All Topics / Help Needed! / Sheriff sales

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  • Profile photo of propertyboypropertyboy
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    @propertyboy
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    Anyone bought a property sold by a sheriff?

     

    im happy to take risk and buy sight unseen and appreciate the legal risks – however havent seen any recent listings. Anyone know when the next sydney/melbourne listings are coming on or when the auction will be?

    Profile photo of propertyboypropertyboy
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    Profile photo of crjcrj
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    @crj
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    I think your issue in Australia would be that unlike a sale for unpaid rates, any sale by the sheriff would still be subject to registered mortgages on the title.

    Profile photo of propertyboypropertyboy
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    That is fine, the price would capture the above in.

     

    That is if the property is worth 800k and mortgage is 400k, as long as I pay less than 400k im buying below market.

     

    Profile photo of propertyboypropertyboy
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    However, the question still is there:how do I find sheriff sales?

    Profile photo of TerrywTerryw
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    They will just be auctioned through various agents. you want find a website listing sheriff sales I’m sure. You also are unlikely to find a bargain.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of propertyboypropertyboy
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    Are you sure about that? My understanding was they are sold site unseen and the buyer has to take on the debt hence can’t go through normal auction process and same warranties around title arn’t provided hence cant use conventional bank finance until issues sorted

     

    The victorian sheriff auction lists properties but there is limited stock (only 2 at the moment)

     

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    My understanding was they are sold site unseen and the buyer has to take on the debt hence can’t go through normal auction process

    This is incorrect. All properties are sold either via Auction or Private Treaty.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of propertyboypropertyboy
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    Straight from the victorian government webpage:

     

    Who conducts a Sheriff’s auction?
    A Sheriff’s auction is conducted by a Sheriff’s officer, not a real estate agent or auctioneer.

    Sheriff’s auctions of real estate differ from usual auctions conducted by real estate agents/licensed auctioneers.

    A property can not be inspected prior to auction as the Sheriff does not obtain possession of a property as part of the sale process.
    A Sheriff’s auction does not operate under the Sale of Land Act 1962 and there is no requirement to provide a vendor’s statement under section 32 of the Sale of Land Act.
    Unless the court orders otherwise, the Sheriff has a duty to obtain a fair price. The Sheriff sets a reserve price, however, the reserve price is not disclosed.
    Interest in property
    A person’s interest may be subject to any other interests in the property registered on the title to the property at the time of the auction, including mortgages and caveats. These other interests are noted on the advertisement of property to be sold at the Sheriff’s auction.

    The extent of the interest being sold by the Sheriff will differ at each auction.

    Process following a Sheriff’s auction
    Prospective purchasers should note that different requirements apply following the completion of a Sheriff’s auction. In summary:

    A sale of contract will be entered into. This is not a standard form contract.
    On payment of the purchase price, the Sheriff provides the purchaser with a completed Transfer of Land form, which the purchaser can use to become registered as a proprietor of the property. The Sheriff does not provide the Certificate of Title.
    Payment terms vary from auction to auction – refer to individual contract for details.
    There are no adjustments made on the purchaser’s payment of the balance of the price.
    The Sheriff does not deliver possession of the property upon a sale.
    Stamp duty is payable on transfer of land from the Sheriff.
    Prospective purchasers at a Sheriff’s auction should obtain legal advice in relation to the effect of other interests registered on title.

    Profile photo of propertyboypropertyboy
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    clearly states is not sold by an agent or auctioneer but the sherif.

     

    Also states the property can’t be inspected prior and no s32 vendor statement.

     

    Profile photo of Steve McKnightSteve McKnight
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    @stevemcknight
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    Oh golly. Now you are plumbing the murky depths of my memory.

    I looked at this long, long ago in the hope of maybe picking up a cheap property, and here’s what I found:

    a. Most of the things sold are personal effects (cars, household stuff, not real property)

    b. I believe they must be auctioned, not sold privately

    c. Auctions used to be advertised in the classified ad section of the paper (I told you it was long ago!)

    d. The buzzards and opportunists come out at sheriff sales, so it is not necessarily bargain hunter’s paradise as prices can be bid up

    e. It is BIG TIME buyer beware! I forget… does the sale extinguish first mortgage interests? Hmmmmm. I would want to check and check again with my lawyer.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of propertyboypropertyboy
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    So did you buy anything steve?

     

    In other countries, cash buyers buy at big discounts as it knocks the retail market and is a bridge to a more liquid sale

    Profile photo of Steve McKnightSteve McKnight
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    @stevemcknight
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    Well, I normally do much, much better trying to buy at a fair price, rather than a cheap price.

    A couple of times I have bought a bargain, usually because the property has been mis-marketed, its potential not understood, or just lucky. For instance, I once bought a property the next business day after it went to auction with no buyers making a bid. It was a mortgagee sale and the bank signed it over for a song.

    I nearly bought a property with a letterbox drop, but after much back and forth, they took it to market.

    Never bought via a sheriff sale.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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