In what appears to be a pretty heated property market in Sydney and indeed throughout NSW, the lawyers here at ClickLaw often hear stories of people who plan on attending an auction on a Saturday without having first had the contract for sale reviewed by a lawyer or a conveyancer. In most cases, these would be purchasers also fail to carry out any other due diligence on the property, such as a building and pest inspection, a strata inspection report (if buying a unit) or reviewing Council’s file on the property.
We cannot stress enough how important it is to ensure that the contract is reviewed before you attend the auction and all other pieces of due diligence are completed. This may be the property you make the winning bid for and it is too late to find a lawyer or conveyancer on Monday morning to review the contract. If you make the highest bid on the day of the auction or if the property is passed in but you later negotiate to buy the property on the same day as the auction, there is no cooling off period. You are therefore bound to complete on the property, despite any issues that may later be found with the contract or the property itself.
Even though you may attend 5 or more auctions before successfully purchasing a property, it is essential to have the contract reviewed prior to auction with any amendments negotiated before the auction together with completing your other due diligence. The small financial outlays prior to an auction may save you a lot of money and grief down the track.
If you are planning on attending an auction and would like a pre-auction contract review carried out by ClickLaw, please contact us via the website or by email or phone and we would be happy to assist you be ready to be in a position to bid at your upcoming auction.
John Kettle – Solicitor Director