Legal Question in Real Estate Law in Virginia

Power of Attorney get proceeds from home sale

My son in-laws mother gave power of attorney to her brother, who then sold her home while she was in the hospital and has not give her or her sons any of the proceeds. Is he legally obligation to give her the money from the sale, or is the family out of luck? Are there any legal steps they need to take?


Asked on 12/28/06, 7:17 pm

3 Answers from Attorneys

Michael Hendrickson Law Office Michael E. Hendrickson

Re: Power of Attorney get proceeds from home sale

One might reasonably conclude that it would be very unlkely that the terms of what is presumably a limited POA would permit the mother's brother to retain the proceeds of the sale of the home for his own use. (Otherwise what would be the point of the POA in the first place?)

Consequently, one should be able to assume with confidence that the attorney in fact for the POA(meaning the brother)is indeed legally obligated to turn over the proceeds from the sale of the home to the person so-designated in the POA which is presumably his sister or your son-in-law's mother.

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Answered on 12/28/06, 7:48 pm
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: Power of Attorney get proceeds from home sale

Generally, the person having power of attorney (brother) has only the power to sign documents--not the right to keep the money. If only the mother was on title, the money should have gone into her bank account or as she otherwise instructed.

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Answered on 12/28/06, 9:57 pm
Lawrence Holzman Holzman Law Firm, LLC

Re: Power of Attorney get proceeds from home sale

Unless there are some really odd fact, the son-in-law has a fiduciary obligation to turn the money over to the mother. Probably also had a fiduciary obligation to preserve and not dissipate the assets (why did he sell the house?)

You asked what steps need to be taken:

you need to: 1. retain a lawyer; 2. lawyer needs to demand return of the money; 3. if the money is not returned you need to file a lawsuit.

(note: if you already know that the money is being taken exclusively by the son-in-law you may be better off skipping step 2 because there are things you can do to stop him from spending it if you know where it was deposited --- i.e. you may be able to get a temporary freeze on those accounts (they call this a prejudgment attachment).

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Answered on 12/29/06, 7:07 am


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