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Power of Attorney and Lenders

Discussion in 'Property Finance' started by MsAli, 13th Oct, 2015.

  1. MsAli

    MsAli Well-Known Member Premium Member

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    Hi All,

    How do lenders, in particular Westpac treat power of attorneys?

    In a situation where the buyer is overseas and need someone else to sign the contract & loan documents on their behalf..

    Many thanks,
    MsAli
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I can't think of the last time I did this with Westpac, but I've handled this with a few other lenders and it hasn't been a big deal.

    The most notable thing was one lender asked for a full valuation specifically rather than a drive by. This leads me to believe that they do more due diligence on the application. In most cases this shouldn't be an issue.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    ANZ I have had no problems with in the past. No experience with Westpac, but CBA refused to accept loan documents signed by an attorney.

    The problem you will have is the applicant needs to disclose certain things and an attorney will not have the required knowledge.
     
  4. larrylarry

    larrylarry Well-Known Member

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    Yes me too, in particular St George. My broker told me I had to inform St George that I need power of attorney to sign loan documents in advance.
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    With Westpac you will need to send certified copies of the POA with the supporting documentation upon application submission so that once the mortgage documents are ready - they are sent to the POA for execution.
     
  6. larrylarry

    larrylarry Well-Known Member

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    I think the POA has to be registered with LPI since it's to do with property transaction.
     
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  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Yes definitely needs to be registered.
     
  8. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Bigger issue if the borrower is an entity. Hard for a POA to give a personal guarantee.
     
  9. MsAli

    MsAli Well-Known Member Premium Member

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    Thanks guys for the responses. Seems W'pac won't like the POA..

    Cheers!
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Ali hope you aren't relying solely on this thread as no one posting has said that. Best to confirm. - which you probably have
     
  11. MsAli

    MsAli Well-Known Member Premium Member

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    Cheers Terry. The lending manager said that to the person purchasing and I want to verify this further....
    Ta
    MsAli
     
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  12. Casteller

    Casteller Well-Known Member

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    I have bought and sold using POA and Westpac in the last 5 years with no problem, so it can be done.
     
  13. MsAli

    MsAli Well-Known Member Premium Member

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    Thanks for the info!
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Great reminder for anyone dealing with real property via a POA.

    You won't need it for the loan but to execute the transfer or signs contracts and leases registration is required to validate the dealing.
     
  15. MsAli

    MsAli Well-Known Member Premium Member

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    Hi Scott - apologies, I don't follow. Are you suggesting that loan cannot be signed by the person given POA?
     
  16. MsAli

    MsAli Well-Known Member Premium Member

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    Shahin, are you suggesting that the POA should have been provided when the application was first lodged? Ta
     
  17. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Yes the POA should be provided at the time of application submission - the mortgage centre has to prepare the mortgage docs and send it to the POA instead of the client. Westpac definitely do POA's so the branchie has somewhere along the way mixed up their wires.
     
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  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I guess there are 2 aspects

    Signing a transfer and contract for the sale of land - this is pretty straight forward.
    Applying for a loan - this is not straight forward because the applicant is the borrower and they must disclosure certain things, which the attorney may not know.
    Signing the loan documents - this will bind the borrower and lender and requires certain promises which lenders may not accept from an attorney.

    The attorney also has to consider the legal aspects for this. They can easily stuff up and be personally liable for the loan themselves and/or sued for breach of duties.

    The POA agreement should specifically give powers required to avoid doubt.
     
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  19. Scott No Mates

    Scott No Mates Well-Known Member

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    @MsAli - no issues with the poa signing for loans this is not a dealing with the property (the bank registers its own interest)
     
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  20. MsAli

    MsAli Well-Known Member Premium Member

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    Thanks for that Scott!