When a parent loses mental capacity and the family home has to be sold, perhaps to pay for nursing home care or because the flat is no longer safe, someone has to sign the documents on their behalf. If you need to sell a parent’s house with an LPA (Lasting Power of Attorney) or under a court-appointed deputyship, the process is possible, but it is more careful and slower than an ordinary sale. Buyers’ lawyers, banks, HDB and CPF Board will all want proof that you have the legal authority to sell.
This guide focuses on the sale itself: what a donee or deputy can do, when you may need to go back to court, and how the proceeds must be handled. It is general information, not legal advice. Property sales under the Mental Capacity Act are a specialist area, and you should work with a lawyer and confirm current requirements with the Office of the Public Guardian (OPG), the Family Justice Courts, HDB and CPF Board.
First, Check Which Authority You Actually Hold
Everything depends on the document you have and what it says.
- An LPA donee is someone your parent appointed, while they still had capacity, to make decisions for them later. An LPA only works for property if it grants powers over property and affairs, it has been registered with the OPG, and your parent has now lost capacity for the relevant decisions. A personal welfare LPA alone does not let you sell a home.
- A deputy is appointed by the court when there is no LPA, or the LPA does not cover what is needed. The court order sets out exactly what the deputy may do. Some orders are broad; others are limited to things like managing bank accounts and paying bills.
An LPA may contain restrictions or conditions the donor wrote in, and a deputyship order may list specific powers or expressly exclude dealing with real property. If you are one of two or more donees or deputies, check whether you must act jointly (all of you sign) or jointly and severally (any of you may sign). If you are not yet sure which route applies, our guides on becoming a donee under an LPA and applying for a deputyship when there is no LPA explain the instruments themselves.
When the Court Needs to Be Involved
Many families assume a registered LPA or a deputyship is automatically enough to sell a flat. Often it is, but not always. You may need to apply to the Family Justice Courts for a specific order or for your powers to be expanded where, for example:
- the deputyship order does not expressly authorise selling or disposing of property
- the LPA restricts dealing with the home, or is unclear about it
- you, as donee or deputy, want to buy the property yourself, or sell it to a relative, which creates a conflict of interest
- the sale involves a gift, a below-market price, or anything that benefits someone other than your parent
- family members disagree about whether the sale is in your parent’s best interests
A lawyer experienced in mental capacity matters can tell you whether your existing authority is sufficient or whether an application is needed. Court timelines vary, so factor this in before you sign any option to purchase or commit to a new care arrangement that depends on the sale money.
Comparing the Routes to a Sale
| Situation | Who signs the sale documents | Court step likely? | Key thing to check |
|---|---|---|---|
| Registered LPA with property and affairs powers, no restriction on property | The donee (or donees, as the LPA requires) | Usually not, but confirm with a lawyer | Parent has lost capacity; LPA is registered; no conflict of interest |
| Deputyship order that expressly covers selling property | The deputy | Usually not for the sale itself | The order’s exact wording on property and any reporting duties |
| Deputyship order that is silent or limited | The deputy, only after further authority | Yes, apply to vary or expand powers | What extra power to ask for, and supporting evidence |
| No LPA and no deputyship | No one can sign for the parent | Yes, a deputyship application comes first | Medical evidence of lost capacity |
The Best Interests Test and Your Duties
Under the Mental Capacity Act, a donee or deputy must act in the person’s best interests, and must consider their past and present wishes, feelings and values. Selling a home is a major decision, so it helps to show your reasoning in writing. Questions worth recording:
- Why is the sale needed now? For example, care costs, an unsafe flat, or a long-term move to a nursing home.
- Were cheaper alternatives considered, such as renting out the flat or renting out a room?
- Did your parent ever express a wish about the home, for instance, that it should go to a particular person?
- Have other family members been consulted?
You must not use the sale to benefit yourself. Keep receipts, valuations, letters and a simple diary of decisions. Deputies in particular may need to account to the OPG, and good records protect you if anyone later questions the sale.
Practical Steps for an HDB Flat or Private Property
The mechanics of the sale are similar to a normal transaction, with extra paperwork.
- Get a valuation and appoint a lawyer. A property agent can help with marketing, but tell them upfront that you are selling as donee or deputy, since buyers’ lawyers will request the LPA or court order.
- For an HDB flat, check the Minimum Occupation Period has been met and follow the resale process on the HDB Flat Portal. HDB may ask for the registered LPA or the court order and supporting documents. Contact HDB early to confirm what they need from you as the person acting for the owner.
- For private property, the conveyancing lawyer will handle the sale and purchase agreement and lodge documents with the Singapore Land Authority, which will also want to see your authority.
- Clear the mortgage. If there is an outstanding loan, contact the bank. Banks have their own processes for dealing with donees and deputies. Our guide on selling a home during a mortgage lock-in covers penalties that may apply.
- Joint owners. If your parent owns the home jointly with a spouse or child, the other owner must also sign, and the form of ownership (joint tenancy or tenancy in common) affects what happens to each share. Get legal advice on this point.
What Happens to the Money
The sale proceeds belong to your parent, not to the family. Typically:
- CPF refund. If CPF savings were used to buy the property, the CPF portion (principal plus accrued interest) is refunded to your parent’s CPF account first, as with any sale. Check details with CPF Board.
- Cash balance. The remaining money should go into an account in your parent’s name, or one set up as the court order or LPA directs. Do not mix it with your own funds.
- Use only for your parent. Spend it on care, housing and their needs, and keep records. A deputy may have specific limits on spending or investing and may need court approval for larger decisions.
- Taxes. Seller’s Stamp Duty may apply to properties held for a short period; check with IRAS.
Talking It Through With Family
A sale is often the moment when sibling tensions surface. Share the reasons, the valuation and the plan for the money openly, ideally in writing. If your parent can still take part in conversations, involve them as far as possible, even if they can no longer make the legal decision. If you are reading this before a parent loses capacity, our article on how to talk to your parents about wills, LPAs and their wishes can help you plan ahead, including whether the LPA should specifically address selling the home.
Rules, forms and procedures can change, so always confirm current requirements with the OPG, the Family Justice Courts, HDB, CPF Board and a qualified lawyer before signing anything.
Official sources: Ministry of Social and Family Development (MSF)