Join Australia's most dynamic and respected property investment community

Bidding for brother

Discussion in 'The Buying & Selling Process' started by albanga, 4th Mar, 2016.

  1. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,118
    Location:
    Melbourne
    Hey All,

    Tomorrow I have been asked to bid at auction for a property for my brother and his fiance.
    Apart from knowing there limit what other considerations are there?

    Does the agent need to know at the time of bidding I am for a 3rd party? Or only if successful in the signing of contracts?

    Any advice would be greatly appreciated.
     
  2. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    519
    Location:
    Sydney
    Hi @albanga you will need a letter of authority from your brother (and his finance if her name is to be on the contract) before you can register to bid. Depending on the agency, you can actually pre-register so perhaps find this out today, so you don't have to get there early tomorrow. Good luck!
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,037
    Location:
    Sydney
    Will the bro be there with you>
     
  4. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    75
    Location:
    Melbourne
    If you're bidding in Victoria and you win, you have two options:

    1. Sign the contract in your name, then complete the nomination paperwork so that the property is ultimately owned by your brother and his partner. You are still legally on the hook, however, for the contract to be completed.

    2. Organise a general power of attorney ASAP, which your brother gives you so that you can fill in and sign the contract in his name, as his attorney (avoiding the nomination).

    The agent doesn't need to know anything, although if you go with option 2, you need to bring along a certified copy (or original) of the power of attorney to show the agent when you sit down to sign the contract.

    Good luck!
     
    Leo2413, S.T and Propertunity like this.
  5. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    75
    Location:
    Melbourne
    Actually in Victoria, you don't need to register to bid at an auction, unless it's a boardroom-style / silent auction scenario.

    A letter is insufficient: it must be a duly executed power of attorney, or a purchase via a nomination, as detailed in my last post.
     
  6. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,118
    Location:
    Melbourne
    Thanks for all the feedback.
    Just got the call i am no longer required as they just received an offer over what my brother and finance were willing to offer.
    Good to know the process though for the future.

    I just wasted 30 minutes of my life doing arm raising exercises to get warmed up as well.
     
    Azazel, Jacque and Big Will like this.
  7. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,569
    Location:
    Melbourne, Australia
    Maybe try tennis as the next career either that or darts might have good use of raising an arm
     
  8. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    519
    Location:
    Sydney
    Oops my bad- speaking as a NSWelshwoman :D
    @albanga arm raising-exercises are never wasted. You can always put them to good use by hanging out washing LOL.
     
  9. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,118
    Location:
    Melbourne
    Haha well I just got a letter from Jemena telling me to cut down a tree which is interfering with power lines. So I'm all raring to go now!
     
    Jacque likes this.
  10. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Haha, awesome.
    What was your preferred technique, the slight point or the did my hand go up it was down so fast?