Everything You Need to Know About Buying a Property at Auction
Buying at an Auction brings with it some challenges that are not faced under the normal property purchasing process.

The following information gives a brief outline of the major steps in buying at an Auction.

This information is for general purposes only and does not constitute legal advice. For more information and a FREE first consultation please contact us today.

Stacks Image 743

No Cooling Off Period

When purchasing at Auction you do not have a cooling off period. That means if you are the successful bidder you are committed to paying the deposit and signing contracts on that very day.

It is therefore very important to get a number of things done prior to bidding at an Auction, including arranging your finance, appointing a solicitor and inspecting the property thoroughly.

Get your contract reviewed by a solicitor - for FREE

Because you must exchange contracts and pay the deposit immediately after winning an Auction it is essential that you have your solicitor review the contract before you bid.

Once you sign the contract you are bound by it so make sure it suits your needs by having your solicitor review your contract prior to Auction day.



Mothers in Law Lawyers will review your contract prior to Auction free of charge. Click here for more info.

Organise Finance

Make sure you have your finance approved and make sure your maximum purchase price is in line with the true value of the property.



You will be contractually obliged to proceed with the purchase of the property even if your lender withdraws their finance or places a lower valuation on the property than the auction price.



This is also a reason to do your homework before bidding at Auction.

Homework

Do your homework and research the prices that other properties have sold for in the area.

This sounds like very obvious advice, however, it simply must be stated. Don't go to an Auction and bid on a whim, unless you have knowledge of the area.

Get a Building and Pest Inspection

Again, once you are the winning bidder you are committed, so before bidding make sure there are no defects with the property that would either stop you from wanting to buy it or reduce the price you are willing to pay.

The safest way to ensure there are no major problems is to pay for a building and pest inspection.

Without one you may be paying too much.

The downside is if you are not the highest bidder you will have paid for these inspections and you will have nothing to show for it.

Pay the Deposit & Exchange Contracts

If you are the highest bidder you will be required to pay a the deposit immediately and provide the details of your solicitor - hopefully us!

Make sure you take your personal cheque book with you to the Auction.

Signed contracts will then be exchanged between you and the vendor.

Settlement Period

Usually 42 days from the date of exchange. During this time your solicitor will conduct searches and liaise with all parties and banks to arrange settlement.

Final Inspection

Before settlement you will do a final inspection to ensure the property is in the same condition as when you signed the contract. Check all fixtures and fittings listed in the contract are still in the property.

Organise Insurance

The risk of damage to the property passes to the purchaser immediately upon settlement. Therefore, for non-strata properties, you may want to organise insurance before completion.

Settlement

This is also sometimes called completion, is when ownership is officially transferred to the purchaser. Cheques and Title documents are passed between the parties and their banks.

Pick up the keys

After settlement your solicitor will call to let you know everything has settled. They will also contact the agent to tell them to release the keys to you and release your deposit to the seller.
Free review of contract


What our clients think:
My experience with Stacey Nadel was exemplary. Stacey was conscientious, efficient, timely & above all was a delight to work with as well as being priced very competitively. 
Joy
Thank you so much for the professional service you provided. You answered our many questions with patience and understanding, no matter how small. Your level of communication and immediate response was fantastic, making us feel informed and in control, reducing the stress we felt at such a busy time in our lives.
Daniel & Niza

Conveyancing Locations

Mothers in Law Lawyers can assist with your conveyancing all over NSW and we regularly help local clients in the following Northern Beaches Suburbs:

• Allambie Heights • Beacon Hill • Brookvale • Collaroy • Collaroy Plateau • Cottage Point • Cromer • Curl Curl • Dee Why • Freshwater • Ingleside • Manly Vale • Narrabeen • Narraweena • North Balgowlah • North Curl Curl • North Manly • Queenscliff • Wheeler Heights • Balgowlah • Balgowlah Heights • Clontarf • Fairlight • Manly • Seaforth • Akuna Bay • Avalon • Avalon Beach • Avalon North • Barrenjoey • Bayview • Bilgola • Bilgola Beach • Bilgola Plateau • Bungan Beach • Careel Bay • Careel Head • Church Point • Clareville • Elanora Heights • Ingleside • Ingleside Heights • McCarrs Creek • Mona Vale • Narrabeen • Newport • Newport Beach • North Narrabeen • Palm Beach • Paradise Beach • Salt Pan Cove • Sand Point • Scotland Island • South Warriewood • Turimetta • Warriewood • Warriewood Beach • Whale Beach