Auction Day

[PEI]

Can someone please tell me what are the conditions of sale on Auction day?

Do you have to sign the contracts that day and can you put an out clause in the contract?
After you have the highest bid can you still make the sale subject to building approval and finance?
Do you still get a 5 day cooling off period?

I have not purchased at auction previously but will be making a bid for a property on Saturday. From my own inspection there is structural damage but still need to investigate how much and the cost to repair. I also need to get approval for finance but do I need to get both of these sorted prior to auction?

 

[JoannaK]

hi Mark,

generally, on auction day if the hammer falls in your favour you are the buyer and you can not 'get out of it', ie, there is NO cooling off period - that is a key difference of auction versus private treaty sale. Incidentally, if the hammer doesn't fall (if the property is passed in), and you negotiate privately after the auction but on the same day of the auction up until midnight, it is still deemed to be auction conditions, therefore no cooling off period.

the contract will not be subject to finance or a pest and building inspection as it is generally considered that all these things will be arranged during the weeks leading up to the auction.

You must pay your 10% deposit when you sign the contracts (or whatever deposit has been negotiated with the vendor prior to the auction commencing). If you refuse to sign the contract the auctioneer has the power to sign the contract on your behalf.

hope this helps!

 

[PEI]

Thanks Joanna that helps a great deal.

 

[Aceyducey]

BTW - you can submit contract conditions prior to the Auction, however it's at the vendor's discretion if they allow you to bid under them.

Cheers,

Aceyducey

 

[BV]

PEI

There is some good advise here
http://www.somersoft.com/forums/showthread.php?t=14705

Also Don't forget to check this page from the dept of fair trading out.
http://www.fairtrading.nsw.gov.au/realestaterenting/buyingselling/buyingatauction.html

 

[PEI]

Thanks for the links BV.