Purchasing a property at an auction can be an exciting way to buy a home. However, there are some legal aspects of buying a property at an auction that you should know before placing your bid. Here are a few things to keep in mind:
1. Research the property: Before bidding for a property, do research on the property and its surroundings. Make sure that the property meets your needs and requirements, and also consider its location, local market values, and any disputes or issues associated with the property.
2. Preparation: To participate in the auction, you may need to register with the real estate agent. You should also have your provide a deposit ready in case you are successfully. This deposit is usually a percentage (10%) of the expected purchase price. So, do proper preparation to ensure that you have the required amount of deposit with you.
3. Legal checks: It’s crucial to do a legal check of the property before buying it. Ensure that there are no legal restrictions or disputes related to the property that could affect your ownership rights. And the zoning and alike is in accordance with your intended use. Bond Conveyancing Property Lawyers can assist with this.
4. Contracts: Understand the auction contract terms and conditions carefully before bidding. You may want to consult with us to review the contract and advise you on the legal impact of the terms and conditions. Mention this post for a complimentary review.
5. Payment: If you are the highest bidder, you must pay the remaining amount in full within a specific time-frame. So, ensure that you have the required funds available to complete the payment and take legal ownership of the property.
Important to remember that buying a property at an Auction is an unconditional sale, that means you cannot have the purchase subject to any conditions and do not have a 3 day cooling off right.
As always if you have any queries or if we can be of any assistance, please don’t hesitate to reach out to our friendly team at Bond Conveyancing.