(VIC) Post-auction negotiations

I don't know the conditions for other States but this query pertains to Victoria. I thought I read a post on a similar topic recently but I wasn't sure on the exact answer and now can't locate it again.

Is it permissible during post-auction negotiations to request amendments to the contract and those amendments to be binding on all parties upon signature? Or, are contract amendments only applicable for the 3 full business days after the auction if they are agreed prior to the auction?

I think in the current circumstances, if a property is passed in, vendors may be more open to proposed post-auction amendments immediately after the auction. Both parties have something to gain so it makes sense to reach some sort of agreement (to me) but I'm unsure if this is against State auction conditions.

 

What kind of amendments? Settlement date and price pretty much all you can do on the day. SInce it is auction day it is still an unconditional contract

 

There is a lot you can do in terms of inspection and safety certification to ensure utilities are 'fit-for-purpose' that a buyer doesn't want to necessarily go to the expense of doing prior to auction - particularly in an apartment block where access can be restricted. I agree in Feb 2020 that the scenario I paint would be highly unlikely but today, if the vendor has confidence the building is in reasonable condition, agreeing to some reasonable amendments, that could be the difference between a sale or waiting several weeks/reduced price.

Prior to auction the buyer has no leverage but post-auction negotiations, it isn't one-way traffic in favour of the vendor and both sides have something to gain by compromising.

 

certainly can do any conditions and amendments that you guys can mutually agree on. Just saying doing it post auction an agent would only advise the vendor to look at it on Monday after a Saturday auction as on Saturday they would want something unconditional and no subject to ........... clauses

 

I don't know about other special conditions, but I do know that in Victoria you can add a finance clause in post auction negotiations.

 

Why would a vendor give a buyer an out that they currently don't have though? Seems crazy to me, unless there's something huge in return to sweeten the deal.

 

Really? On auction day?

 

you can do anything if owner agrees

 

Usually, yes, but auction conditions are somewhat different.

We've bought many homes at auction, and a few after the auction have ended. They've all been bought under 'auction conditions'.

 

Yeah, most owners would not entertain conditional offers under auction conditions however I have been involved in some sales where we have had little interest in a property and resorted to a conditional offer.

 

Those are usually the ones we buy. The 'little interest' ones, that is. I do love me a good auction, where I'm the only bidder.

 

Agreed and if we were in Feb 2020, I wouldn't be asking the question because next to no vendor would give up the post-auction opportunity to sell unconditionally.

We aren't in Feb 2020 and the same 'rules' don't need to necessarily apply hence my curiosity whether sensibility is overtaken by law and regulations.

 

I can't comment on auctions in VIC, or the kind of auctions that you attend, but here, in NSW, I often opt for cheap properties, that have little appeal to many. Regardless, even in the current conditions, auction conditions are auction conditions. That's why I like them.

 

The essential condition which arises out of an auction is the S66W, there is no cooling off period. All due diligence has been completed & finance arranged - not subject to negotiation. Why would a vendor retract this condition?

If the buyer was not concerned or serious, they would wait and risk the property coming back under normal conditions at the vendor's price.

 

I think you are purchasing in an area where auctions are the norm, unlike mine, where private treaty is the norm. Where I buy it's usually only investors that turn up for auctions, and auction conditions are relevant only on the day of the auction.

 

So in Vic, you’d have to make your offer within 3 days of the auction to have real auction conditions. After that, you can’t legally give up your 3 day cooling off period - even if you choose not to use it...

 

About 4.5 years ago, my brother attended an auction with no bids. Immediately after the auction he negotiated a 3 week finance clause. I did question the validity of the clause and received legal advice that it was legitimate.

 

You can have your finance clause, just that you can't withdraw