Going Once, Going Twice, Sold
When a property is purchased at Auction there is no cooling off period and both the vendor and purchaser are required to sign a binding contract. Copies of the contract will be available before and at the auction for buyers to inspect and get legal advice if they require. All inspections and checks need to be done before the auction date along with formal finance approval being granted. Usually on the day of the auction the property may be open for inspection for you to take a final look.
Before auctioning a property, the seller will nominate a reserve price, which is usually not advertised. If the bidding goes beyond this reserve price then the property is sold at the fall of the hammer. When a person has successfully made the highest bid and the property is sold “under hammer” they are required to pay the deposit and sign the contract. Both parties are immediately bound to the contract when the auctioneer declares the property sold.
If a property is sold on the same day as the auction and contracts signed and exchanged the buyer still does not have the benefit of a cooling off period. However, if the contracts are not exchanged until some day after the auction then the cooling off rights apply.
If you are the successful bidder at auction you must be ready to exchange contracts and complete the sale. If not you will lose your deposit and may be liable for any damages suffered by the vendor.
More information can be found by clicking the following link