Auction contract review in Victoria.

At auction there is no cooling off. The Sale of Land Act 1962 excludes auction sales, and sales made close to a public auction, from the cooling off right, so a successful bid is binding immediately, with no finance or inspection condition unless the vendor agreed to one beforehand. That is why the contract and section 32 are worth looking at before auction day, not after.

The review covers the contract of sale, the section 32 vendor statement, the title and plan, the owners corporation certificate if there is one, and any building permits or reports supplied. It is aimed at what could hurt a buyer after the hammer falls.

That includes the settlement date and whether finance can meet it, the deposit amount and any early release, special conditions the vendor has added, easements and covenants that limit what can be built, owners corporation levies and defects, planning overlays, unapproved works and permits from the last seven years, and anything missing from the section 32 that could give a buyer a right to rescind.

A report sets out each issue rated, a plain-English summary of what can and cannot be changed, and a call before auction day. Where something needs fixing, it can be taken up with the vendor's lawyer before the auction; after it, nothing is negotiable.

Auction purchases are unconditional. There is no cooling-off period, no subject-to-finance clause and no building inspection condition unless the vendor agrees to one before the auction. Get finance formally approved and the contract reviewed first.