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If you mean can a POA sign a contract on behalf of the grantor to replace the heat pump, yes, if the wording in the POA allows for it.

Example, My former POA document on behalf of my mother was limited to conducting her banking (paying bills and such). We had a newer one drawn up and signed which allows me to pretty bunch do everything as if I were her.

Read your POA document
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My brother, with durable POA in New York State, had extensive work done on mom's house to bring it up to code so that we could sell it, the proceeds being used to fund her NH costs.

Will mom object to this being done?

If she has dementia, I wouldn't even discuss it with her.
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I think what Bryan is asking is whether the POA has the same rights as the homeowner when acting on the homeowner's behalf. In particular, homeowners often have the right to do the work themselves, but otherwise it must be done by a licensed professional.

So, as the POA, can you get a permit to do the work just as the homeowner could, without professional credentials?

If anyone can answer that, I'd be really interested.
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