Buying at auction - the conveyancing process
With the property market still running hot, many properties in NSW are going to auction.
Understandably, auctions often make buyers a little nervous but with a little research and forward planning, you can be well equipped.
Here are our top tips for ensuring you are well prepared to buy New South Wales property at auction:
1. Seek legal advice prior to auction
You should get advice from a conveyancer or solicitor prior to attending auction. One of the important aspects of sale of property by auction is that there is no cooling off period.
That means that if you are the successful bidder, the contract becomes binding as soon as you and the vendor sign it.
For this reason, it is important that you have a conveyancer / solicitor review the contract before you bid – so you know exactly what you are buying and under what terms.
2. Have a deposit ready
Make sure you know how you will pay the deposit, as this will be due on the day.
If you need to negotiate the amount of the deposit (i.e. from 10% down to 5%) you should discuss this with both your conveyancer and the vendor’s agent prior to auction day.
3. Have unconditional finance approved
Ensure that you have the money in the bank or an approved loan! If your finance application is denied or delayed, you may be liable for hefty penalties to the vendor.
4. Make sure you have thoroughly inspected the property and arranged for professional inspections
It makes sense to have a good look at what you intend to buy. Beyond that, it is essential that you understand both the value and condition of the property. The following searches are recommended:
- pest inspection
- building inspection
- survey report
- building certificate.
Ms Deeds Conveyancing offers a thorough contract review prior to auction which includes professional advice and negotiation of the terms of the contract on your behalf.
This gives you confidence on auction day and ensures you know what you are signing up for!
We can also assist in explaining the entire process to you and ensuring you are ready to exchange if you are the successful bidder – not matter what time or day of the week you may go to auction.
For more information, contact Ashley on 0473 988 648.