Can an attorney buy the donor’s property under an LPA?

A Property and Financial Affairs Lasting Power of Attorney (LPA) gives an attorney wide powers to manage the donor’s assets. These powers can include selling houses, managing investments, and dealing with bank accounts. However, a very common question arises: can an attorney buy the donor’s property themselves?

The short answer is that it is possible, but only with strict safeguards, and often with approval from the Court of Protection.

The risk of conflict of interest

When an attorney purchases the donor’s property, there is an obvious conflict of interest. An attorney must always act in the best interests of the donor. If the attorney stands to benefit personally from the transaction, it raises concerns about whether the donor is getting fair value.

The Mental Capacity Act 2005 makes it clear that attorneys must not take advantage of their position. The role exists to protect the donor, not to give the attorney a financial opportunity.

Market value and transparency

If an attorney does want to buy the donor’s home or other property, the transaction must be carried out at full market value. Independent valuations should be obtained to show that the donor is not losing out.

Even if the donor has capacity and fully agrees, attorneys should keep clear written records of the donor’s consent and the professional valuations relied upon. If the donor lacks capacity, the situation becomes far more complex.

When is Court of Protection approval required?

The general position is that an attorney cannot sell property to themselves without obtaining authority from the Court of Protection.

The Court will expect evidence of:

• The donor’s financial situation and ongoing needs
• A professional valuation of the property
• The proposed purchase price
• Why the sale is in the donor’s best interests

Without Court approval, such a transaction is likely to be set aside. Attorneys who proceed without authority may face investigation by the Office of the Public Guardian and even personal liability.

Guidance on this can be found in the Court of Protection practice notes.

A practical example

Imagine a situation where a donor owns a bungalow worth £200,000. The attorney, who is also the donor’s daughter, would like to buy the property to keep it in the family.

If the donor still has capacity, she can agree to the sale at full market value, provided that independent advice is taken and everything is properly documented.

If, however, the donor lacks capacity, the daughter cannot simply purchase the bungalow using her attorney powers. Even if she offers the full £200,000, Court of Protection approval is required because of the conflict of interest. The Court will review whether the sale is in the donor’s best interests, for example, if the funds released are needed to pay for care.

This safeguard ensures that the donor is protected and that no suspicion of self-dealing can arise.

Why these safeguards exist

The rules may feel restrictive, but they are designed to protect some of the most vulnerable people in society. Attorneys must be beyond reproach in handling the donor’s affairs. A property is usually the donor’s most valuable asset, and the law quite rightly imposes strong safeguards when there is a risk of personal gain.

The Office of the Public Guardian’s guidance reminds attorneys that they must always act with honesty, integrity, and transparency. Obtaining Court approval where necessary is not just a legal formality. It is a vital protection for both the donor and the attorney.

Final thoughts

So the question “can an attorney buy a donor’s property” is not impossible, but it is far from straightforward. The golden rule is that the donor’s best interests come first. Attorneys should never assume they can proceed without proper authority, and they should always seek professional valuations and legal advice before taking any steps.

By following the correct process and, where necessary, applying to the Court of Protection, attorneys can ensure that any transaction is lawful, transparent, and ultimately protective of the donor’s rights.

Speak to our experts today

Navigating the rules around Lasting Powers of Attorney and property transactions can be complex. Our specialist solicitors provide clear, assured guidance to help you make informed decisions and protect the donor’s best interests.

To discuss your situation in confidence, please contact our team and we will be pleased to assist you.