The auction rules state that if you purchase a property on auction day, whether it is under the hammer or negotiated after, three business days before or three business days after the auction date, the purchase is not subject to cooling off. This means that there is no cooling off period for buyers who buy at auction. Once everything is negotiated and signed off, you have entered a legally binding contract and there is no room for buyer’s remorse.
That said, you must ensure that you are financially and emotionally ready to take on a property that you bid for. If you want to get out of a contract, it will have to be dealt between the two legal representatives and either an agreement is come too or you as the buyer will stand to lose or pay the deposit. This is the reason why owners choose to go down the auction route, it is a cleaner sale and full transparency.
If for any reason you are not confident that you can buy, then do not put your hand up to bid or even talk to an agent if the property is passed in. Get your financials in place first, know what you can spend and be sure you have received all the advice, so you know what your limits are. Once you’re locked in, you’re locked in.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.