A Seller’s Guide to Auctions

Auctions are now becoming a more popular method of selling property. However, vendors have a lot to consider before agreeing to go to auction. For example, vendors need to determine a reserve price, bidding increments and what happens if the reserve price is not met. Before the auction, the real estate agent will usually prepare the “Particulars and Conditions of Sale” (which, once signed, becomes the agreement for sale and purchase of the property). It is advisable to have a lawyer review this document and the certificate of title prior to the auction. As part of this review, vendors should confirm with their lawyer that the chattels list on the front page of the document is correct. The ch

A Buyer’s Guide to Auctions

Auctions are now becoming a more popular method of selling property. Purchasing a property through auction is a little different to purchasing through other methods and purchasers have a lot to consider. Sales by auction are unconditional. Once the hammer falls and the agreement is signed, both the buyer and seller are legally obligated to complete the purchase. Buyers considering purchasing a property at an auction should do their homework and conduct their own due diligence procedures beforehand. This may include the following: Obtaining a LIM report; Obtaining a building report; and Asking a lawyer to review the auction documents to confirm details such as the deposit amount, settlement d

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