Properties purchased at auctions don’t come with a cooling off period. So, if you’re considering bidding at auction, now is the perfect time to seek the help of a trusted conveyancer.
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.
How can a conveyancer at Waters Lawyers help?
We can support you to ensure the property you’re bidding for is what you expect (and, of course, be there to celebrate if successful!).
- Review the Contract and Section 32
Without a conveyancer knowing what to look for, it can be easy to overlook crucial information in these documents as they’re often filled with legal jargon. Within them could lie details of potential building restrictions, unpaid rates, current tenancy agreements, nearby development plans or other pertinent information about the longevity and safety of the property (like 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
Buying at auction means agreement to purchase the property ‘as is’, so 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 the necessary pre-auction inspections and can recommend trusted professionals if needed (especially if purchasing in the Cranbourne area).
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.
The seller is under no obligation 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.
Again, the contract can’t be altered after the auction, so being comfortable with its terms in advance is important.
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.
To speak with our conveyancer, please phone our friendly reception team on (03) 5996 1600 today.
