This guide explains how powers of attorney work for property transactions and what HM Land Registry needs when registering property transfers. It covers different types of powers of attorney, how they're created and used, and special rules for gifts and undervalued sales.
What is a power of attorney?
A power of attorney is a legal document that allows someone you trust (called an "attorney") to act on your behalf. The person making the document is called the "donor".
You might need a power of attorney if:
- you become ill or injured
- you lose mental capacity
- you're unable to handle your affairs temporarily
The attorney can make decisions about your health and welfare, or your property and money, permanently or temporarily - depending on what the document allows.
Types of power of attorney
There are three main types of power of attorney:
| Type | Duration | What it does | When it can be used | Note |
|---|---|---|---|---|
| General Power of Attorney (GPA) | Typically temporary | Gives broad authority to act on your behalf | Only while you have mental capacity | You don’t have to register a GPA |
| Enduring Power of Attorney (EPA) | Usually permanent | Manages property and financial affairs | Can continue if you lose mental capacity | Must be registered No new EPAs can be made |
| Lasting Power of Attorney (LPA) | Usually permanent | Two types available to manage property and finances or health and welfare | Can be used before and after losing mental capacity | Replaces EPAs Must be registered immediately |
Key differences:
- General powers stop working if you lose mental capacity
- Enduring powers (EPAs) continue working if already registered, but new EPAs cannot be created any more
- Lasting powers (LPAs) must be registered with the Office of the Public Guardian
Creating and using a power of attorney
Who can create one:
- You must be over 18
- You must have mental capacity when making the document
How they work:
- Attorneys must act in your best interests
- You can add restrictions to limit what they can do
- All powers of attorney end when you die
- You may cancel a power of attorney anytime while you have mental capacity
Gifts and undervalued sales
What attorneys cannot usually do:
- Give your property to themselves or others as gifts
- Sell your property for less than market value
Limited exceptions:
Attorneys can make gifts only in specific circumstances under the Mental Capacity Act 2005, for example:
- to charities you supported
- to family members in certain situations
What HM Land Registry needs:
When someone wants to transfer property for free or below market value, we need proof that the transaction is allowed.
If the donor still has mental capacity:
- the donor themselves must sign the transfer deed
If the donor lacks mental capacity:
- a Court of Protection order authorising the transaction
More information
For detailed guidance on property transactions involving powers of attorney, see our Practice Guide 9: powers of attorney and registered land.
For gift-giving guidance, visit the Office of the Public Guardian.
This guidance helps ensure property transactions using powers of attorney are properly authorised and protect vulnerable people from financial abuse.
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