Buying in QLD, father signs on behalf of my corp trustee.

[DavidMc]

Hey guys, long time no see!

I'm buying a property in QLD with my brand new discretionary trust.

From what I've read around is I'm OK just to write '<company name> Pty Ltd' on the contract of sale? I read some posts about potential double stamp duty in QLD if we were to write 'and/or nominee' so I will avoid that.

Question - is my father (who is acting as a buyers agent while I am working down in Vic) OK to sign on behalf of '<company name> Pty Ltd' (which I am the sole Director of). i.e. Could I appointment him my Secretary or Treasurer and authorise him to sign on behalf of my company? (and perhaps write a minute about this).

My guess is this is fine as when I bought in a company before, I signed my name but it wasn't printed anywhere anyway and my signature looks like scribble, so it really could have been anyone anyway.

Or do I really need to have the docs emailed/posted down, me give it a wet signature and then express post them back up?

Time is of the essence here in this hot market... details of purchase to follow once the dust settles! I'd ask my QLD based legal eagle but things have moved so fast I'm putting in an offer before I've even found one yet!


David.

 

[wylie]

Not sure if this helps, but when we last sold, hubby was at the coast and I signed in my capacity for my father (house in his name plus hubby's name) and we faxed the contract to a bowling alley for hubby to sign.

I'm fairly sure a follow up had to be signed once he got back, but the fax was acceptable. I think there was some authority sent with the fax allowing that too.

Your solicitor should know this stuff. I won't say your agent should know because I'll get screamed down. Our agent knows, but perhaps some don't.

I also know at least twice hubby has signed faxed contracts and faxed them back to the agent to purchase and that has been enough to seal the deal. This was possibly ten or more years ago, so cannot recall the details.

I realise that only covers your question about query about a "wet" signature and not the other part.

 

[Terryw]

Definitely not.

You would need a power of attorney to allow a third party to bind the company. This would be complex and time consuming and would probably need to be registered.

It may be possible to appoint him director for the day, but this can cause problems too.

seek legal advice because if you stuff it up it could be costly.

 

[Propertunity]

Question - is my father (who is acting as a buyers agent while I am working down in Vic) OK to sign on behalf of '<company name> Pty Ltd' (which I am the sole Director of). i.e. Could I appointment him my Secretary or Treasurer and authorise him to sign on behalf of my company? (and perhaps write a minute about this).

Possibly 'not'.

We had a client who tried this recently where he was the sole company director with his Mother acting under a registered POA, siging a contract on his behalf - and it was disallowed. (Not exactly the same scenario as you described - but you'll need specific legal advice).

 

[the helix]

Possibly 'not'.

We had a client who tried this recently where he was the sole company director with his Mother acting under a registered POA, siging a contract on his behalf - and it was disallowed. (Not exactly the same scenario as you described - but you'll need specific legal advice).

I'm guessing this was disallowed because from what you describe, the Mother was signing on behalf of the son. If the company (by it's Sole Director) appointed the Mother as an attorney, then would that not be different?

Why not have your company appoint your father as it's attorney? The PoA could be specifically worded to the extent of the purchasing this property and completing any ancilliary documentation.

Just be clear in the PoA that the company does so in it's own right and/or in it's capacity as a trustee for your discretionary trust.

 

[DavidMc]

Hi guys. Thanks for your responses, I have read every one.

To stay on the safe side I'll just scan/email the docs back with a hardcopy in express post.

Cheers!

 

[JDM]

Hi guys. Thanks for your responses, I have read every one.

To stay on the safe side I'll just scan/email the docs back with a hardcopy in express post.

Cheers!

This is the best way to go by the sound of it.

Appointing your father as director/secretary will not solve the situation as s127 of the Corporations Act requires the signature of a director and a secretary or two directors. It is only a sole director company that can be bound by the signature of one director.

A power of attorney would be a suitable solution but as mentioned, will be more hassle than posting the contract.

"From what I've read around is I'm OK just to write '<company name> Pty Ltd' on the contract of sale?" - It would be best to put <company name> Pty Ltd as trustee for <trust>.