What should I do before bidding at an auction?
If you are buying at auction, you should ensure that all of your affairs are in order before you bid at the auction. This is because you will be bound by the Contract upon signing the Contract on auction day. We recommend the following steps:
- confirm the correct entity bidding at the auction and to be named on the Contract as Buyer - consider whether you will be purchasing the Property in your personal name, with another person, or a company or trust (if via a company or trust, you must ensure that you establish the purchasing entity before the auction);
- make sure that you will have sufficient funds to complete your purchase on the settlement date nominated in the proposed auction contract (e.g. by making enquiries of your financiers and financial advisors to confirm that all required approvals have been given on acceptable conditions, and that the required funds will be available);
- ensure that you will have sufficient funds to pay the deposit on auction day;
- inspect the Property and ensure you are satisfied with the state and condition of the Property - you should obtain any pest and building inspection reports before the auction;
- arrange for any searches to be done before the day of auction (with sufficient time for them to be returned); and
- review the draft contract and, if necessary, negotiate the terms of the Contract with the Seller so that the Contract can be amended to reflect your agreed terms prior to auction day;
Is there a Cooling-off period for auction purchases?
As the Buyer will not be entitled to any Cooling-off period, it is recommended to consider the above matters and provide instructions immediately. The Buyer also won’t be entitled to a cooling-off period if they are a registered bidder at the Auction and enter into a contract within 2 days of the Auction.
