When is it normal to receive contract of sale pre-auction?

kathartic on 09/03/2021 - 14:01

Hey everybody

I am looking to purchase my first home (Victoria) and am a bit confused about the routine process. I am trying to get hold of contracts for my conveyancer to check before auction but the real estate agents I am enquiring with say contract's not yet available - one auction is only 4 days away! I thought that a contract would have been made when the seller put the home on the market so I am a bit suspicious about the delays. Or is it standard to only get the documents 24-48 hrs before?

Also in Vic is it standard that sellers provide a B+P inspection? (I know I should get my own too, but it might be useful to read as an initial screen) Thanks heaps!

Home & Garden

Comments

  • djones145 on 09/03/2021 - 14:07

    that's weird, my friend is selling a home this weekend and has been dishing out contracts since first open home (4 weeks ago)

    he is in nsw and has sent over 30

    • Logical on 10/03/2021 - 23:56

      beware of scammers requesting the contract and as such remove all personal data from it, apart from terms of settlement. If you leave all data on contract and send willy nilly out to all who ask then watch out……

  • Gunther on 09/03/2021 - 14:09
    +1

    Copies of the contract should of been made available already to you, its usually a standard templated document from the Real Estate Agents so not sure why its being delayed….

    Buyers responsibility for B&P.

    If the property is going to auction, it is essential to get a building and pest inspection report prior to auction day, as buyers who are successful under the hammer are making a non-negotiable commitment to purchase the property – there is no cooling off period. No finance clauses etc.

    Anyway, redflags - buyer beware!

    • at9 on 09/03/2021 - 14:29
      -5

      non-negotiable commitment to purchase the property

      That's not true as an action is nonbinding and until the contract of sale is signed there is no commitment.
      It's made out by Real-estate agents that wining an auction means you have to buy the property but unless there is a signed agreement you can negotiate.
      It might be in poor form to do this but there is nothing stopping you from doing it.

      • Kail on 09/03/2021 - 17:41

        That's untrue, if you are the winning bid at an auction you are obligated to purchase the property and can be sued if you don't. It is 100% a binding agreement. You agree to this when you sign up to receive your bidding card. If it wasn't then people would commit fraud all the time by placing fake bids to help their friends get a higher property price.

  • rambutann on 09/03/2021 - 14:16
    +2

    Yeah Auction in 4 days, thats not right, I would not be bidding on this.
    Generally the contract is ready before it is listed for sale, but on a number of occasions i've seen it take 2 weeks from the list date for the REA to obtain a contract, but that has been private sale.

    As above, buyers responsibility to get a building inspection.

  • [Deactivated] on 09/03/2021 - 14:38

    Have they made the section 32 available?

    Quite a few auctions I have been to the agent has only made the section 32 available before the auction. Not he full contract.

    It is annoying and dodgy but not much you can do if you want the property. The contract should be a standard one and the bit your conveyancer will care about is in the section 32 such as building permits / overlays.

    Victoria has no requirements for the seller to provide a build or pest inspection.

  • SF3 on 09/03/2021 - 14:39

    Does sound sus.

  • AndyC1 on 09/03/2021 - 14:39

    Sounds fishy. In NSW the REA have contracts available at any open house if they have not run out and if they have then you can pick one up at the REA office or they can mail you one.

    I would stay away from the auction or make an offer before the auction as it is then subject to a cooling off period if accepted and make sure the offer is conditional w.r.t. being accepted before the auction and …… and conveyancer not finding anything out of the normal or something that would take time and/or money to resolve.

  • jjjaar on 09/03/2021 - 14:48

    When I was looking, some properties would only have their section 32 and CoS ready a day before due to the vendors lawyers being extremely slow.

    Most were at least a week out, but it wasn’t uncommon for it to be within the week prior.

  • Seraphin7 on 09/03/2021 - 15:44
    +1

    When arranging to sell your property, the contract should normally be prepared prior to it going on the market.

    Anyone who is unable to provide me with a contract 4 days out from an auction is just kidding themselves … but then again, in this market, some turkey will probably say no worries and buy/sign anything that's shoved under their nose on the day.

  • netjock on 09/03/2021 - 15:45

    If no section 32 no auction. The agents are just dreaming. They will call off the auction on Thursday or Friday.

  • deme on 09/03/2021 - 19:45

    Agents are scum

  • yellowfever on 09/03/2021 - 23:36

    Section 32 is a must.
    They are risking a sale by not producing any paperwork prior.

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