Serious structural defects and cancelling auction contracts (VIC)

Hi all.

So I have found an older style house I wish to buy but it is going to auction - darn auctions!! As it is free standing and probably about 50 years old it seems pertinent to undertake a building and pest inspection, however I'm really not keen on forking out $600 in advance of an auction I have an unknown (but likely slim) chance of winning.

So, what I was hoping someone could advise me on is the purchaser's rights re: cancelling an auction contract (ie: unconditional) after signing due to a major structural fault or severe infestation. Is this reasonable grounds to cancel or does the whole unconditional thing completely negate this?

Secondly, what are the vendor's responsibilities to disclose defects? If they are asked outright if any are known, do they have to disclose and what are the repercussions if they fail to disclose and they are found after contract signing?

Thanks so much for any guidance. I know to some people spending the $600 prior is worth it, but to me it's a massive waste of money in the current market where we're likely to be out-bid on the day.
 
Hi all.

So I have found an older style house I wish to buy but it is going to auction - darn auctions!! As it is free standing and probably about 50 years old it seems pertinent to undertake a building and pest inspection, however I'm really not keen on forking out $600 in advance of an auction I have an unknown (but likely slim) chance of winning.

So, what I was hoping someone could advise me on is the purchaser's rights re: cancelling an auction contract (ie: unconditional) after signing due to a major structural fault or severe infestation.

As a buyer at an auction you have almost no rights as the sale is unconditional.

Caveat emptor.

http://www.consumer.vic.gov.au/CA256902000FE154/lookup/CAV_publications_RealEstate_Buying_and_Selling_a_Home/$file/realestateguide.pdf
 
So, what I was hoping someone could advise me on is the purchaser's rights re: cancelling an auction contract (ie: unconditional) after signing due to a major structural fault or severe infestation. Is this reasonable grounds to cancel...?

No.

Skuri said:
I know to some people spending the $600 prior is worth it, but to me it's a massive waste of money in the current market where we're likely to be out-bid on the day.

Then look for a property that is not likely to need building/pest inspections, or in a suburb where there is less competition, or where the property is for private sale.
 
I'm with you, Skuri - I loathe auctions! I can't understand how the industry has gotten so many people to agree to sell via auction, and even more amazingly, has gotten so many people to buy via auction. Victoria is the auction capital; thankfully I'm in Queensland where auctions are far less common. :cool:

As JIT has said, unless the vendor will look at pre-auction offers, and you have time to go unconditional prior to the auction date, this property may not be available to you.
 
Then look for a property that is not likely to need building/pest inspections, or in a suburb where there is less competition, or where the property is for private sale.

Ah yes, now this is sensible of course, and you're right because it seems I can't do anything about being unconditional. However, the problem is I'm looking at this as PPOR and fell in love, which I have NEVER done before, and of course never attach myself emotionally to an IP. This area doesn't have stiff competition really, which is one reason why we're buying there. Still, it only takes two bidders - and one with deeper pockets than the other :)

Thanks though. Any more thoughts anyone?
 
Yes, having to fork out money by getting building inspections so the Vendor can have an auction is frustrating. Still apart from the ACT noone else seems to be active in doing anything.
 
If you plan on this property being a PPOR, and you have fallen in love with it, then $600 would seem to be worthwhile to find out exactly what condition the property is in. Then you can bid with confidence, and if you miss out you will have given it your best shot.
Marg
 
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