Public Guardian and Trustee. Government of Ontario. Updated September 15, 2026. Accessed November 11, 2026.
4. Vacant Home Tax. City of Toronto. Modified November 2, 2026. Accessed November 11, 2026.

Planning and development potential is property-specific and subject to zoning, approvals, site conditions, municipal review and other due diligence. This guide gives general information. For legal, tax or financial advice, ask your own lawyer and accountant.