There is no going back at auction
Auction sales have no cooling-off period, and some deals made before or after an auction lose it too.
When the hammer falls the contract is binding. Cooling-off rights can also be lost on some pre-auction and post-auction deals.
Cooling-off is the short window after signing in which many buyers can withdraw. It does not apply to a property sold at auction.
Some deals struck before or after an auction can also lose the cooling-off period. The detail depends on the state and the circumstances, which is why it matters to ask before you sign anything.
That's why your finance, your building and pest inspection and the contract review all have to be done before auction day.
Questions to ask
- If I make an offer before or after the auction, do I keep a cooling-off period?
- Can the contract be reviewed by my conveyancer or solicitor before the auction?
Check it yourself
- Confirm your finance position in writing before you bid.
- Arrange your inspections and contract review before auction day.
Source: NSW Government: Contracts and deposits, NSW Government: Buying property at an auction, Consumer Affairs Victoria: Buying by private sale, Consumer Affairs Victoria: Buying at auction, Queensland Government: Cooling-off period, SA Government: Home sales, Land and Business (Sale and Conveyancing) Act 1994 (SA)
General education. Not legal, financial or engineering advice, and it says nothing about any specific property.
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