Legal Question in Elder Law in California

If you have a properly granted Durable Power of Attorney, it survives them going into a rest home. It is unclear, however, whether you can rent the house. I don't understand what "The house is not bought yet" means. Any POA only gives you the power to do what the person could do themselves. So if you mean the person who gave the DPOA does not own the house, then they cannot rent it out, and therefore neither can you. If the person who gave the DPOA is a tenant, then you might be able to sublet it, but that would depend on the lease, rental agreement, or other arrangement with the actual owner of the property. Bottom Line: the DPOA gives you the ability to do anything the person who gave it to you could legally do, but ONLY what they have a legal right to do.

I imagine that you mean that your friend bought a home, but that the home loan isn't fully paid off yet. If that's the case, and if your friend did not transfer the property to a trust in order to avoid probate on his death, then you, as agent under the DPOA, can execute a lease to rent the property out to tenants.

If, however, the property is in a trust, only the trustee (or successor trustee if your friend is incapacitated) can sign a lease.