BUYING a property at auction has changed over the past ten years and considering most people only buy once every ten years, that can mean a lot of confusion at the registration table.
Firstly, there is now a registration table.
When bidding at an auction in Queensland a buyer must first register. This is where I see the most drama. To register you need to produce identification – a driver’s license or passport – then verify the entity you are wanting to buy in and then those authorised people need to sign the registration card.
What causes the drama is the high number of people that turn up to buy for their partner, friend or otherwise without any paperwork that gives them authority to do so.
This can lead to those buyers being excluded from bidding and a lot of heartache for the sellers and agents too.
If you want to bid at an auction ask the agent what they need for you to register. Talk to your accountant or adviser and work out which entity to want to buy the property in.
Will it be your name, your partner’s name, both names or a company/trust?
This must all be established before you register and either all parties must sign the bidding card or a document that they have signed must be produced verifying that you can sign for them. It’s thirsty work!
The other minor pain points are around deposit and settlement. The deposit amount and settlement times are announced at the start of the auction.
This means if you need a lesser deposit or a longer settlement you can be in trouble if you buy the property. Again it’s crucial you let your agent know the deposit and the settlement period that you need prior to the auction, and some confirmation stating it’s approved to avoid any issues at the auction.
The reason this all needs clearing up before the auction is because in Queensland once the property is knocked down to you, you’ve bought it on the announced terms and they can’t be easily changed.
My tip is to email to the agent prior to the auction the entity that you want to buy in, the deposit you need including how you will be paying it and your preferred settlement date.
Then ask them to email you confirmation. Doing this will allow them time to advise you on what they require, to get any approval from the seller and then ensure no one has any added stress on the big day.
To read the entire article, please follow the link below