There is usually no cooling-off period when buying at auction. If you are the successful bidder, you will have to settle even if:
- The property doesn’t pass inspections
- You change your mind
- You can’t afford it
If you are the successful bidder, you must sign a contract immediately (and pay the deposit). There are very serious legal consequences if you cannot settle the sale on time. You may be forced to pay:
- The amount of your winning bid
- The cost of re-auctioning the property
- Any shortfall between your offer and the sale price.
So, buying at auction is one of those situations where you should get your lawyer involved early to ensure you are aware of the pre and post auction risks. Blunden & Montgomery Solicitors have a long and proud history of servicing clients in the Property and Property Development fields.