AN agent recently asked me whether a buyer needed to have the deposit at the auction.
I was a little surprised at the question given the experience of the agent. But it reminded how specialised auctions are within the industry.
The simple answer is yes, you need the deposit at the auction, unless the owner allows for something different, in which case that would apply.
For example the standard terms of an auction call for a 10 per cent deposit. But almost every modern auction accepts a five per cent to ten per cent deposit.
This reduction is approved by the owners and then offered to the buyers.
It made me think about the basic things buyers, and some agents, need to know when bidding at an auction.
Some basic auction information:
— The name you register in, is the name that goes on the contract.
You must know the entity you are buying the property in. Is it your name, your partner’s name, is it a trust fund?
— Take your drivers licence or passport when registering.
A good tip is to register with the agent before the auction date, it saves confusion and leads to less errors on the day.
— Unless you have a personal cheque book, then ask the agent if you can transfer your deposit within 48hrs or ask for a set dollar amount that you can get as a bank cheque.
— Settlement can be altered, shorter or longer, but only if the owner accepts. You should ask your agent before the auction day.
— You can only sign for yourself, unless you have a written letter from someone else stating you can sign for them eg power of attorney or bidding authority. So if the property has joint owners they must attend or give you a letter.
— It is not law on Queensland that a property is announced “On the Market”, it is simply a local traditional. To avoid missing out, you should bid or ask your agent.
Getting your terms and bidding entities right is an essential part of a binding contract. To avoid disappointment ensure you speak to your agent before the auction and have all your information in order.
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