At an auction, the hammer falls and you are bound. There is no cooling-off period, no subject-to-finance clause, and no second look at the contract. Whatever is in that Section 32, you have just bought it.
Every piece of due diligence you are going to do has to happen before auction day.
All Hours Conveyancing has been reviewing auction contracts for Melbourne buyers for more than 20 years and across more than 10,000 property transactions. Send us the contract before you register to bid.
Auction campaigns do not wait for anyone. If the contract has only just landed and you are bidding this weekend, you do not have days to spare.
We offer a same-day assessment, so you can walk into the auction knowing what you are bidding on.*
If we cannot turn it around in time, we will tell you that honestly and immediately, rather than leaving you waiting. Call us with the contract and the Section 32 and we will give you a straight answer on the timeframe.
*Same-day assessment is subject to conditions
Everyone knows there is no cooling-off period when you buy under the hammer.
Far fewer people know this: in Victoria, there is also no cooling-off period if you sign a contract within three clear business days before or after a publicly advertised auction.
A cooling-off period gives a buyer a limited amount of time to cancel a contract after signing. In most private sales in Victoria, this period is three clear business days (subject to the legislation and applicable exceptions).
It means three full business days, not including the day you sign the contract, the auction day, or weekends and public holidays. The calculation can be more complicated than many buyers realise, so it’s always worth checking before you sign.
Many buyers think making an offer before auction day is the safer, calmer option. It feels like a private sale. It isn’t.
If the vendor accepts your offer within three clear business days before the scheduled auction, you generally do not have a cooling-off period.
Example:
Auction scheduled for Saturday.
You sign an accepted contract on Thursday.
❌ No cooling-off period.
If the property does not reach reserve, it is passed in and the highest bidder is often invited inside to negotiate with the selling agent and vendor.
Many buyers assume this has become a normal private sale. It hasn’t.
If you sign the contract within three clear business days after the auction, you generally do not have a cooling-off period.
Example:
Property passes in on Saturday.
You negotiate and sign on Monday.
❌ No cooling-off period.
A property is passed in when bidding at auction finishes below the seller’s reserve price, so the property is not sold at the auction. The vendor can then negotiate privately with interested buyers.
Don’t assume that buying before or after an auction gives you the same protections as a standard private sale.
The timing of your contract matters.
If you’re unsure whether the three-day rule applies to your purchase, give us a call before you sign. It’s much easier to answer a five-minute question than to deal with the consequences afterwards.
including every special condition and what it shifts onto you
and everything it discloses, and anything it fails to disclose
that could restrict what you build
obligations, fees and any pending special levies
on the property
and whether the date actually works for you
how much, when, and how it must be paid
on your behalf before the auction
Auction contracts are unconditional. There is no subject-to-finance clause. If your lender declines after you win, you are still bound to settle, and failing to settle has serious consequences. Know your borrowing capacity before you raise your hand.
Confirm with the agent in advance exactly how the deposit must be paid on the day, and arrange it with your bank. This trips people up more often than it should.
Building and pest inspections need to be done before, not after.
Decide it before you get there. Auctions are designed to move you past it.
We’re based in the Melbourne CBD at Level 1, 530 Little Collins Street. We provide auction support across Melbourne CBD, East Melbourne, West Melbourne, Middle Park, St Kilda, Elwood, Fitzroy, Clifton Hill, Parkville and Ivanhoe.
We offer a same-day assessment, subject to conditions. Auction buyers are usually working to a Saturday deadline, so contact us as early as you can with the Contract of Sale and the Section 32, and we will confirm the timeframe for your matter straight away.
No. And there is also no cooling-off period if you sign a contract within three clear business days before or after a publicly advertised auction. That means pre-auction offers and after-auction negotiations on a passed-in property carry no cooling-off rights either.
Generally no. An auction purchase is unconditional. Once the hammer falls you sign the contract and pay the deposit, and you are bound to settle.
It means bidding did not reach the seller’s reserve, so the property did not sell under the hammer. The highest bidder is usually given the first right to negotiate with the vendor immediately afterwards. Because that negotiation happens within three clear business days of the auction, there is no cooling-off period.
No, and this is a common and expensive misunderstanding. If the vendor accepts your offer within three clear business days of the scheduled auction, you have no cooling-off rights.
Often, yes. We can request amendments from the vendor’s representatives before auction day, such as a different settlement date or a reduced deposit. If agreed, the changes are written into the contract, so they apply automatically if you win. Once bidding begins, this is no longer possible.
You are still legally bound to settle. Auction contracts do not have a subject-to-finance clause. This is why your borrowing capacity needs to be settled before you bid.
Contact us and we will provide a fee proposal.
There is no cooling off at auction. Everything you need to know, you need to know beforehand.
Same-day assessment available. Conditions apply.
Why take a Risk on the biggest financial decision of your life?
We’re proud of the relationships we build and the trust we earn. We work tirelessly to ensure that your property transaction is completed efficiently and without hassle.
Level 1, 530 Little Collins St, Melbourne
info@allhoursproperty.com.au
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