When you purchase a property at auction, or exchange of contracts takes place on the same day as the auction, there is no cooling-off period.
Before the auction, the seller will set a “reserve price”. This is the lowest price the seller is willing to sell the property for. The property will be “passed in” at auction if the highest bid for the property is lower than the reserve price. The seller can then either proceed to negotiate a price for the property or can put the property back on the market.
If the bidding at the auction is higher than the reserve price then the property is sold “at the fall of the hammer”. If you are the successful bidder then you must immediately sign the contract and pay the deposit which is usually 10% of the purchase price.
1. Contact Key2 Conveyancing
Contact Key2 Conveyancing so that we can review the seller's auction contracts and give you advice in relation to the contract – this will be done within 24 hours of us receiving a copy of the contract from the seller's agent.