LAW OF THE LAND
With Nick Earl
You’ve found the house of your dreams, it’s auction day and the excitement is mounting -but are you ready for the hammer to fall?
In a seller’s market, property is often sold via auctions. However, it is easy to be caught out if you don’t prepare adequately.
If you are bidding at auction, essentially you are making an unconditional offer that is legally binding, so it’s important to make sure you have completed your pre-purchase investigations beforehand.
Your first port of call is likely to be the listing agent. Some of the reports you may decide to rely on will be in the agent’s auction pack. The agent will also be able to tell you how many other parties are interested and at what price they are registering their interest.
It is recommended that your lawyer reviews the auction terms and conditions of sale and the title of the property before the auction date. If you discover any issues, these can be raised in advance.
Obtaining both a Land Information Memorandum (LIM) and builder’s report is strongly recommended. Contamination tests are also becoming more common.
In regard to finance, it is essential that this has been approved unconditionally prior to bidding and that you are in a position to draw down the funds on the designated settlement date. You should also ensure you have sufficient funds to pay the deposit if you win the auction.
Carrying out due diligence and seeking sound legal advice before auction day will help you determine a purchase price that you are comfortable bidding to, and will keep your bank and insurance company happy - so that you can turn your dream home into a hassle-free reality.
- Weekend Sun, August 25,2017
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