NSW Auction sales contract

Its been over 5 years since I last sold a beach house via auction in NSW. From memory I believe that the agents like the standard auction sales contract because the successful bidder has to pay the deposit right away (i.e exchange contracts on the day). Is this still the case?

Also, does this still mean that they have to do building and pest checks prior to the auction?

Are the same sales contracts used by all agents in NSW? i.e. is it a standard contract designed by the office of fair trading. It used to be the case many years ago.

thanks

 

Purchasers will ordinarily do their pre-purchase due diligence inspections prior to the auction as there is no cooling off period on an auction sale in NSW.

The standard Contract predominantly in use in NSW is the 2016 edition drafted by the REINSW and the Law Society of NSW although there are other variations, none of which have been drafted by the Office of Fair Trading.

 

in NSW agents don't set up contracts. these are prepared by the vendor's legal team.

It is up to the purchaser if they want to do building and pest prior to the auction - after would generally be too late to bring up issues.

Agents don't use sales contracts, vendors do. In most cases a standard contract is used with special conditions aded to it. The standard contract is not designed by fair trading, but was produced by the law society in conjunction with the reinsw who are the copyright holders.

 

An agent cannot list or market a property without holding a contract (state law) and an agency agreement. Any buyer may ask for it. Prior to auction a interested bidder SHOULD obtain a copy and seek legal advice. The agent may have a P&B report to share (often for a fee)

 

Sorry my terminology above it a bit vague. I was referring to the agency agreement which I still see as a contract between myself the vendor and the agent with consideration to be bound.

Generally speaking does the successful bidder at an auction have to pay the 10% on the day subject to whats in the agency agreement? Is this correct?

Thats interesting what Paul said about offering the reports for a fee. I didnt know that could happen.

cheers

 

Your terminonly wasn't vague, but you were talking about totally something totally different. An agency agreement is the vendor's agreement with the real estate agent about marketing and selling the property. It is a contract.

The 10% deposit has nothing to do with the agency agreement but depends on your contract terms with the purchaser. The agency agreement outlines how you want the agency to market the property.

The successful bidder is entering the contract of sale for land and they will need to be bound by the terms of this agreement, not the agency agreement. The deposit may or may not be 10% - that is up to the buyer and seller to agree.

I think you need some legal advice.