Why the timing matters
A successful bidder at a NSW property auction is ordinarily bound when the contracts are signed and exchanged. There is generally no statutory cooling-off period after an auction. Finance approval, legal review, inspections and negotiation of proposed changes should therefore occur before bidding—not after the hammer falls.
The contract is only one part of the exercise. The title, deposited or strata plan, easements, covenants, planning material, zoning certificate and any special conditions may affect how the property can be used, renovated or financed.
The contract review
A review should identify the settlement period, deposit requirements, inclusions, adjustment provisions, default interest, vendor disclosure documents and any terms that shift an unusual risk to the purchaser.
- Confirm the legal description and registered owner
- Check easements, restrictions, covenants and rights of way
- Identify unapproved structures or work disclosed in the contract
- Review proposed amendments before the auction
- Check whether vacant possession or an existing tenancy is promised
Finance and inspections
A lender’s pre-approval may be conditional and is not the same as unconditional approval for the particular property. The purchaser should also arrange appropriate building, pest or strata investigations. A legal contract review does not establish the physical condition of the property.
Before bidding, agree on the maximum price, confirm the deposit can be paid as required and ensure the proposed purchaser name and ownership structure are correct.
Practical next step
Send the complete contract as early as possible and state the auction date. If amendments are required, the vendor’s solicitor should have time to consider them before bidding begins.