Auction checklist: Checklist before you bid!

Selling your property at auction is popular with vendors, but the auction process can be daunting and overwhelming for purchasers. Remember, it is your responsibility as the purchaser to make sure you have done all the checks, and you will need to complete your due diligence before the auction. So, what do you need to check?

Title and Auction Agreement: 
It is essential to request the Real Estate Agent to provide you with a copy of the auction agreement. You should check to ensure the chattels list is correct. Your lawyer should review the agreement to ensure the standard terms and conditions have not been amended or altered or that the vendor has not added any disclaimers of the warranties in the agreement.
If you are the successful bidder, you will be deemed to have accepted the Record of Title. It is important to know what type of property you are buying, whether it is fee simple, cross lease, unit title or leasehold or whether there are any interests registered on the land. 
It is essential to go through the title of the property and auction agreement with your lawyer to be sure you fully understand what you are purchasing.

LIM Report
The LIM report shows all the information the council has on file for the property, including if Council has issued Code of Compliance certificates for the building, or if there are any outstanding requisitions. 

Property file
If you suspect any building work has been done without the required consents, it is highly recommended that you go to council and do a property records inspection. This will enable you to view the floor plans and match the floor plans with the building on site.
 
Builder’s Report
Would you buy a car without a test drive? Although expensive, a builder’s report should identify significant defects, future or urgent maintenance issues and problems caused by gradual deterioration and lack of maintenance, such as rotting weatherboards or peeling paint. The building report needs to include a moisture test, which will identify structural issues or a leaky home.
 
Finance
Before you bid on auction, obtain unconditional approval from the bank in writing. Pre-approval is only half the approval process. It is vital that you have the bank’s approval for the house you are bidding on.
Every property and every purchase are different, and your circumstances are unique, so please contact us to assist you with the process before you bid.