Why is a capacity assessment requested for a property sale in the presence of a valid LPA for property and financial affairs?

A property and financial affairs LPA usually authorises the attorney(s) to make decisions about the donor’s property and finances, subject to any restrictions or conditions in the LPA.

Even where the LPA covers all financial matters, solicitors typically request a capacity assessment before selling the donor’s property (including to fund care home fees) to confirm the donor lacks capacity or, if they still have capacity, that they wish to proceed. This is because the sale of a property is a significant financial transaction which may well comprise the majority of the donor’s estate.

If the donor has capacity and no assessment is obtained, a sale completed under the LPA may later be challenged, with potential consequences for both the buyer and solicitor.

A formal court-compliant capacity assessment helps confirm that the LPA can properly be used and supports the legal validity of the transaction.