Selling a house on the instructions of the owner's attorney under a registered LPA (Code 3.1)
Iris Penhale, aged 89, has advanced dementia and lacks capacity to manage her property and affairs. Her daughter, Morwenna, is her attorney under a registered lasting power of attorney for property and financial affairs that contains no restrictions. Morwenna instructs a firm to sell her mother's house to pay care home fees. The firm has seen the registered LPA, and nothing suggests that Morwenna is acting other than in her mother's interests.
Which of the following best describes whether the firm may act on the sale?
Choose one answer to see the reasoning.
Worked answer
Correct answer A: It may act on Morwenna's instructions, because she is properly authorised to instruct on her mother's behalf, and Mrs Penhale remains the client.
THE RULE TO REMEMBER
A solicitor may act on instructions from someone properly authorised to give them, such as an attorney under a registered LPA, but must still protect the incapacitated client's best interests.
Selling a house on the instructions of the owner's attorney under a registered LPA (Code 3.1)
Paragraph 3.1 of the Code requires a solicitor to act only on instructions from the client 'or from someone properly authorised to provide instructions on their behalf'. Mrs Penhale lacks capacity, but Morwenna holds a registered lasting power of attorney for property and financial affairs with no restrictions. That gives her authority to deal with her mother's property, including selling the house to pay for care. The firm has checked the registered LPA and has no reason to suspect that the instructions do not reflect Mrs Penhale's interests. Mrs Penhale remains the client, so the firm acts for her through her attorney. Mrs Penhale remains the client, so the firm must act in her best interests (Principle 7). Under para 3.1, if it has reason to suspect that the attorney's instructions do not represent her wishes or interests, it must not act until satisfied that they do. If concerns arose, such as the proceeds being diverted to the attorney, the firm would have to act on them.
Why B is wrong: Para 3.1 expressly allows instructions from someone properly authorised to give them on the client's behalf, such as an attorney acting within an LPA.
Why C is wrong: A deputy is not needed where a valid registered LPA for property and financial affairs already gives the attorney authority.
Why D is wrong: A client who lacks capacity cannot validly sign; the attorney signs within the scope of the power.
Why E is wrong: The authority to instruct belongs to the attorney under the LPA, not to the family collectively.
A little more practice done.
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