LPA & Deputies - Powers, Duties & Ethical Challenges in Property Transactions

Introduction

This virtual classroom seminar provides property lawyers with a clear understanding of the powers and duties of attorneys and deputies when dealing with property transactions for individuals who lack mental capacity.

It will cover the legal framework under the Mental Capacity Act 2005, practical steps for compliance, and ethical considerations to ensure best interests are protected.

The course will also explore common pitfalls, conflict scenarios, and how to manage risks such as undue influence and fraud.

Learning objectives:

• Explain the scope and limits of authority under Property and Financial Affairs LPAs and Deputyship Orders
• Identify when additional Court of Protection authority is required
• Apply the best interests principle in property transactions
• Recognise and manage ethical and professional conduct issues, including conflicts of interest and undue influence
• Implement practical steps to ensure compliance and avoid common mistakes

What You Will Learn

This live and interactive course will cover the following:

• Introduction
• Why capacity issues matter in property law
• Overview of the Mental Capacity Act 2005 and Code of Practice
• Attorneys under a Property and Financial Affairs LPA
• When authority begins
• Scope of powers and restrictions
• Duties: best interests, record-keeping, avoiding conflicts
• Property transactions: sale, purchase, lease
• Practical tips: checking LPA wording, certified copies, conflicts
• Deputies Appointed by the Court of Protection
• Types of deputyship
• Authority under the order and when to seek additional authority
• Duties and OPG standards
• Property transactions: permissions, evidence, best interests analysis
• Capacity and Conveyancing
• Decision-specific capacity
• When to seek a formal assessment
• SRA obligations
• Land Registry Requirements
• Practice Guide 9 (Powers of Attorney and Registered Land): LPA or deputyship must be valid and in force
• Attorney must be authorised to act for the donor
• Execution of deeds: donor’s name in transfer panel, attorney in execution clause
• Evidence of identity for attorneys (Practice Guide 67)
• Common requisitions
• Special cases
• Joint Ownership and Loss of Capacity
• Legal framework: property held on trust for co-owners; two trustees required to give valid receipt for capital money
• One joint owner loses capacity: if LPA exists, attorney can act, but cannot act as sole trustee
• If no LPA, Court of Protection application for replacement trustee (COP GN2)
• Attorney is also a co-owner: cannot sign for themselves and as attorney for the other owner; need an additional trustee
• Attorney has a beneficial interest
• Practical steps
• Ethics and Professional Conduct
• Who is your client? Attorney/Deputy vs. the person lacking capacity
• Best interests vs. convenience
• Risks of fraud and undue influence
• Open market sale requirement
• Managing conflicts: attorney as purchaser, family disputes
• Practical steps: independent valuations, documenting decisions, Court approval
• Common Pitfalls and How to Avoid Them
• Missing authority; misunderstanding gifting rules and failure to consider best interests properly
• Case Studies and Q&A

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.