Auctions move fast and the rules are different from a private sale. When the hammer falls, you have bought the property. There is no cooling-off period and no chance to fix problems in the contract later. That is why the conveyancing work for an auction happens before auction day, not after it.
No cooling-off at auction
In NSW there is no cooling-off period when you buy at auction. It also does not apply if the property is passed in and you exchange contracts on the same day as the auction. Whatever is in the contract, you are agreeing to it when you sign.
Before auction day
1. Get the contract reviewed
The selling agent must have the contract available for inspection. Ask for it as soon as you are interested. Have a conveyancer check the title, planning certificate, special conditions, strata records and settlement terms. If something needs changing, such as the deposit amount or settlement date, ask the agent before auction day. Changes are much harder once bidding starts.
2. Sort out your finance and deposit
The successful bidder must sign the contract and pay the deposit on the spot, usually 10% of the purchase price. Talk to your lender about pre-approval and make sure you can pay the deposit on the day. If you need a smaller deposit, ask the agent whether the seller will accept one before the auction.
3. Arrange inspections
Book any building and pest inspections or strata report before the auction. After the auction it is too late to walk away if something is found.
4. Register to bid
You cannot bid at a residential auction in NSW unless you register with the selling agent. You need to give your name and address and show proof of identity, such as a driver licence. You will get a bidder number to display when you bid. If you are buying with someone else, only one of you needs to register. If someone is bidding for you, they need a letter of authority from you.
On auction day
Vendor bids: the auctioneer can make one bid on behalf of the seller, and must announce it as a vendor bid.
Dummy bidding is illegal: false bids to push up the price can attract fines of up to $55,000.
Reserve price: the seller sets a minimum price. If bidding does not reach it, the property can be passed in.
If the property is passed in
When a property is passed in, the highest bidder generally gets the first chance to negotiate with the seller. Remember that if you exchange on the same day as the auction, there is still no cooling-off period. Have your conveyancer check any changes to the contract before you sign.
After you win
You will sign the contract and pay the deposit on the day. Your conveyancer then handles searches, adjustments, transfer duty and settlement, which in NSW is completed electronically.
Get the contract checked before you bid
Because there is no cooling-off, the contract review is the most important step for an auction buyer. My Property Kit can review your contract for $99, with same day turnaround on request and pre-auction advice on weekends by appointment.
This article is general information only and is not legal advice. Information is current as at October 2026. Sources: NSW Government, Buying property at an auction; Bidder's guide; Contracts and deposits when buying property in NSW.
