As some Vendors sell their property by auction, there are a number of benefits for the buyer to engage a conveyancer before the bidding starts.
Buying at auction can also have its benefits – including snapping up a bargain. But buyers must be aware that if they are the successful bidder on the day, they are locked into the contract and bound by its terms – there is no cooling off period, no changes can be made to the contract and a deposit must be paid to the Real Estate Agent on the day. So for buyers that are interested in a property that is going to auction, it makes sense to engage a conveyancer prior to the day of sale to help with a range of services:
- The winning bidder at the auction has to sign the contract there and then. Having a conveyancer check the contract beforehand to ensure there are no special clauses or issues is smart. A conveyancer can do all the checking prior and ensure the auctioneer is aware of any changes to the contract prior to the auction going ahead.
- There is no cooling off period and no changes to the contract can be made after auction contracts have been exchanged, so with no prior contract reading occurring, the buyer is locked in if they are the highest bidder
- Prior to auction, pest and property inspections should be undertaken – a conveyancer can arrange all of this and ensure there are no issues highlighted from these reports. –
- If the property being purchased is part of a strata, it is a good idea to have a strata inspection report done and checked prior to purchase to consider such things as sinking funds, levies, debts owing and more.
- A buyer at auction must be ready to exchange and pay 10% deposit at the auction. Conveyancers can arrange amendments – such as reduced deposit (5%) or a deposit guarantee – prior and ensure the auctioneer is aware
Ensuring all the boxes have been ticked in preparation will mean a smooth (and probably less stressful) auction process.
In addition, at Tracey Warden Conveyancer we offer an added source of support – attending the auction with our clients if they’d like us to. For more information on buying at auction or to ask questions, please contact us.