There's something about an auction that makes sensible people suddenly very competitive.
The bidding starts.
Someone raises their paddle.
You bid again.
Your heart rate increases.
Then suddenly:
SOLD!
Everyone claps.
And you've just bought a house.
Here's the part we want you to remember:
There is no cooling-off period when you buy at auction in NSW
If you're the successful bidder at a NSW property auction, you generally sign the contract and pay the deposit immediately.
There is no cooling-off period after buying at auction. The same applies where a property is passed in and contracts are exchanged on the same day as the auction.
That's why your legal work should happen before auction day.
Get the contract reviewed before you bid
Not Monday morning.
Not after you win.
Before you bid.
Your solicitor or conveyancer can review the contract and explain matters such as:
the settlement period;
deposit requirements;
inclusions and exclusions;
easements and restrictions;
title issues;
special conditions; and
anything else that may affect your purchase.
If changes need to be requested, they should ideally be negotiated before the auction.
Decide your maximum before you arrive
This isn't legal advice.
It's just good auction survival advice.
Decide your limit while you're sitting calmly at home.
Not while standing in a driveway surrounded by 40 people while an auctioneer tells you another $5,000 will secure your dream home.
Organise your inspections
You should also consider building and pest inspections before bidding.
For strata properties, a strata report can reveal information about the scheme, including its finances, levies, by-laws and potential building issues.
The NSW Government specifically recommends auction buyers investigate the property's condition, obtain relevant building and pest reports, review strata reports where applicable and have the contract reviewed before bidding.
Have your finance ready
Winning the auction and then discovering your lender won't finance the property is not a position you want to be in.
Make sure you've spoken with your lender or mortgage broker and understand your borrowing position.
And remember:
Pre-approval isn't necessarily unconditional approval for the particular property.
Before the hammer falls, call us
Buying at auction doesn't need to be frightening.
You just need to do your homework earlier.
Planning to bid at an auction?
Email the contract to Neilson + Co Legal before auction day.
We'll review it, explain the important terms and help you understand what you're agreeing to before you raise your hand.
Contact Neilson + Co Legal today to arrange your pre-auction contract review.