Authority to bid vs POA vs Statutory Declaration

My wife and I are looking to purchase a property at auction as tenants in common. The property is in NSW

Unfortunately she's not able to attend due to work commitments.

I understand that one option is to use a power of attorney which carries a fee.

I'm wondering if it's possible to use an "authority to bid" instead. ie: authorise me to bid on her behalf. both names go on the contract

Also, I heard another option is to use a statutory declaration prior to settlement. Is this true?

 

An authority to bid - if you find someone willing to take the stamp duty risk and the vendors agree that might be possible.

Not sure how a stat dec could work.

 

Under many state laws only a specific form of POA can be used to effect a contract for land (most states). Its intended to limit people acting outside authority for elder or sick persons. Imagine if nan gave you a POA to pay some bills and you flogged her house.

Its a issue for legal advice.

eg NSW : There is no requirement for your Power of Attorney to be registered. However, if you want your attorney to deal with any real estate you own in NSW, then the Power of Attorney document must be registered with NSW Land Registry Services.

Agent may be ale to advise. Auctioneers will have been asked this endless times.

 

Speak to the RE agent.
They will be more than helpful if it means another bidder.

 

Hi @Befuddled no need to spend a cent here on document preparation or even obtain an "Authority to bid" form on your wife's behalf. The auction laws in NSW are very clear here. If you are buying as a couple (regardless of the type of ownership) only one of you has to register at auction.

From Fair Trading NSW Property Stock and Business Agents Act 2002 Auction Laws:

If a couple is registering to bid and would be buying the property together, only one of them needs to register.

Should you be successful at the auction you will require both signatures on the front page of the contract. However, and again as per the current legislation, you can actually get the auctioneer to sign on your wife's behalf. This is perfectly acceptable and we have done this many times over the past 14 years with our absentee clients. Just let the selling agent know your wife is away and ask for the 'Authority for the Auctioneer to sign' on her behalf. Most agencies have these forms in place and will check with the auctioneer - pre-registering in these cases is easier and more convenient so you have everything in place. Best of luck at the auction!

 

And under NSW stamp duties laws one can sign the contract with settlement in both names or the other name - but check with your lawyer.

 

No sledge intended but take care that Jacquis excellent guidance is not legal advice and the best person to confirm this may be a solicitor and to check with the auctioneer / agent to avoid a failed bid etc. Just because the law permits something doesnt mean that the agent will agree also.

 

Thanks so much @Jacque!

I've asked my solicitor but it's always good to get a second opinion. The old adage "trust but verify"

 

The authority for auctioneer to sign went off without a hitch:

• Got the form from the auctioneer through the selling agent.
• Completed form with signature from my partner
• Took partner's ID to the auction

Only problem? Didn't get the property.

9 Boronia Avenue, Burwood, NSW 2134

Went for $2.46m with about 5 bidders. Blew right past what we were willing to pay for it.

Onto the next one

 

Better luck next time
Despite the doom and gloom I believe we've passed the bottom of this market- our experience here on the ground putting it Jan-April this year. We need more sellers!