Paying 10% deposit by bank cheque at an auction?

How does that work? If you don’t know exactly how much you’re going to get the house for. Can it be over/under?

 

Just ask the agent for a variation on terms before the auction. agree on a set amount etc , or that you can pay it electronically

 

Check with the agent if they will accept a different form of payment, or a part payment with the balance paid a few days later. If they insist on 10% bank cheque on the day, get a cheque for 10% of your maximum bid.

 

Thanks guys, I’ll just take a bank cheque out for max I’m prepared to pay on the day.

 

You can get your bank to issue you with temporary cheques. They just print them off at the branch. If it's still a couple of weeks away they can even get you a cheque book. Handy for when dealing with dinosaurs or King Henry VIII.

 

You don't need a bank cheque on the day.

You'll probably show up to the auction with your mobile phone with a groovy little banking app. As you're about to sign the contract you ask the agent if you can transfer $1,000 to their trust account right now, then you'll give them a bank cheque for the balance on Monday morning.

 

I'd be careful there - and i'm talking worst case scenarios, but in Qld paying more than a 10% deposit can trigger what's called an instalment contract and the agent may refuse your bank cheque deposit on those grounds. Also @Peter_Tersteeg is correct, that sort of thing happens at auctions every day, however if you haven't previously asked to bid under those terms it could bite you on the a%#e.. better safe than sorry , just ask for the variation prior

 

Negotiate beforehand for a set dollar amount if you are successful. The amount would obviously depend on the approximate expected selling price.

Or just take a wad of cash. Friend sold his late father's home for $1.6m. Buyer whipped out a bag of $100 notes, and the agents sat there for 15-20 minutes and counted out the $160K deposit.
Marg

 

Or pre-arrange an electronic transfer. That's what I did last time I bought at auction in Melbourne.

 

You can check with the agent regarding what he would accept.

I had the same query and there seem to be at least the following ways:
- ETF 1000 bucks right after the auction, and then draw a cheque for the remainder on Monday morning as most auctions are on Saturday
- get a blank personal cheque beforehand and then just write the number after you win the auction and hand it over
- get a bank cheque for an estimate number in advance, and then pay the balance on Monday morning

 

Secure agreement from the selling agent in advance as to acceptable terms of payment if you are the winning bidder. They will likely accept $1k EFT'd on the day if you show them evidence of the transfer, and then allow you to toddle into a branch and deposit a personal or bank cheque directly into their account on Monday morning.

 

Im going to auction tomorrow. I went to ANZ and they gave me a blank counter cheque. Not sure if this is the right thing or not but thats all I have.

 

LOL love it !

 

Yep and we wonder why the government wants to remove the $100 note due to counterfeiting/money laundering

 

i always speak to the agent, explain that i am going to lots of auctions and i have no idea if i will win or not. It is crazy to be pulling bank cheques or even having that cash sitting in a chequing account. I make up some BS about shares or term deposits, then offer $25k cheque with balance of a 5% in 7 days. I get told no but occasionally i get told yes.

 

In SA, its generally paid via EFT with banking receipt, or 1-2k + balance on Monday

 

Talk to the agent, they often agree to a small deposit with full balance transferred within 2-3 day. I won my house (500K+) at an auction and only required to deposit $1K via EFT on that day (Sat morning), the balance was transferred 2 days later on Monday.

 

Then prove to Austrak or two guys (or ladies) in suits at your door later the source of the $160K. Any cash over $10K is a reportable item and property transactions in cash are ALL investigated by the Crime Commission or its agents. OLMCGs were doing this to lauder drug proceeds and so its become a 100% review issue. No bank will generally allow a $160K withdrawal in cash even with notice without imposing an armoured car charge and several days notice.

 

I thought you could legally write a cheque on any piece of paper, provided all the details are correct. I wonder if the auctioneer would accept that...

 

These days a lot of agents use DEFT Auction Pay which allows you to transfer an amount more than your bank would usually allow (most people have $10K or $15K limits).

Auctioneers and agents will almost always allow a ‘consideration’ on auction day which I’ve seen as little as $1000 (this is rare). Usually 10% of the guide price is acceptable and then this is adjusted on the Monday depending on what the sale price is.

- Paul