Auctions can be exciting, while also feeling fast, unfamiliar and overwhelming. Although the actual property purchase happens on the spot, there are many moving parts that need to happen behind the scenes prior to auction day. This is when you should be calling in the support of a trusted conveyancer (and we have a highly experienced one at Waters Lawyers!).
What actually happens at an auction?
An auction is a public sale of property, usually conducted by a real estate agent acting as an auctioneer where potential buyers can bid for a property. The reserve price is the minimum offer the seller is willing to accept for the property. However, auctions give the possibility for offers to go above and beyond the reserve price. In that case, the highest bidder wins and signs the contract on the spot. No negotiations (such as a longer settlement period). No cooling off period. Just a legally binding agreement, then and there.
Where does a conveyancer come in?
Are you considering bidding at an auction? If so, the ideal time to engage a conveyancer is now. Once you place a bid and it’s accepted, there’s no turning back. You’re legally committed to the purchase and it’s too late to ask questions about the contract or vendor’s statement.
This is how a conveyancer at Waters Lawyers can help:
- Review the Contract and Section 32
These documents are often filled with legal jargon, so it can be easy to overlook crucial information that may impact your willingness to purchase the property. This could include building restrictions, unpaid rates, current tenancy agreements, nearby development plans or other pertinent information to indicate the longevity and safety of the property, such as if it’s affected by floods or bushfires.
As your conveyancer, we go through all legal documents with a fine-tooth comb and flag anything that could be a potential deal breaker or need further investigation. If you let the agent know you’re interested in the property, they will forward you a copy of the contract which you can then pass on to us.
Please note that contract and Section 32 reviews may incur an additional fee. Speak to our conveyancer for a quote.
2. Remind you to get building and pest inspections before the auction
When buying at an auction, you’re agreeing to purchase the property ‘as is’. This means asking the seller to fix or change anything after the auction is off the table. As your conveyancer, we remind you early in the process to arrange any pre-auction inspections and can recommend trusted professionals if needed.
3. Request changes ahead of the auction
Sometimes, buyers are given the option to request contract changes ahead of time. For example, you might want to negotiate a longer settlement, adjust the deposit terms or even request items to include or exclude from the house. We can advise you on what’s reasonable and help communicate with the agent.
It’s important to keep in mind that the contract cannot be altered after the auction, so it’s best to ensure you’re comfortable with its terms in advance. The seller is not required to accept any changes you propose and may choose to proceed with the original version. If that’s the case, we can help you assess the situation and decide whether you’re still prepared to bid under the existing contract conditions.
4. Guide you through the post-purchase process
If you win at auction, we’ll guide you through what happens next, from deposit transfer to preparing for settlement. Our job is to ensure the legal side of the transaction runs smoothly and that you’re protected and supported throughout the process.
Is there really no cooling off period when purchasing a property at auction?
Really, really. Unlike a private sale, auctions offer no change-of-mind period. If you win, you must sign the contract and commit to the purchase. If you find something concerning in the contract after the auction, it’s too late to back out without serious legal and financial consequences. You can read more about the fine print of cooling off periods in our blog here.
How can I get in touch with a conveyancer at Waters Lawyers?
If you’re looking at a property going to auction, getting in touch early gives us time to review the legal documents, flag concerns and guide you with clarity and confidence.
We know auctions can be daunting, especially for first home buyers. But with the right advice and preparation, they don’t have to be. To speak with our conveyancer, please phone our friendly reception team on (03) 5996 1600 today.
