Buying property at auction in New South Wales can be an exhilarating experience, but it comes with strict legal rules that every buyer should understand. At Unbundled Law, we help clients navigate auction purchases safely, ensuring they know their obligations and rights before the hammer falls.
The Key Difference: No Cooling-Off Period
Unlike private treaty sales, properties sold at auction do not include a cooling-off period. Once the auctioneer declares the property sold, the buyer is legally bound to complete the purchase and pay the deposit, typically 10% of the purchase price.
Preparation Before Auction Day
Preparation is essential to avoid last-minute stress. We recommend clients:
- Have the Contract Reviewed – We check for risks, inclusions, and special conditions.
- Obtain Finance Approval – Ensure you have pre-approved finance in place.
- Conduct Inspections – Building and pest inspections can reveal hidden problems.
- Understand Deposit Requirements – Be ready to pay immediately if successful.
- Know Your Legal Obligations – Understand exactly what happens if you win or fail to settle.
Why Professional Advice Matters
At Unbundled Law, we advise clients on:
- Interpreting auction terms and conditions
- Legal consequences of winning at auction
- Strategies for protecting deposits and avoiding disputes
Without expert advice, buyers may risk losing their deposit or facing legal action if they cannot proceed with settlement.
Post-Auction Process
After a successful bid:
- The contract is signed and exchanged immediately.
- The deposit is paid.
- Settlement is organised, usually via electronic transfer through PEXA.
Our team coordinates with your lender and other parties to ensure settlement runs smoothly, protecting your legal rights.
Buying at auction can be exciting, but it also requires careful planning. Unbundled Law is here to guide you through every step, making sure you enter the auction room confident and fully prepared.
