Families in Hill Country Village and across Bexar County often rely on a power of attorney to help manage property and finances when a loved one can no longer do so independently. But that trust can raise serious questions, including whether the person holding a POA can sell a house and simply keep the proceeds. The short answer is no. Doing so is not just a breach of trust; it is a violation of Texas law.
Understanding exactly what a power of attorney allows, and where the legal boundaries are, can protect your family before a dispute ever arises.
What Is a Power of Attorney in Texas?
A Texas POA authorizes one person (the agent) to act on behalf of another (the principal) in legal or financial matters.
Under the Texas Estates Code, a power of attorney is a legal document that authorizes an agent to act on behalf of the principal (the person who signed the power of attorney). That authority can be broad or narrow depending on how the document is written. A durable power of attorney remains effective even if the principal becomes incapacitated, which is why it is commonly used in estate planning and elder law situations.
The agent steps into the principal’s shoes for certain purposes, but that does not mean the agent owns the principal’s property. The agent holds power over that property on the principal’s behalf, not for personal gain.
Can a POA Legally Sell Real Property in Texas?
A Texas POA can authorize an agent to sell real property, but only if the document explicitly grants that authority and the agent acts solely for the principal’s benefit.
Texas Estates Code section 751.151 requires that the power of attorney must be recorded in the county deed records for the transfer of real property and formal filings now require that a power of attorney specifically grant authority for real property transactions before an agent can sell, mortgage, or transfer real estate. A general statement of authority is not enough. The document must include language that clearly covers real property transactions.
If the authority is properly granted and the sale is completed, all proceeds from that sale belong to the principal, not the agent. The agent’s role is to carry out the transaction in the principal’s best interests, including directing all funds to the principal’s accounts or estate.
What Is Fiduciary Duty and Why Does It Matter?
An agent acting under a Texas POA owes the principal a fiduciary duty, meaning every decision must prioritize the principal’s interests above the agent’s own.
Texas Estates Code Section 751.101 sets out the duties an agent owes the principal. These include:
- Acting loyally and solely in the principal’s interest
- Avoiding conflicts of interest
- Keeping the principal’s property separate from the agent’s own property
- Maintaining accurate records of all transactions
- Acting with care, competence, and diligence
This is not a suggestion. It is a legal obligation. An agent who uses POA authority to enrich themselves at the principal’s expense has breached their fiduciary duty and may face both civil liability and criminal charges.
What Happens If a POA Agent Keeps the Money?
Keeping proceeds from a POA-authorized property sale is financial exploitation under Texas law and can result in civil lawsuits, criminal prosecution, and removal of the agent.
If an agent sells a principal’s home and pockets the proceeds, that conduct can constitute theft or financial exploitation of an elderly or disabled person under Texas Penal Code § 32.45 for misapplication of fiduciary property, or Chapter 31 for theft; note that Texas Human Resources Code § 48.002 defines exploitation for Adult Protective Services reporting rather than serving as the primary criminal charge. Depending on the amount involved, if the misapplied amount is $2,500 or more, it constitutes a felony under Texas Penal Code § 32.45, with potential enhancements for elderly victims.
On the civil side, the principal or their guardian or estate can sue the agent for breach of fiduciary duty, conversion, and fraud. Courts can order the agent to repay all funds, plus damages and legal fees, in certain circumstances.
Family members who suspect a POA agent is misusing their authority should act quickly. Evidence can disappear, and assets can be moved or spent in a short amount of time.
How to Challenge a POA Agent’s Actions in Texas
Texas courts can revoke an agent’s authority, order an accounting, and require repayment of misused funds when fiduciary duty is breached.
Courts in Texas have the authority to step in when an agent abuses their position. An interested party, such as a family member or another heir, can petition the court to revoke the agent’s authority, compel a full accounting of all transactions, and seek damages for any financial harm caused.
Under Section 752.051 of the Texas Estates Code, a principal may revoke a power of attorney at any time, as long as they have the mental capacity to understand what they’re doing. If the principal lacks capacity, family members or guardians may need to pursue guardianship or a court order to remove the agent and recover assets.
Keeping detailed financial records and acting promptly are both critical to a successful challenge.
Protecting Your Family Before a Problem Develops
Disputes over POA authority often arise because the document was drafted too broadly, the wrong person was named as agent, or no one monitored the agent’s actions over time. Working with a Texas family law and estate planning attorney before these problems develop is always the more effective path.
A well-drafted power of attorney clearly defines what the agent can and cannot do. Regular oversight and documentation reduce the risk of abuse and make it far easier to pursue remedies if something does go wrong.
Talk to South TX Family Law About POA Concerns
If you have questions about a power of attorney, suspect financial exploitation, or need help addressing a breach of fiduciary duty, South TX Family Law is ready to help. Our firm serves families throughout Hill Country Village and the surrounding San Antonio area with straightforward legal guidance. Call us at 210-775-0353 or contact us to schedule a consultation.
Last updated: July 2026
