Hello again,
New scenario
if i have a seller who is selling property (A), to be abel to buy property (B) (do not know if he’s selling for serviceability or cash required for settlement on the new property)
Could i get a limited power of attorney on property (A) with a caveat registered on the title (meaning i control the property, he’s still on title and mortgage is still in his name), would he be able to purchase the new property? if not is there any ways around this? wording i use perhaps?
thoughts anyone?
and would their be a problem doing it this way for a long term investment?
The seller could appoint you attorney with a limitationn to dealing with the property. However you would have a fiduciary duty to act in this best interests unless the deed specifies otherwise. You could lodge a caveat if he gives you permission or if you sign a contract to purchase (or otherwise have an equitiable interest in the property).
Neither of the above would prevent him from buyer another property though.
What are you trying to do?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
I’m trying to buy a property cheaper then the traditional way (if possible). thus being i would save on stamp duty. wouldn’t have to get a loan and so on.
i feel that if i had a POA and the bank giving him finance for property (B) when they see that he’s still on the title and mortgage of property (A), he wont be able to get finance, as the bank will see it as a liability.
even know i would have the rights / control over the property and he wouldn’t have anything to do with it anymore. on paper the bank would still want to see that he could service both mortgages?
If it is still in his name then you haven’t bought it. You may be able to create an equitable interest in the property, but would not be legal owner without title.
Don’t confuse ownership with loans. If he is on title he may or may not have a loan. If he has a loan, ie is a borrower or a guarantor then this is a liability which will be taken into account by the bank..
You could create some rights over the property but that would not change the fact that he has a loan and is the legal owner. Bank wil want to make sure he can service both mortgages
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
I think my wording was a bit wrong when i said “buy” but yea thats what i thought. so he would have to show that he could service both mortgages.
Cheers, Tom
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