Bidding on Behalf

Hi,

A friend has asked me to bid on a property for him this weekend as he will be overseas at the time. He has supplied me with a letter giving me authority to bid on his behalf along with a couple of blank cheques.

I spoke to the agent selling the house today and was told that if we happen to win the auction it will be my name on the contract with him as a nominee, as I understand this makes me liable.

Is there a way I can cover myself? What do I stand to loose?

Should I maybe get him to sign another letter saying that any money relating to this auction will be taken care of by him.

Thanks for any input.

Mark
 
Personally if it was me - I would kindly suggest to the friend that they organise a professional buyers agent to bid on his behalf. They would at least then be there in a professional capacity and presumable have all the legalities covered. Would only cost a couple of hundred dollars.

I know it's not really answering the question but maybe some food for thought ...

Jason
 
The buyer name would be "John Citizen and/or Nominees".

You can leave a 10% personal cheque on the day but it must be replaced by a bank cheque on the next business day - Usually the Monday after.

Can you get the 10% bank cheque?

As for liability:- Yes, you would be 100% liable for the contract performance if your sign the contract unless the scapegoat "Nominees" is found.

Do you feel comfortable to do this?

:)
 
The buyer name would be "John Citizen and/or Nominees".

As for liability:- Yes, you would be 100% liable for the contract performance if your sign the contract unless the scapegoat "Nominees" is found.


Just to understand what you guys are saying - putting the buyer name as "Jack AND/OR NOMINEES" (where Jack is my name) means I can be taken out of contract later on (before settlement and bank loan etc).
 
Just to understand what you guys are saying - putting the buyer name as "Jack AND/OR NOMINEES" (where Jack is my name) means I can be taken out of contract later on (before settlement and bank loan etc).

If this is the case and NOMINEES ( are they actually named on the contract? ) cannot be found all responsibility becomes mine? ie. I bought the house.

Mark
 
If this is the case and NOMINEES ( are they actually named on the contract? ) cannot be found all responsibility becomes mine? ie. I bought the house.

Mark

Yes.

If you sign the contract with "John Citizen and/or Nominees", what you would expect to do is:

- Purchase the 10% deposit Bank Cheque and give it to REA on Monday

- Advise the REA which a solicitor/conveyance you would use
The REA would send the contract to your solicitor

- Your solicitor would ask you to fill in the "Sale of RE Nomination Form"
If you have a nomination, then you would be off
If you don't have a nomination, then:

- Your solicitor would send you all transfer papers which you would duly sign and return. You would get a bank loan. You would get cheques to pay balance of payment, stamp duty, mortgage transfer fee, solicitor fee and all. You would get the key

- If you fail any of those things above, your solicitor and the vendor's solicitor would read the contract fine prints and execute accordingly

Simple, isn't it?

Now, your call is?

:)
 
I spoke to the agent selling the house today and was told that if we happen to win the auction it will be my name on the contract with him as a nominee

Do you regularly accept legal instruction from the paid agent of your contractual adversary ??
 
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