If you are planning on purchasing a property which is being sold via auction and you have never purchased through an auction you may be unaware that any purchase under auction conditions is unconditional. An unconditional sale means you cannot make the purchase subject to anything. This means the purchase will not be dependant on; a building or pest report, a valuation, completion of another sale, or possibly most importantly having your finance approved. Unlike other contracts there is no cooling off period so once the auction is completed and the contract is signed you cannot change your mind.
If you are planning on purchasing from auction there are a few things we would recommend you do in order to have a hassle-free settlement.
- Prior to the auction it is a good idea to inspect the property and if you are worried about anything arrange to have a tradesperson attend with you
- Become familiar with the contract and understand all the key details and conditions such as, the deposit, settlement date, and any excluded or included property. This will save you from surprises on auction day.
- One of the most important matters to attend to before the auction is to make sure that you have finances available for the purchase whether that be cash or through a loan. If you are gaining finance via a loan it is best to have approval before making a bid on the property to avoid the possibility of not being able to afford the property and being charged damages and the forfeiting of your deposit; and
- Read through the Form 1 (which the agent must have on display prior to the auction) to check that there are no surprises!
If you have purchased a property through auction or are planning on purchasing through auction and are unsure of what to do, one of the solicitors from our conveyancing team at Kelly Kelly Legal would be happy to discuss your options with you.
This article was written by Nick Rowe.