At a Victorian property auction, the auctioneer conducts the sale under the applicable auction rules and the contract documents. The successful bidder is expected to sign the contract and pay the deposit promptly. Whether a binding contract has formed in a particular dispute depends on the auction process, the terms offered, acceptance, the parties' objective intention and the applicable statutory formalities. The practical point is that a bidder should treat a successful bid as a serious commitment and should not bid on the assumption that they can change their mind after the hammer falls.
The cooling-off right for a private sale does not apply to a sale at public auction. It also does not apply to a contract entered into within three clear business days before or after a publicly advertised auction of the property. Other statutory exclusions also apply, including certain commercial, industrial and larger farming properties, and purchases by specified buyers.
Because auction buyers generally cannot rely on a cooling-off period and may have no finance, building or pest condition, due diligence should be completed before bidding. Review the contract and section 32 vendor statement, arrange appropriate inspections, confirm finance and borrowing limits, and understand the deposit and settlement obligations.
CMK Legal's property and conveyancing team can help with this.
Do not bid until you understand the contract and can complete the purchase on its terms. A lender's later refusal to advance funds or an unsatisfactory inspection will not usually give an auction buyer an automatic right to withdraw.
Law referenced: Sale of Land Act 1962 (Vic) s 31; Sale of Land (Public Auctions) Regulations 2024.