No Conditions Once the Hammer Falls
Buying at auction changes the sale and purchase agreement significantly. There's no room for conditional offers — bidding at auction is unconditional, meaning you must have your finance, building report, and LIM already sorted before you raise your paddle. The winning bidder signs the agreement immediately after the auction, with no cooling-off period.
For mortgagee auctions specifically, standard vendor warranties — including Code Compliance Certificate warranties — are typically removed from the agreement. The mortgagee generally won't compensate or rectify any damage to the property between the auction date and settlement, either.
Standard Sale
Auction Sale
At a mortgagee auction, standard vendor warranties — including Code Compliance Certificate warranties — are typically removed from the agreement entirely.
Before You Bid at Auction
All your homework needs to be done in advance.
Arrange finance approval
Get formal, confirmed approval before auction day — pre-approval alone isn't enough.
Get the building report done
Have a licensed building inspector assess the property before the auction, not after.
Order and review the LIM
Check for unconsented work or hazard notations while you still have the option to walk away.
Have your lawyer review the agreement beforehand
Ask specifically about any warranties removed, particularly for mortgagee sales.
Quick Summary
- Auction bids are unconditional — all due diligence must happen beforehand.
- Mortgagee auctions typically remove standard vendor warranties, including CCC warranties.
- Have a lawyer review the auction agreement terms before bidding.