Reviewing the contract before you bid at auction — NSW and Victoria

The short version

When you win at auction you sign the contract on the day and it's unconditional — no cooling-off period in either NSW or Victoria, no "subject to finance", no way to attach a condition afterwards. That makes the contract itself the thing to check before you raise your hand. It's a different job from a building and pest inspection, which looks at the bricks: a contract review looks at the terms — the deposit, the settlement date, the special conditions, what's included, and what the title and disclosure documents reveal. Anything a review would have flagged is yours to live with once you've bought.

Why the contract can't wait until after you win

In a private-treaty sale you often have a cooling-off window to get advice and change your mind. At auction you don't. Auction sales are carved out of cooling-off by the Conveyancing Act 1919 (NSW) and the Sale of Land Act 1962 (Vic). So a review done the week after the auction only tells you what you already own. The protection a private-treaty buyer gets from reading the contract at leisure has to be pulled forward to before auction day.

Getting the contract early

The contract is usually available from the agent before the auction — for a NSW property the contract for sale must exist before the home can even be marketed, and for a Victorian property the seller must have a Section 32 vendor statement ready to give you before you sign. Ask for it as soon as you're seriously interested, not the night before. Getting it early is the whole point: it leaves time for your conveyancer or solicitor to read it, raise questions with the agent, and — where it matters — negotiate a change while you still have leverage.

What a review actually looks at

A contract review is reading the deal, not the building. The parts that most often change what a property is worth to you:

The money and the timing

The deposit — usually 10%, and whether the contract will accept 5% or a deposit bond; see paying the deposit at auction. The settlement period, and whether it suits your finance and your current home. Any penalty interest if you settle late. These are set in the contract, and at auction they're rarely up for discussion once bidding starts.

The special conditions

The standard contract is only the starting point. Special conditions bolt on extra terms — "as is where is", shortened notice periods, a right for the vendor to stay on after settlement, clauses shifting risk onto the buyer. These are where the surprises live, and they're written by the seller's side.

Title, disclosure and what's included

What the title carries — easements, covenants and the like — and, in NSW, the prescribed documents the contract must attach. In Victoria the Section 32 has to disclose title, planning, rates, owners corporation and more. And the inclusions list: the fixtures and fittings that stay. A verbal promise from the agent isn't worth much; if it's not in the contract, it isn't part of the sale.

Negotiating before the auction, not after

If the review turns up something you don't like, before the auction is the only time to do anything about it. You can ask the agent to amend the contract — a longer settlement, a lower deposit, an inclusion added — and if the vendor agrees, the change is made before the property goes under the hammer. You can also make a pre-auction offer on terms the auction itself won't allow. Once the auction runs, the contract is fixed and the winning bidder takes it exactly as written. There is no cheap way out afterwards.

What to check before you sign

1. Get the full contract (and the Section 32 in Victoria) early, as soon as you're serious — not on auction morning.
2. Have a conveyancer or solicitor review it before the day, because you can't add a condition or cool off after you win.
3. Read the special conditions closely — the standard contract is only the base; the extra terms are where risk gets shifted to you.
4. Check the deposit, settlement date and any penalty interest against your finance and your plans, and ask about 5% or a deposit bond before you bid.
5. Confirm the inclusions and the title — that what you were shown is written in, and that easements or covenants don't undo your plans.
6. Raise any change with the agent before the auction, while the vendor still has a reason to agree.

Common questions

Is a contract review the same as a building and pest inspection?

No — they answer different questions. A building and pest inspection is about the physical condition of the property; a contract review is about the legal terms of the deal. Serious auction buyers usually arrange both before the day, because neither can be made a condition of an auction sale.

Can I still get the contract changed if I've had it reviewed?

Only before the auction, and only if the vendor agrees. You can ask the agent to amend a term — settlement length, deposit, inclusions — and a change agreed beforehand is written into the contract that goes to auction. Once bidding opens, the terms are locked for whoever wins.

Do I need a review for every auction I might bid on?

Reviewing the contract costs far less than the property, and most buyers have it done for each home they're genuinely likely to bid on. It's the same trade-off as inspections: you may pay for review on a property you don't win, which is still cheaper than being locked into terms you didn't understand.

What should I have read before I register to bid?

Ideally the whole contract, reviewed, plus your inspection results — before you register to bid. Knowing how the auction runs and running through a contract review checklist beforehand means the only decision left on the day is how high to go.