The central auction risk
An auction is generally unconditional when the hammer falls. If you win, you are committed to buy and will usually pay the purchase deposit on auction day.
Before bidding
Confirm the deposit, settlement date, insurance, title, LIM, building condition, valuation requirements, and lender conditions. Have the auction documents reviewed by a solicitor or conveyancer.
Pre-approval is not enough
A general pre-approval does not remove the need to confirm funding for the specific property. Finance and inspection conditions generally cannot be added after the hammer without the seller’s agreement.
Illustrative example
Aria discovers an unreviewed body-corporate document before an auction and pauses until the property and contract questions are answered.
Evidence categories to organise
- Auction terms
- Deposit and settlement date
- Title and LIM
- Building inspection
- Insurance
- Property-specific lender confirmation
- Legal review
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.