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Selling a car for someone else with power of attorney

Selling tipsPublished 10 min read
Guide cover: Power of attorney

Key takeaways

  • To sign a car sale for someone else, you generally need a power of attorney covering financial matters, or a financial management or administration order. A medical or guardianship appointment doesn't cover money.
  • A general power of attorney stops working if the owner loses capacity, and every power of attorney ends when the owner dies.
  • Ring the transport authority before the sale. Online forms are usually built for the registered operator, and some transfers, such as WA court-order and deceased-estate cases, need a paper form.
  • Have the money paid into the owner's account and keep copies of everything. NSW guidance says attorneys must keep their own money separate.

Yes, you can sell a parent’s or relative’s car if you hold a financial power of attorney that is still in force, because it lets you sign legal documents and deal with their property for them. A medical or guardianship appointment doesn’t cover money or property, and a general power of attorney stops working once the owner can no longer make their own decisions. Check which document you hold before you agree a sale.

Document names, tribunals and transport forms differ between states, so check the rules where the owner lives.

Who can legally sign when the owner can’t?

Start with the owner. Queensland’s government guidance says every adult is presumed to have capacity to make all decisions until proven otherwise, and that capacity is specific to the decision being made. A parent who needs help with phone calls may still be able to decide to sell and sign the forms themselves, with you beside them.

When the owner can’t sign, these are the people who generally can:

  • An attorney under a general power of attorney, while the owner still has decision-making capacity.
  • An attorney under an enduring power of attorney that covers financial matters, including after the owner loses capacity.
  • A financial manager or administrator appointed by a tribunal or court when the owner can’t manage their own affairs.
  • The executor or administrator of the estate, if the owner has died, because a power of attorney ends at death. See our guide to transferring a car after someone dies.

None of these comes automatically with being a spouse, son or daughter. The owner has to make a power of attorney themselves, and Queensland’s guidance says they must understand the nature and effect of the document when they do. A financial management order has to be made by a tribunal or court.

Document Lets you sell the car? When it stops working
General power of attorney Yes, within any limits it sets. When the owner cancels it, loses capacity or dies.
Enduring power of attorney (financial matters) Yes, once the financial power has started. When the owner dies, or cancels it while they still have capacity.
Enduring guardian or health-only appointment No: health, medical and lifestyle decisions only. Not relevant to a sale.
Financial management or administration order Yes, within the terms of the order. Depends on the order.
The owner’s say-so, spoken or written You can deal with buyers, but the owner still signs. Whenever the owner says.

Is a medical power of attorney enough to sell a car?

No. The NSW Government’s power of attorney page says that in NSW an attorney can only make financial and legal decisions, such as signing legally binding documents, operating bank accounts and buying and selling real estate. Accommodation, health care, lifestyle and medical decisions sit with a separate appointment, the enduring guardian, and the NSW guidance on enduring guardians says plainly that they can’t make financial decisions.

Queensland works differently, so read the document, not just its name. A Queensland enduring power of attorney can cover financial matters, personal matters (including health care), or both. The owner also chooses when the financial power starts: immediately, from a set date, in particular circumstances, or only once they no longer have capacity. Before you list the car, read the document for three things:

  1. Which matters it covers: financial, personal or both.
  2. When the financial power starts, and whether that point has been reached.
  3. Any limits or conditions the owner wrote into it.

If the wording isn’t clear, ask a solicitor before you accept an offer.

What if the owner has dementia and there’s no power of attorney?

A diagnosis on its own doesn’t settle the question. Queensland’s guidance says capacity can change, and can depend on how complex the decision is, the support available and when the decision is made. Someone in the early stages of dementia may still be able to decide to sell a car they no longer drive, with the right support.

If the owner can’t make the decision and has no enduring power of attorney, someone has to apply for an order. In NSW the route is a financial management order, made by the Guardianship Division of the NSW Civil and Administrative Tribunal (NCAT), the Supreme Court or the Mental Health Review Tribunal. The order can appoint a private manager, such as a family member or friend. If no one is willing or able to take that on, the court or tribunal appoints NSW Trustee and Guardian. The NSW Government lists motor vehicles among the assets a financial manager looks after. In Victoria, VCAT can appoint an administrator to manage the financial and legal affairs of an adult who can’t make those decisions because of a disability.

Until an order is made, nobody can sign a sale for the owner, so keep the car secure, registered and insured.

A hypothetical example: your father, 86, has moved into care, can no longer make financial decisions, and his 2022 SUV sits at his house. If you hold an enduring power of attorney covering financial matters that started immediately, you can sell the car as his attorney, with the money going to his account. A general power of attorney he signed years ago would no longer work. If your only document makes you his enduring guardian, you can decide on his care but not sell his car.

Can a relative sell your car while you’re away?

For the hands-on part, yes. If the owner has capacity and is simply overseas, in hospital or working away, a relative can show the car, take calls and pass on offers without any legal document. The owner still signs the sale paperwork and receives the money.

If the owner can’t be there to sign, a general power of attorney lets someone sign for them. In NSW it’s valid only while the owner can make their own decisions, so it suits a planned absence rather than a decline in health. An enduring power of attorney keeps working if capacity is lost later.

If you sell to us, the offer comes by phone, and a key drop-off can be arranged if no one can be there for collection.

How do transport authorities handle a sale by an attorney?

Online forms are usually built for the registered operator, so call the transport authority in the owner’s state before the sale date and ask what it needs from an attorney or financial manager. Two examples:

  • NSW. Service NSW’s online notice of disposal is for the current registered operator and needs their MyServiceNSW Account and NSW licence or Photo Card. A paper notice of disposal can be lodged at a service centre or by post, so if you’re signing as attorney, ask Service NSW which way to lodge it. Service NSW also has an in-person transaction for a carer or guardian who needs to transfer a vehicle’s registration on behalf of the registered operator. It accepts a court order, power of attorney or statutory declaration as proof of status, but its checklist also lists a pensioner concession card in the operator’s name, so ask whether it fits your sale.
  • WA. The seller has 7 days to notify the Department of Transport and Major Infrastructure. Some transfers can’t be done online through DoTDirect, including vehicles that are part of a court order or deceased estate, transfers involving joint ownership, and cases where the seller, buyer or vehicle doesn’t match the department’s records. Those go on the paper MR9 form. If you’re signing as attorney or under a tribunal order, ask the department which way to lodge before the sale.

In most states the seller has to lodge the notice of disposal, so as attorney that task usually falls to you. Expect to show the power of attorney or order and your own photo ID, and ask whether the authority needs the original or a certified copy. Our list of documents needed to sell a car covers the rest.

What will a buyer ask to see?

A careful buyer will want proof that you can sign and that the car is free to sell. Have these ready before anyone makes an offer:

  • The power of attorney or tribunal order, with the owner’s name matching the name on the rego.
  • Your photo ID, matching the attorney or manager named in the document.
  • Evidence that the power has started, if the document only takes effect in certain circumstances.
  • The rego papers, service logbook, owner’s manual and every key.
  • Loan details, if the car is under finance. A lender’s security interest shows on the PPSR, so it has to be paid out at or before the sale.
  • The owner’s bank details for the payment.

If you sell to us, tell us on the call that you’re acting under a power of attorney, so we can confirm what we need to see before anything is signed. If the car is under finance, we deal with the lender directly to pay out the loan, then pay any equity. That usually takes 2 to 3 business days to settle.

The checks run both ways: our guide on how to check a car buyer is licensed shows you how to confirm a dealer’s licence.

How do you protect an older owner from scams?

If a parent has been taking calls from a private listing, go through the warning signs with them. Scamwatch lists these warning signs:

  • A buyer who is happy to buy an expensive item without seeing it in person.
  • A payment for more than the agreed price, followed by a request to refund the difference.
  • Requests to pay by unusual methods, including several different PayIDs or accounts.
  • An account holder name that doesn’t match the person you think you’re dealing with.

Then set some house rules. Put your number on any listing rather than the owner’s. Agree that nobody hands over keys or signs a transfer until the money is in the owner’s account. Western Australia’s Consumer Protection gives private sellers the same advice: make sure the money has arrived before you hand over the keys. Check the balance in the bank app or with the bank, not from an email or a screenshot. If something has gone wrong, contact the bank straight away. IDCARE can help on 1800 595 160.

What are your duties as attorney during the sale?

The NSW Government says an attorney is legally required to act in the owner’s best interests, avoid conflicts of interest, respect the owner’s views, wishes, values and culture, keep their affairs confidential and stay within any limits on their authority. Attorneys also have to keep accurate records and keep their own money separate from the owner’s.

For a car sale, that means having the full price paid into the owner’s account, not yours, and keeping a copy of the offer, the paperwork and the payment record.

Steps for a smooth sale on someone’s behalf

  1. Confirm your authority. Check the document covers financial matters, has started and is still in force.
  2. Involve the owner. Talk the plan and the offer through with them as far as they’re able.
  3. Ring the transport authority. Ask what it needs from an attorney and which form to use.
  4. Gather the documents. Use the buyer checklist above.
  5. Get a firm offer. Tell the buyer up front that you’re signing as attorney.
  6. Get paid first. The NSW Government’s advice is not to sign anything that transfers ownership until you’ve been paid.
  7. Finish the paperwork. Lodge the notice of disposal the way your state requires, remove any e-tag, and keep the insurance running until the car has been collected.

Should you sell it, and who should you sell to?

As attorney, the question isn’t only whether you can sell, but whether selling now is in the owner’s best interests. A car nobody drives still costs rego and insurance, and a private sale means listings, strangers, test drives and payment risk, handled on someone else’s behalf.

Selling to a licensed dealer takes most of that away. Sell Your Car Australia (Autohaus Australia Pty Ltd, NSW motor dealer licence MD 077404) makes a genuine offer by phone, not an online estimate. If the offer is accepted, a deposit is often paid the same day, then the inspection happens at a time and place that suits you. The balance is paid by bank transfer, and we arrange collection from home or work, anywhere in Australia, only after you confirm the funds have cleared. We prepare the sale paperwork, help with the transfer of ownership and make sure the notice of disposal is done correctly. The valuation is free, with no obligation and no fees taken out of the offer.

We buy cars, utes, SUVs and 4WDs 2021 or newer with 100,000 km or less. If the car is older or has done more, send it through anyway and we’ll tell you straight away if we can help. Our page on selling a car for a parent or family member explains how that works, how we can help covers other situations, or you can call 1800 73 55 73.

Questions sellers ask

Can I sell my mum's car if she has dementia?

Possibly. Queensland's guidance says capacity depends on the decision and can change over time, so a diagnosis alone doesn't settle it, and she may be able to sell with your help. If she can't make the decision, you need an enduring power of attorney covering financial matters that she signed while she had capacity, or a financial management or administration order from a tribunal or court. Neither comes automatically with being her child.

Does an enduring power of attorney cover selling a car?

It does if it covers financial matters and the financial power has started. In NSW an attorney makes financial and legal decisions, and an enduring power of attorney keeps working if the owner loses capacity. In Queensland an enduring power of attorney can be limited to personal matters such as health care, and the financial power can be set to start only on a certain date, in certain circumstances or once the owner loses capacity, so read the document before you sign anything.

Do I need to register the power of attorney to sell a car?

In NSW, the NSW Government says a power of attorney must be registered with NSW Land Registry Services if the attorney will deal with real estate. A car isn't real estate, although the same page says a registered power of attorney may be more easily accepted as evidence of your authority. Ask the transport authority what proof it needs, including whether it wants the original document or a certified copy.

Can I buy the car myself if I'm the attorney?

Get legal advice first. NSW Government guidance says an attorney must act in the owner's best interests and avoid conflicts of interest, and buying the owner's car yourself, or selling it to another relative, could put you in exactly that position. If you go ahead on advice, keep a record of how the price was set, such as independent offers.

Can I still use a power of attorney after the owner dies?

No. General and enduring powers of attorney both end when the owner dies. From then on the car is dealt with through the estate, by the executor or administrator. In NSW, Service NSW asks for proof of death and the will, probate or letters of administration, as relevant.

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