Knowledge · Moving into care
Dementia and selling the house — what has to be clarified first
When a parent develops dementia and the family home may have to be sold for care, almost everything hinges on an earlier question: was authority granted in good time? If it exists, the authorised person can act. If it is missing, an orderly, protected route runs through the court — it takes longer, but it protects the affected person.
As at: June 2026 · ← back to the guide
The answer first. Whether the home of a parent with dementia may be sold is decided by the provision that was made beforehand. If a valid lasting power of attorney exists, the authorised person can act in their place. If it is missing and the parent can no longer validly consent, their declaration of intent is void (sections 104, 105 BGB); the guardianship court then appoints a guardianship (section 1814 BGB), and a sale of the self-occupied home by the guardian requires the court’s approval (section 1850 BGB). The dignified order is: first clarify capacity and authority, then value, and only when care truly requires it, a sale — never a rushed one.
When a lasting power of attorney exists
A lasting power of attorney granted in good time is the calmest path. It allows a trusted person — often a child or the spouse — to act in financial matters for the affected parent without a court being involved. If the authority is also to be used to sell real estate, it is sensibly recorded by a notary, because entry in the land register requires a corresponding form.
What remains important: the authorised person acts not for themselves, but in the parent’s interest. The dignified order applies here too — a neutral valuation as the basis, a sale only where care truly requires it, and no haste that serves no one. The authority takes the length out of the process, not the care.
When no authority exists: the route through the court
If no valid authority exists and the parent can no longer grasp a decision as far-reaching as selling the house, no one can simply sign in their place. A declaration of intent made by a person incapable of contracting is void (sections 104, 105 BGB) — which protects them from acting in a state they can no longer assess. Assets can then only be managed through a court-appointed guardianship.
On application, the guardianship court appoints a guardian where a person can no longer attend to their affairs in whole or in part (section 1814 BGB) — often a close relative. But the guardian may not sell the house freely: the sale of a property occupied by the person under guardianship is among the transactions the court must approve in advance (section 1850 BGB), usually on the basis of a medical opinion and the question of whether the sale serves the welfare of the person concerned. This route takes longer than acting under a power of attorney — but each step is a step of protection for the affected person.
The dignified order — and where the medical belongs
What the diagnosis means in detail, how far an illness has progressed and when someone can no longer grasp a particular decision is a medical question — it belongs with the treating doctors and with expert guidance, for instance at the German Alzheimer Society (Deutsche Alzheimer Gesellschaft). Our task begins only afterwards: to order the sequence in which a family can proceed calmly.
That sequence is always the same. First the question of capacity and authority — is there a power of attorney, or is the route through the court needed? Then a neutral valuation of the house, so that no one decides in the vague. And only when care truly requires it, the question of a sale — orderly, with time, without pressure. The best provision remains the earliest: the right moment for a lasting power of attorney is before it is needed.
This article provides orientation and does not replace legal or tax advice. Medical questions around dementia belong with the treating doctors and with expert guidance, for instance at the German Alzheimer Society; recording is done by a notary.
Your next step
Power of attorney and guardianship
What to arrange in good time — and what runs through the court without authority.
Read more →Personal contribution in a care home
What care really costs — and when the house comes into question at all.
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- May I sell the house of my parent who has dementia?
- Only if you are authorised. With a valid lasting power of attorney you can act in their place. Without authority and where the parent can no longer validly consent, it is only possible through a court-appointed guardianship (section 1814 BGB) — and the sale then needs the court’s approval (section 1850 BGB).
- My parent can no longer sign for themselves — what does that mean?
- If, owing to illness, someone can no longer grasp a decision, they are to that extent incapable of contracting; a declaration of intent they make is void (sections 104, 105 BGB). This protects them from acting in a state they can no longer assess — and makes a power of attorney or a guardianship necessary.
- How long does the guardianship-court route take?
- Longer than acting under a power of attorney. The court first appoints a guardian (section 1814 BGB) and approves the sale of the occupied home only after review, usually on the basis of a medical opinion (section 1850 BGB). Each step is a step of protection — which is the reason to grant a lasting power of attorney before it is needed.
- Where do I get advice on dementia itself?
- Medical questions around dementia — course, assessment, daily handling — belong with the treating doctors and with expert guidance, for instance at the German Alzheimer Society. We order what follows around house and assets only afterwards: clarify authority, then value, and only if needed a sale.