Applying to the Court of Protection as an attorney wanting to purchase a parents home

ctelcal

Has anyone had any experience of applying to the court of protection to buy a parent’s house ? My Mother is in a care home and has to sell her home to pay for her fees. I have an LPA over property and financial affairs . I have obtained a RICS valuation and I am willing to pay the market price for the property. Thank you.

xylophone

I have an LPA over property and financial affairs . I have obtained a RICS valuation and I am willing to pay the market price for the property. Thank you.

Are you sure that you need to apply to the CoP to do this?

I should think that the "legal advice" would be to get an open market valuation from a member of the RICS?

If you haven't already consulted a solicitor, you might do so now to confirm that you are acting correctly?

https://www.gov.uk/lasting-power-attorney-duties/property-financial-affairs

You’ll need to get legal advice if:

• the sale is below the market value
• you want to buy the property yourself
• you’re giving it to someone else

ctelcal

We only need to apply if my mother does not understand the concept of the arrangements . A Solicitor will be going to see her in the care home to establish this . 

GDB2222

My understanding is that going to the COP is a slow and expensive process. Best avoided, if possible. I understand the emotional attachment to the property, but you’ll have to decide whether it’s worth it. I assume that you and your mother would need separate representation before the court, so you can see how the costs can mount up.

 (My experience is not with COP but with trust funds - so, similar but not the same.)

This could take quite a while, so how would you pay the fees in the meantime?

Personally, I’d keep my fingers crossed that the solicitor is satisfied that your mother is able to consent. The bar is surprisingly low. Even someone incapable of managing their affairs on a day to day basis can still understand what’s involved here and  retain the information for the time required to give consent. Indeed, it’s very likely that your mother will be delighted.

One last question. Are there other beneficiaries of your mother’s will who might feel aggrieved?

bouicca21

I thought the whole point of having a PoA Was to avoid having to deal with the Court of Protection.  Even a few years ago when they had to be involved in my mother’s affairs, they were slow and expensive and my understanding is that things have got worse.

Browntoa

I go with the above , as long as you have a proper paper trail for everything , maybe get a 2nd rcis valuation and show the entire amount entering your mother's bank account and remaining I would say it would pass scrutiny if challenged so no need to approach the cop

Local councils will look for possible deprivation of assets as she is paying for her own care if any of the money from the house sale is moved or it's sold for a price below market value

greatcrested

bouicca21 said:

I thought the whole point of having a PoA Was to avoid having to deal with the Court of Protection. 

Yes but the OP is considering acting in a way that is a potential conflict of interest. An attorney who personally benefits from use of his authority to the detriment of the donor could be in a serious position. So OP is right to be cautious.

Having said that, provided there is clear evidence that the OP has paid market price (and mother is not being swindled) I think it's fine and no need for CofP. OP said he has RICS valuation.

Could always get a 2nd RICS valuation as belt and braces.

xylophone

I really can't see that an application to the CoP would be necessary.
If  the OP's solicitor  is  in agreement that the property needs to be sold to pay the fees and that the OP has obtained an open market value from a properly qualified person, where can the objection be?

GDB2222

xylophone said:

I really can't see that an application to the CoP would be necessary.
If  the OP's solicitor  is  in agreement that the property needs to be sold to pay the fees and that the OP has obtained an open market value from a properly qualified person, where can the objection be?

Unless you expose the property to the market, you don't really know what market price is. 

ctelcal

When building a conservatory on the rear of a house does the 20m or less rule apply to the highway at the rear of the house?

greatcrested

ctelcal said:

When building a conservatory on the rear of a house does the 20m or less rule apply to the highway at the rear of the house?

what on earth is the relevance of this to the OP's problem?