A Whitebridge home on Burwood Road was on the verge of sale on Wednesday night

A palatial property on Whitebridge’s coveted Burwood Road was the subject of an ongoing auction negotiation on Wednesday evening which could result in a record sale for the suburb.

Killara, set on 8631 square metres at 30 Burwood Road, was the feature item of a public auction night held at Watt Street Commercial Centre.

The property had been marketed with a price guide of $4.7 million to $5.15 million.

The previous record for a sale in the suburb was $3.45 million, according to PriceFinder data.

The bidding opened at $3 million for Killara on Wednesday night and went between two registered bidders before being suspended at $3.6 million. Negotiations continued well into the evening and were at last report over $4 million.

Killara was reported in the ​Newcastle Herald as being once the home of former James Estate wine and print entrepreneur David Anthony James. 

The Herald previously reported Mr James lost a multi-million dollar tax battle in 2012. A group of 12 companies in his empire collapsed in 2013 with reported debts in the tens of millions of dollars.

The five-bedroom house has four marble bathrooms, a chef’s kitchen constructed from Tasmanian oak with Corian benchtops, a garage for 10 cars, wrap-around sandstone verandah, central internal courtyard, a guest house with stables and a 15 metre saltwater pool lined with glass tiles.

The trophy home of the fallen wine entrepreneur has two other, less desirable features: two caveats that were placed on the title in 2016.

Mr James' mother, Irene James, placed a caveat on the home in August 2016.

According to documents, Wallsend lawyers Benjamin O'Hearn and Bruce Heathcote were appointed by the Family Court as receivers to sell the property.

It is understood Mrs James loaned money to the receivers for them to make mortgage payments on the house to AMP Bank.

A second caveat was taken out by the receivers in the Supreme Court in July 2016. It is not known how much is owed.

The property is owned by Mr James' wife, Trudy Douglas. In 2003, Ms Douglas took out a mortgage on the property with AMP Bank for $2.7 million. Records show it last sold for $2.2 million in 2002.