When individuals undertake the conveyancing process for a traditional home purchase, there are a number of different processes involved, and protections offered, to ensure a fair outcome.
At auction though, the process is slightly different, and there are fewer protections for buyers once they commit to making a purchase.
The main difference that exists between the two purchasing options is the cooling off period. While property buyers usually have a guaranteed period of time during which they can cancel the purchase of a property, at auction there is no cooling off period.
This places a greater level of responsibility on the buyer – they need to be sure that when they make the highest bid for a property at auction that they are prepared to enter into a binding agreement to make the purchase.
This extends to other aspects of the purchase as well. For example, buyers will need to ensure they have conducted a thorough inspection of a property with an expert, in order to detect any structural issues. They will also have to be sure they have all of their financing in place before making a winning bid.
The cooling off period will also be waived in a situation where a property is unsuccessfully listed at auction, but is then purchased by private treaty within two days by one of the parties registered at the auction.
Finally, individuals buying at auction will need to ensure they have the sales contract looked over by a conveyancing lawyer. They will be able to ensure that this document has been properly constructed and does not unfairly benefit one party.
If you would like to know more about the conveyancing process, especially at auction, please contact our conveyancing team.