Worth the risk?

Hello,

There is an apartment that we like going up for auction in a few weeks. It is out of our price range by quite a bit. Being a little bit optimistic, I want to go to the auction just in case. The vendor is apparently an elderly man who has moved interstate already so maybe there's a chance he could be eager to sell. How risky is it for us to bid without having the contract checked out beforehand? It is an apartment so would be less risky than buying a house in the same way. I don't want to pay our lawyer $250 to look at it when in all probability, we likely won't get it. We have a "back up" property in mind if we don't get it.

Thoughts?
 
There's always some risk with buying at auction. I'd suggest that a lot of people don't property have the contract checked out. Likewise most don't get building & pest inspections either. As you say, the cost is significant given that only 1 person of 10 interest will ever by the property.

I don't know what the legal concequences are in the ACT, but the chance of there being a critical problem are fairly low. A critical problem could however be a very expensive one and a complete disaster.

There is some concern that you're saying it's out of your price range. If you can get it for a bargain within your price range that's great, but don't go for something that you can't afford or won't be able to get finance for.
 
If it sells in your price range will it be because it's a bargain or because there's something wrong that everyone who has done DD is aware of but you're not? You make the call...
 
All for saving $250?????

Good luck with that approach.

Crossing fingers and hoping does not constitute good legal advice.
 
If you can't afford the $250. You can't afford the property.

That is all part of the buying cost.

Also if it is going to fall within your budget at auction, (which I assume is your absolute limit which I would suggest against). The inspections and reports should make up part of that cost.
 
I know it seems silly. I guess I will fork out for the lawyer even though we probably have a ~5% chance of getting it :p

Have just paid for two contracts to be checked over recent weeks and we missed out on them (which were much closer to our budget) so it does add up. Will probably be the last one if we don't get it anyway as we will just go for our back up.
 
Many lawyers wouldn't charge any extra to look at a contract if you don't proceed.

What if there is a special condition in there that is to your disadvantage for example. How do you add your own special conditions etc.
 
No offence but realistically what is the solicitor likely to pick up that you wont? If there is something in there your not sure about just send them an email and ask for the opinion or ask on this forum. Solicitors are a bit over rated when it comes to property transactions so long as your well informed yourself and don't need to add anything to the contract.
 
No offence but realistically what is the solicitor likely to pick up that you wont? If there is something in there your not sure about just send them an email and ask for the opinion or ask on this forum. Solicitors are a bit over rated when it comes to property transactions so long as your well informed yourself and don't need to add anything to the contract.

GST is one thing easily overlooked (may not usually apply in residential, but could). Land tax adjustments is another. I know of someone who ended up having to pay $150k in GST on a residential property because they overlooked something in the contract.
 
GST is one thing easily overlooked (may not usually apply in residential, but could). Land tax adjustments is another. I know of someone who ended up having to pay $150k in GST on a residential property because they overlooked something in the contract.

But they saved $250. Surely that's more important.
 
If the property is in the ACT the vendor has to supply a building and pest inspection report. You can request that off the agent.

Also, many vendors will be happy to supply the body corporate notes free of charge if you just ask. The risk though is that they will be missing some. But even if you just get the last couple of years worth it should mention any problems with the building which would be the expensive thing if there's anything wrong with it.
 
What about out so body corporate issues? There may a deficit in the budget, approved but started major repairs or other issues.

If you're not prepared to spend $250 don't buy the property. You must be prepared to pay for advice.
 
How risky is it for us to bid without having the contract checked out beforehand? It is an apartment so would be less risky than buying a house in the same way. I don't want to pay our lawyer $250 to look at it when in all probability, we likely won't get it.

Please tell me you're kidding.... sorry but I'm speechless :eek:
 
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