3 min read

Buying at auction

Picture of Lindel Enticott Lindel Enticott October 26, 2026

Victoria Buying FAQ Cooling Off Contract Review Auction
Buying at auction
From 1,410 Victorian contracts of sale

One in five contracts we reviewed was for an auction. Here's what that changes.

297 of the 1,410 Victorian contracts we reviewed were auction contracts. At auction there's no cooling off, and no finance or building and pest conditions. Buy within three clear business days of an auction and there's no cooling off, though you can still ask for those conditions. Either way, the work has to happen early.

Before the hammer falls
Review
Finance
Inspect
Bid
Not available at auction
Cooling offFinance conditionBuilding and pest
21%297 of 1,410 contracts were auction contracts

Saturday, 11am.

A crowd on the footpath.

The auctioneer asks for an opening bid.

By the time the hammer falls, most of the contract is already decided. It was written before anyone arrived.

297 of the 1,410 Victorian contracts we reviewed (21%) were auction contracts.

Another 1,063 (75%) were private sales that came with cooling-off rights.

What's different at auction

1
There's no cooling-off period

A private sale in Victoria generally comes with a short cooling-off period. An auction sale doesn't. Neither does a sale made within three clear business days before or after a publicly advertised auction (if the property passes in or sells before auction).

When you sign, you're committed.

2
The contract is unconditional

At auction, the contract doesn't come with finance or building and pest conditions. If your loan falls over or an inspection finds a problem after the auction, the contract still stands.

3
You sign and pay on the day

The successful bidder usually signs straight after the auction and pays the deposit then and there. In 215 of the 297 auction contracts, the deposit amount was left blank to be completed on the day.

So the work happens before auction day

At auction, a contract review isn't something you do after you win. It's part of deciding whether to bid.

Before you raise your hand, you want:

  • the contract read and reviewed
  • your finance organised to the point you're comfortable committing without a finance condition (to make sure that the property meets your lender's lending criteria)
  • a building and pest inspection done
  • the deposit ready to transfer, in the form the contract allows

The special conditions still apply

Auction contracts carry special conditions like any other. The settlement variation fees in Article 7. The default costs in Article 8. The deposit restrictions in Article 9.

The difference is that you can't negotiate them once the hammer falls. If something needs changing, ask the agent before the auction. The seller may say no, but you'll know where you stand.

If the seller agrees, get it in writing before you bid.

Buying just before or just after auction

A private offer accepted within three clear business days before or after a publicly advertised auction is treated like an auction purchase for cooling-off purposes. No cooling-off period applies.

Unlike an auction contract, a contract signed in that window can still be made subject to finance or a building and pest inspection, if the seller agrees.

If you're making an offer in that window, prepare as if you're bidding.

What to do

  1. 1
    Ask the agent for the contract as soon as you're interested.

    Not the week of the auction.

  2. 2
    Get it reviewed before you register to bid.
  3. 3
    Talk to your lender about where your finance stands.

    Understand what your pre-approval does, and doesn't, commit them to.

  4. 4
    Do your building and pest inspection before auction day.
  5. 5
    Check the deposit terms.

    Amount, timing, and whether a bond or guarantee is allowed.

  6. 6
    Set your limit, and include the costs.

    Stamp duty, fees and adjustments at settlement all come on top.

  7. 7
    Raise any contract changes with the agent before the auction.
The wider point

Auctions reward preparation. Not bravado. Not luck. Preparation.

The buyer who has read the contract, sorted their finance and inspected the property is bidding with confidence. The buyer who hasn't is bidding with hope.

Go to auction Prepared.

Send us your contract.

A Prepared lawyer will review the auction contract the same day, for free, so you know exactly what you're committing to before you bid.

Based on 1,410 Victorian contracts of sale that received a published Prepared review between 1 February and 31 August 2026, across metropolitan Melbourne and weighted towards the eastern and north-eastern suburbs.
A finding is counted where a qualified reviewer confirmed it and it appeared on the published review.
Sale method is taken from the contract as issued. The remaining contracts carried neither finding.
This analysis describes what appeared in the contracts reviewed by Prepared and should not be taken as legal advice for a particular transaction.
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