Purchasing at auction can create a huge amount of risk for a purchaser, if you do not approach it correctly. If you are the successful bidder, you are bound by the contract, even if you cannot obtain finance, or have not done your due diligence.
As such, it is imperative that you seek legal advice before attending the auction.
These four steps could save you:
-
Have the contract reviewed so that you are made aware of any inherent issues;
-
Know what you are buying and carry out the necessary due diligence;
-
If finance is required, obtain it before attending the auction; and
-
If you intend to develop the property, discuss this with your lawyer and Council to ensure the property is suitable for your purpose.
The OCK Law property team can advise on these and many more conveyancing issues.
