In Victoria, a vendor plans to pass the property in at auction if the reserve is not met and then negotiate straight away with the bidders. What is the key legal consequence for a buyer who signs a contract that afternoon?
Correct Answer
A) The sale can proceed, but the buyer has no cooling-off right this close to an auction.
In Victoria, the cooling-off period does not apply if the property is bought at a public auction or within three clear business days before or after one. So a buyer who signs after the property is passed in on auction day has no right to cool off. Other states differ: NSW excludes contracts made on auction day with bidders, Queensland has its own rule for registered bidders, and WA has no statutory cooling-off at all.
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- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
- → Tom plans to bid at a NSW house auction on behalf of his sister, who will instruct him by phone from Perth. Neither holds power of attorney. What must Tom do to bid for her?
- → Before a NSW residential auction, the vendor asks the auctioneer to make two vendor bids if bidding stalls, both announced as vendor bids. What must the auctioneer tell the vendor?
- → A buyer arrives to register at a NSW residential auction with only her overseas passport, which does not show her address. What will allow her to register?
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