Auction legal question
- Thread starter RedCat
- Start date
Oh of course you can both go on title even if you are the only one signing on auction day. All you need to do is just fill in a nomination form before settlement. The loan application with the bank can still be in joint names because they know that this is standard practice.
With POAs for land purposes, to my understanding, the POA needs to be registered with land titles to be effective for purchases, mortgages etc
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Our legal advice from the REI legal team + an external QC is that you can use an unregistered general POA to bid at auction and also to sign contracts to exchange but you do need a registered POA to sign mortgage docs and transfer docs. However, these last 2 things can be done weeks after exchange.
We use unregistered POAs to bid and to sign contracts on exchange quite frequently, so you can understand we take a deal of interest on the subject, since a number of times we need to educate selling agents in the process when trying to register to bid.
RedCat you have 2 options:
Option 1:
Get a copy of the blank contract and have your hubby sign it as purchaser. Take this with you to the auction and in the event that you are the successful purchaser, you sign too and fill in the purchase price then.
You will also need an "Authority to Bid" on behalf of your hubby + a photocopy of his photo ID - like a drivers licence or passport.
So you turn up and register in both your names and hand over your authority to bid letter and you're all good to go.
Option 2:
Download a general POA from here: http://www.legalaid.vic.gov.au/cl.tc_gen_pa.pdf
Have your hubby fill it out and sign, and you are good to go also. On point 2. on the 2nd page, you might add the words: Bid at auction on xx date, for xx property, to $xx amount and to negotiate on my behalf if the property is passed in up until midnight on xx date.
Keep the original but hand the POA with the $xx amount crossed out so it is unseen to the agent registering you. (if they ask to see it at all on registering).
Even though unregistered, it is fine for bidding & signing on the day. However, your hubby will need to sign mortgage docs and transfer doc etc., himself, when they come.
I have bid by phone at a few auctions. All I had to do was fill in an authority provided by REA (their own, and very basic) giving them authority to bid on my behalf and confirming how the deposit would be paid. Copy of ID is required.
So you could do the same with basic authority from your husband to you to sign on his behalf or both of you to agent for them to sign on both your behalf. Pretty simple.
Our legal advice from the REI legal team + an external QC is that you can use an unregistered general POA to bid at auction and also to sign contracts to exchange but you do need a registered POA to sign mortgage docs and transfer docs. However, these last 2 things can be done weeks after exchange.
We use unregistered POAs to bid and to sign contracts on exchange quite frequently, so you can understand we take a deal of interest on the subject, since a number of times we need to educate selling agents in the process when trying to register to bid.
This mirrors exactly the advice I have recently obtained in relation to a transaction I am currently involved in.
...and the same re educating agents too...not all, but a large percentage in my experience haven't a clue when it comes to anything that deviates only slightly from being vanilla.
Boods
Make sure get legal advice and advice from the agent. The vendor may refuse to accept a POA too.
And watch out for signing and/or nominee as if there is not prior written agreement double stamp duty could apply.
In NSW it is possible for one party to sign the contract and then both names appear on the transfer for duty of about $10 extra, known as transfer in conformity. Not sure if it is possible down there in VIC.
I think the best bet is to use a POA. But make sure it is properly drawn up and validly executed and the vendor will accept.
And watch out for signing and/or nominee as if there is not prior written agreement double stamp duty could apply.
In NSW it is possible for one party to sign the contract and then both names appear on the transfer for duty of about $10 extra, known as transfer in conformity. Not sure if it is possible down there in VIC.
I think the best bet is to use a POA. But make sure it is properly drawn up and validly executed and the vendor will accept.
Did you need to stump anything up prior to the auction?
I had to put down 10k security prior to an unsuccessfull phone bid recently in the RE's trust fund along with signing over authority to the agents auctioneer to sign on mine and my wifes behalf the sale contract. Maybe I don't look trust worthy?
The photo ID is required even to register for auctions where you attend.
Another auction someone in the thick of the action started bidding and was not registered. It appears you can wait till the thick of the auction anyway and just start bigging when they will put everything on hold take you out to sign up then and there but I don't know if that is always the case, or this was an understanding auctioneer? Interesting tactic if you don't want the vendor to have high hopes on the day... Pretty daunting if only 3 or 4 people register to bid at an auction if you are the vendor I imagine.
With one agent I would just post a cheque which would cover well beyond my 10% deposit - not just to my limit so I don't tip him off
, with understanding it was only to be held until Monday when I would deposit the correct deposit direct into his trust account, with another agent he was not concerned - took my word that I would deposit money into the account asap. But some agents will not take phone bids.
Has this always been the case? I had an enduring POA made up a number of years ago before moving overseas when I was selling a jointly held property. As far as I know, the POA is not registered. In the end, I was back in the country at the time the property sold so I could sign in person and didn't need to test the POA.
Yes. Its been like that for a long tim anyway. An attorney cannot deal with land unless the POA is registered.
It is nothing major though. Just take the POA to the land titles office and pay the fee and they will stamp it and hand it back and keep a copy. That's about it.
For the contract signing it wouldnt need to be registered, but for the mortgage or transfer etc it would.
