Are settlement dates just as open to negotiation for auctions (after winning)?

[jerrybee]

If I win at an auction (deceased estate), and I need to extend settlement, is there any reason to think it would be harder to negotiate than a regular auction or regular sale? Of course it's ultimately up to the seller whether they want to grant it, but I'm wondering if there's anything about A) auctions in general or B) deceased estate auctions that makes this request different?

I probably won't need it but just want to cover all my bases before I go in!

 

[HD_ACE]

Negotiate favourable settlement terms before the auction. Assuming they dont have the 30/60/90 day choice in there.

Cheers

 

[Player]

If I win at an auction (deceased estate), and I need to extend settlement, is there any reason to think it would be harder to negotiate than a regular auction or regular sale? Of course it's ultimately up to the seller whether they want to grant it, but I'm wondering if there's anything about A) auctions in general or B) deceased estate auctions that makes this request different?

I probably won't need it but just want to cover all my bases before I go in!

You are buying under auction terms and conditions, whether deceased estate or traditional auction sales process. Once the hammer falls if you are successful you need to abide by the auction terms. If you cannot settle on time (particularly if lenders aren't ready), you could always try and negotiate a slightly longer settlement period, however there is no obligation on any seller/vendor to grant this. In the event you cannot settle on time, then you will be in default and would be exposed to the consequences of each state's relevant property laws and penalty. It can get costly from a legal perspective moving forward. Deceased estate MIGHT have more leeway as there is far less likelihood of a concurrent settlement occurring at the seller's end, that is sometimes the case with traditional sellers going to auction. A few days delay due to banks/lenders not being timely isn't an uncommon event.

 

[jerrybee]

Deceased estate MIGHT have more leeway as there is no concurrent settlement occurring at the seller's end, that is sometimes the case with traditional sellers going to auction. A few days delay due to banks/lenders not being timely isn't an uncommon event.

Ok thanks. This is what I was trying to find out. I know missing settlement date is a very serious thing, but I wanted to know whether the dynamics are any different for deceased estate auctions. Like maybe if the bank was the seller they might be less lenient...stuff like that. Thanks

 

[Terry_w]

If I win at an auction (deceased estate), and I need to extend settlement, is there any reason to think it would be harder to negotiate than a regular auction or regular sale? Of course it's ultimately up to the seller whether they want to grant it, but I'm wondering if there's anything about A) auctions in general or B) deceased estate auctions that makes this request different?

I probably won't need it but just want to cover all my bases before I go in!

Too late to start negotiating. Upon the fall of the hammer you are in a binding contract under the terms of that contract.

These terms can all be negotiated before hand.

 

[jerrybee]

Too late to start negotiating. Upon the fall of the hammer you are in a binding contract under the terms of that contract.

These terms can all be negotiated before hand.

Yup I know that, maybe I worded the question poorly. I was trying to find out whether it's any different for A) auctions or B) deceased estate auctions. E.g. maybe the bank might be less lenient than normal. Or is it basically the same deal - the seller is no more or less likely to grant one than a normal sale. From what I gather in this post my assumption is right and that it's no different.

 

[Terry_w]

Yup I know that, maybe I worded the question poorly. I was trying to find out whether it's any different for A) auctions or B) deceased estate auctions. E.g. maybe the bank might be less lenient than normal. Or is it basically the same deal - the seller is no more or less likely to grant one than a normal sale. From what I gather in this post my assumption is right and that it's no different.

With a normal auction you will be dealing with the owner, so emotions can come into things. With a deceased estate you are dealing with family, who generally don't care as much as the owner would, and they are generally eager to get their money quickly - virtually while the deceased is still warm in cases.

 

[Paul@PFI]

Its not unlike the deposit. Contract might usually say 10%...Negotiate 5% before might often be OK. Wouldnt want to find after winning auction bid that they wont budge. .

 

[Aaron_C]

I've found most vendors don't really care about the settlement date as long as they get the price they want.

 

[impala67]

I've found most vendors don't really care about the settlement date as long as they get the price they want.

What about when they have "terms" in the auction advert.

Do you find that most still negotiate the terms?

 

[jerrybee]

Ok I just called the agent. They said they are happy to extend settlement dates before auction.

I would still have been curious to know though. I like to learn all the nuances between auctions vs. deceased vs regular sales. Good to have every possible angle covered

 

[Peter_Tersteeg]

It's generally best to negotiate prior to the auction.

At an auction, if you are the highest bidder and it's on the market, you've bought it under the terms stated in the pre-amble or otherwise negotiated.

The reality is that this can be very difficult to enforce until you've actually signed the contract. You could be sued if you refuse to sign, but it would need to be a significant purchase price to make it worth while. People have been sued over this, but you'll usually find the vendor becomes somewhat flexible if your approach it reasonably.

If the auction is passed in to you, the settlement terms are very negotiable.

In either case, you can't negotiate special conditions such as finance or building inspections.

 

[spludgey]

You could check what the contract says about consequences if you don't settle on time. Would it be worth it for you to prolong it a bit? I once did it for a week and had to pay 10% pa for it, so not that bad.

 

[Aaron_C]

What about when they have "terms" in the auction advert.

Do you find that most still negotiate the terms?

Usually they have something with 30 / 60 / 90 and you just circle the one that suits you after the auction. Never been an issue for me but that's how VIC works. I know NSW is different.

 

[LexCon]

Hi jerrybee,

The answer to your question is no. The only deference is instead of negotiating with the vendor you will be negotiating with the executor/s of the deceased estate. They are no more or less likely to accept a change to settlement date than any other vendor.

There is no complication.