When a mother or father needs assisted living, memory care or a nursing home, the family house is often their largest asset, and often the one that has to pay for that care. Selling a parent’s house in Florida raises questions most families have never faced: who has the legal authority to sign, how a sale affects Medicaid, how capital gains taxes apply, and what to do with a home full of decades of belongings. This guide walks through each step for families in Broward, Miami-Dade and Palm Beach counties.
Quick answer: If your parent can still make their own decisions, they sign the sale themselves, with your help. If they can’t, you will generally need either a durable power of attorney that specifically covers real estate or a court-appointed guardian with the court’s approval to sell. Before you list or accept an offer, talk with an elder law attorney about Medicaid, because once the house is sold, the proceeds can count against the asset limit.
Step 1: Confirm Who Has the Legal Authority to Sell
The first question a title company will ask is who can sign the deed. The answer depends on your parent’s capacity and on the documents already in place.
If your parent can still make decisions
The simplest path is for your parent to sign the listing agreement or sales contract and the closing documents themselves. Many families handle the calls, paperwork and showings while the parent reviews and signs. Title companies can usually arrange for a notary to meet your parent at their new residence for the closing documents.
If you hold a durable power of attorney
Under section 709.2201 of the Florida Statutes, an agent can exercise only the authority the power of attorney specifically grants. A general phrase such as “do all acts I could do” does not, by itself, authorize a sale. Read the document for language covering real property, and if your parent is married and the house is their homestead, the spouse must join in the sale. Expect the title company to review the power of attorney well before closing and to ask you to sign an affidavit confirming that it is still in effect. Older or out-of-state documents sometimes raise questions, so send a copy early.
If there is no usable power of attorney
When a parent can no longer make decisions and has no valid power of attorney, a family member may need to petition the court for guardianship under Chapter 744. A guardian must obtain the court’s approval before selling the ward’s real property, including a homestead (section 744.441). This adds weeks or months, so plan your timeline around the court order and choose a buyer who is willing to wait for it.
Step 2: Understand How the Sale Affects Medicaid
Long-term care is expensive, and many families eventually look to Florida’s Medicaid long-term care program. While your parent intends to return home, Florida generally treats the house as an exempt asset, up to an equity limit. Once the house is sold, however, the proceeds become cash, and cash counts toward Medicaid’s asset limit. Listing the home or renting it out can also raise questions about whether your parent still intends to return.
Transferring the sale proceeds to children or other relatives is not a simple fix either. Medicaid reviews transfers made during a look-back period of five years, and gifts can lead to a penalty period without coverage. The right plan depends on your parent’s income, assets and health, so meet with a Florida elder law attorney before you sign a contract, not after the money arrives.
Step 3: Plan for Taxes and the Mortgage
- The home sale exclusion. A single owner can generally exclude up to $250,000 of gain on a main home, or $500,000 for a married couple filing jointly, if they owned and lived in it for two of the last five years.
- A special rule for care facilities. If your parent became physically or mentally unable to care for themselves and lived in the house for at least one of the last five years, time spent in a licensed care facility, such as a nursing home, counts as living in the home for that test (Internal Revenue Code section 121(d)(7)).
- No step-up during life. When a parent sells during their lifetime, the gain is measured from what they originally paid plus improvements. Heirs who inherit a house usually receive a stepped-up basis instead. Families sometimes weigh this difference, so ask a tax professional before deciding when to sell.
- Reverse mortgages. A reverse mortgage (HECM) generally becomes due when the borrower has been out of the home for 12 consecutive months for health reasons. Our guide to selling a house with a reverse mortgage in Florida explains the payoff and timelines.
- Property taxes. If your parent is moving to a smaller Florida home rather than a care facility, homestead portability may let them carry part of their Save Our Homes savings to the new home.
Step 4: Choose How to Sell
Once the authority, Medicaid and tax questions are settled, the practical question is how to sell. Many parents’ homes have not been updated in decades, and the family may live out of state or be busy managing care. The two main routes compare like this:
| Listing with an agent | Selling as-is to a cash buyer | |
|---|---|---|
| Repairs and updates | Often expected to compete with updated homes | None; the house is sold in its current condition |
| Cleanout and staging | Usually needed before photos and showings | Not required |
| Showings | Open houses and repeated visits | One walkthrough |
| Financing risk | Buyer’s loan and appraisal can delay or end the deal | No loan or appraisal contingency |
| Commissions | Typically paid from the sale proceeds | None |
| Closing date | Depends on the buyer and lender | Chosen by the family; as little as 7 days |
| Best for | Updated homes when time is not pressing | Dated homes, distant families and care deadlines |
A listing can bring a higher headline price for a home in good condition. A direct sale often makes more sense when the house needs work, the family lives far away, or care bills are already arriving. To compare the two fairly, look at what you actually take home; our guide to cash sale net proceeds shows how to do the math, and our comparison of cash buyers, agents and iBuyers covers the trade-offs in more detail.
Practical Steps Before the Sale
- Gather documents first: the deed, mortgage statements, the power of attorney or guardianship order, recent tax bills, insurance policies and, for a condo, the association contact.
- Secure valuables and records: photos, jewelry, financial papers and anything with personal information should leave the house before buyers or contractors visit.
- Check the insurance: many homeowners policies limit coverage once a house has been vacant for an extended period. Call the insurer when your parent moves out.
- Keep the utilities on: power and water protect the house from mold and make inspections possible.
- For condos and 55+ communities: ask the association about buyer approval, pending special assessments and any milestone inspection or SIRS requirements, since they can affect timing.
- Keep siblings informed: sharing the numbers and the timeline early prevents conflict later, especially if the house will eventually pass to several heirs.
How a Sale to Property Solution Services Works
Property Solution Services has bought houses across South Florida since 2016, with more than 900 homes purchased, and the head of the company has more than 32 years in the South Florida real estate business. We regularly work with adult children, agents under a power of attorney and guardians, and we understand that the sale is only one part of a difficult transition.
- Tell us about the house. Call (954) 693-9333 or use the form on this page. Family members who live out of state can handle most of the process by phone and email.
- We visit once. We look at the property as it is, with no repairs, cleaning or staging.
- You receive a written cash offer. There are no commissions, and we pay the closing costs.
- You choose the closing date. Close in as little as 7 days, or later to match your parent’s move, an attorney’s advice or a court approval.
If you are comparing buyers, our checklist on how to choose a cash home buyer in South Florida explains what to ask before you sign anything.
Selling a Parent’s Home in Broward, Miami-Dade and Palm Beach
We buy houses, condos and townhomes throughout Broward County, Miami-Dade County and Palm Beach County, including Fort Lauderdale, Plantation, Pembroke Pines, Tamarac, Lauderhill, Hollywood, Miami and Hialeah. Many of the homes we see in these areas belong to longtime owners in 55+ communities and older single-family neighborhoods, where dated kitchens, original roofs and association rules are common.
If your parent has already passed away, the process is different: the house usually goes through the estate. Start with our guides to selling a house in probate in Florida, inheriting a house with no will and selling an inherited house with siblings. For other difficult situations, see selling your house in any situation.
Frequently Asked Questions
Can I sell my parent’s house with a power of attorney in Florida?
Yes, if the power of attorney specifically gives you authority over real estate. Florida law limits an agent to the powers the document expressly grants, so broad language such as “do anything I could do” is not enough on its own. If your parent is married and the house is their homestead, the spouse must also sign. The title company will review the document before closing.
Do I need a guardianship to sell my mother’s house?
Only if she can no longer make her own decisions and there is no valid power of attorney that covers real estate. A Florida guardian must get the court’s approval before selling the ward’s real property, including a homestead, so allow extra time for the court process.
Will selling the house affect my parent’s Medicaid eligibility?
It can. Florida Medicaid generally treats the home as an exempt asset while the owner intends to return, but once it is sold the proceeds become cash that can count against the asset limit. Giving the money to family can also trigger a penalty. Speak with an elder law attorney before you sign a sales contract.
Does my parent owe capital gains tax after moving to a nursing home?
Often not. A single owner can generally exclude up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly). If your parent became unable to care for themselves and lived in the house for at least one of the last five years, time spent in a licensed care facility can count toward the residence requirement. Confirm the details with a tax professional.
What happens if my parent passes away before the house sells?
A power of attorney ends at death, so the agent can no longer sign. The house then passes through the estate, which usually means probate, and the personal representative takes over the sale. If you are already under contract, let the buyer and the title company know right away.
How fast can we sell a parent’s house for cash?
Once the paperwork and title are in order, a cash sale can close in as little as 7 days, or on a later date that lines up with your parent’s move. If a guardianship court order is needed, the closing waits for that approval.
This article is general information, not legal, tax or Medicaid advice. Rules change and every family’s situation is different, so speak with a Florida elder law attorney and a tax professional before you sign a contract.