Power of attorney to purchase property

[organix]

Hi

I'm looking at purchasing a property interstate and its not feasible for me and my partner to go interstate each weekend to view properties. We are thinking of giving a general power of attorney to my partners dad so that he is able to bid for us at auction.

Is there any issues with this from the banks or real estate agents perspective? We would be able to attend settlement, just not attend auctions every weekend.

If we gave POA to my partners dad, can I just give a blank but signed personal cheque to him for the auction for him to fill in?

Thanks!

 

[Terry_w]

Hi

I'm looking at purchasing a property interstate and its not feasible for me and my partner to go interstate each weekend to view properties. We are thinking of giving a general power of attorney to my partners dad so that he is able to bid for us at auction.

Is there any issues with this from the banks or real estate agents perspective? We would be able to attend settlement, just not attend auctions every weekend.

If we gave POA to my partners dad, can I just give a blank but signed personal cheque to him for the auction for him to fill in?

Thanks!

You probably wouldn't want to give a broad general POA but a restricted one so all he can do is bid at auction on a specific property for you.

No issues from a borrowing POA if you are the one signing paperwork. Some banks will not accept loan documents signed by an attorney, but sounds like you will be taking care of that.

 

[organix]

Ah ok thanks - this is the form we will be using which doesn't have any space to put clauses.

http://www.publicadvocate.vic.gov.a...uides/General Power of Attorney form 2014.pdf

Do I just add some clauses underneath?

Does the contract signed on the day of the auction (by the POA) have no bearing for the banks?

 

[Terry_w]

Time to see a lawyer!

 

[beachgurl]

Why don't you just register as a phone bidder and have your dad attend to hold the phone and the bidding card? At least then there are no issues with document signing by third parties in terms of loan and sale contracts.

 

[JDM]

There are no issues with appointing an attorney to sign the contract or bid on your behalf. As has been mentioned, you would generally provide a limited power of attorney in this instance.

What state is the property located in? Generally, you should ensure the power of attorney complies with the laws of that state. If the attorney will be signing mortgage or transfer documents, the power of attorney may require registration with the land registry in that state to allow the attorney to sign the mortgage or transfer (this is definitely the case for Qld).

 

[RPI]

Tee up a lawyer who is also doing the conveyancing and they will be able to make sure everything is sorted and complies. Shouldn't charge you that much extra either

 

[Jacque]

Hi

I'm looking at purchasing a property interstate and its not feasible for me and my partner to go interstate each weekend to view properties. We are thinking of giving a general power of attorney to my partners dad so that he is able to bid for us at auction.

Is there any issues with this from the banks or real estate agents perspective? We would be able to attend settlement, just not attend auctions every weekend.

If we gave POA to my partners dad, can I just give a blank but signed personal cheque to him for the auction for him to fill in?

Thanks!

Another option is to have a standard letter of authority for your dad to bid on your behalf, but organise for the auctioneer to sign the COS on your behalf, if successful. This is usually acceptable but request via your conveyancer/solicitor for the individual property that you're intending to bid on. Most auctioneers will agree, as absentee purchasers are a known issue and this option will save you $$$ in setting up a POA.

Alternatively, if the auctioneer won't sign in your place, investigate a limited POA via your conveyancer/solicitor and best of luck with your impending purchase!

 

[Paul@PFI]

I would call Terry and sort a restricted poa. Limited authority is key

 

[organix]

There are no issues with appointing an attorney to sign the contract or bid on your behalf. As has been mentioned, you would generally provide a limited power of attorney in this instance.

What state is the property located in? Generally, you should ensure the power of attorney complies with the laws of that state. If the attorney will be signing mortgage or transfer documents, the power of attorney may require registration with the land registry in that state to allow the attorney to sign the mortgage or transfer (this is definitely the case for Qld).

The property is located in Victoria. I am assuming the contract signed on the auction day is not the mortgage or transfer documents so I would not have to register the POA as I could attend settlement.

The info sheet for the POA document says it does not need to be witnessed so I'm not sure why I would need to see a lawyer? I will go and get it witnessed anyway just in case. I have read the document more closely and you can limit the POA on the document.

I also spoke to the real estate agent of a property I'm interested in and they were happy to accept a stat dec indicating that someone else can bid for us.

Jacque - Seeing as absentee purchasers are common, would most agents be happy to accept a cheque by express post on the next business day or bank deposit until 10% deposit has been reached?

And thanks beachgurl - I did not know phone bidding was an option.


Thank you all for your replies.