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If you have been spending your Saturdays trailing through open homes across Melbourne, you will know how quickly an auction campaign moves. One minute you are admiring the north light in a Brunswick terrace, the next the agent is handing you a contract and talking about bidder cards. So do you really need a conveyancer before you raise a hand on auction day? Strictly speaking, the law does not force you to engage one. Practically speaking, it is one of the smartest moves you can make.
Below, we explain why timing matters in Victoria, what a conveyancer will do for you before an auction, how they can adjust the contract terms in your favour, and the traps to avoid if you are tempted to wing it.
The Short Answer
You do not have to hire a conveyancer before bidding, but you absolutely should. In Victoria, there is no cooling off period if you buy at auction, or if you buy within three clear business days before or after one. When the hammer falls and the seller signs, the deal is binding and you cannot add conditions. You must also pay the agreed deposit straight away or as per any pre agreed terms.
That one rule changes everything. If you want any changes to settlement timing, the deposit or other special conditions, they must be negotiated before auction day. Otherwise you are stuck with what is on the contract table.
What Your Conveyancer Checks Before Auction
A good Melbourne conveyancer will comb through two key documents: the contract of sale and the vendor's statement, commonly called the Section 32. The Section 32 is a legal disclosure the seller must give you before you sign anything. It lists things like title information, easements, outgoings, planning overlays and any owners corporation details. If a vendor fails to provide it before you sign, or gives false or incomplete information, the law allows serious consequences including potential rescission and penalties.
That review is not box ticking. In practical terms, your conveyancer is hunting for red flags that affect value or liveability, such as:
- Easements that prevent you extending the kitchen in that Preston weatherboard
- A heritage overlay in Fitzroy North that limits the facade works you had planned
- Unpaid rates or special levies that become your headache after settlement
- Incomplete owners corporation certificates on a Docklands apartment that hide looming expenses
If something is off, your conveyancer can push for amendments or more disclosure before you risk a bid.
Why the Timing Matters in Victoria
Auctions are tightly regulated in this state. The auction rules and information statement must be displayed before bidding, the auctioneer must announce key conditions, bids cannot be accepted after the fall of the hammer, and vendor bids are only allowed within the rules. By bidding, you accept the contract terms that were on display, and you cannot insert conditions like finance approval or a longer settlement after the fact. There is no cooling off after the seller and buyer sign.
For private sales, Victoria does offer a three business day cooling off period. But that right disappears if the property is sold at public auction or within three clear business days before or after the auction date. Many buyers do not realise that a successful pre auction offer can also remove cooling off.
Deposits and How to Plan for Them
There is no law that sets the deposit amount in Victoria. Ten per cent is common, but it is negotiable and can be paid as a part deposit with the balance due on a specified date if the seller agrees and the contract is amended accordingly. The deposit must be held in trust by the agent, the seller's lawyer or their conveyancer unless both parties agree to an early release. Plan the logistics before you bid, including payment method and timing, because you will be expected to pay promptly after signing.
If a seller later asks for an early deposit release under Section 27, your conveyancer will check whether the requirements are met and whether you should consent. Understand what you are giving up before you sign any release form.
Pre Auction Contract Tweaks You Can Only Do Beforehand
Because an auction contract is unconditional, the only way to change it is to negotiate before the big day. A conveyancer will talk to the agent and vendor's lawyer to lock in variations in writing, for example:
Settlement period: Maybe you need 60 days instead of 30 because your current lease ends later.
Deposit arrangements: You might need a lower upfront amount on the day, with the balance due within a few business days.
Inclusions: Clarify that the Miele fridge or outdoor heater stays, to avoid awkward post auction disputes.
Special conditions: For example, access for measuring up or quotes, or a condition that outstanding building permits be finalised before settlement.
Once agreed, these changes go into a written amendment or special condition and form part of the contract you will sign if you win. If the seller will not agree, at least you know your position before you bid.
Finance, Building Checks and the Reality of an Unconditional Purchase
When you buy at auction you cannot add a finance clause after the fall of the hammer. Most lenders will not fund a purchase if the contract terms or the title throw up surprises they do not like. Your conveyancer's pre auction review helps you avoid signing up to risks your lender will decline.
Equally, any building or pest issues you discover after auction are yours to live with. Pre purchase inspections in Australia typically follow Standard AS 4349.1, which sets out what a competent report covers, from the subfloor and roof space to the immediate site. If the property is on stumps, for example, you want to know about damp subfloors or termite activity before you bid.
What Happens If You Win
Immediately after the auction you will be invited to sign the contract and pay the deposit on the terms agreed. Once both parties have signed and the deposit is paid, the sale is binding and enforceable. There is no cooling off. The sale is then finalised at settlement when the balance is paid and the title transfers. Your conveyancer will manage the transfer, liaise with your lender, adjust rates and charges and prepare you for settlement day.
Why Auctions Feel Risky, and How a Conveyancer Removes the Guesswork
Auctions are designed to create urgency. The auctioneer sets the bidding rhythm, crowd energy rises, and it is easy to overreach on emotion. On top of that, Victoria has refreshed its auction regulations, replacing the 2014 rules with the Sale of Land (Public Auctions) Regulations 2024. Enforcement around underquoting has also intensified through Consumer Affairs Victoria. It is a fast moving space. A conveyancer keeps you anchored to the contract and the facts.
Melbourne Examples That Show Where a Pre Auction Review Pays Off
Inner north terrace with an unregistered right of way: Your conveyancer picks up that the laneway access is not on title and it affects future parking plans. You bid with eyes open or walk away.
Bayside unit with owners corporation issues: The OC certificate shows a special levy for concrete spalling. You adjust your bidding limit to allow for it.
Eastern suburbs house with a drainage easement: That dream pool in Mitcham is a no go. Better to find out on Thursday than five minutes after the auction.
West Footscray period home with recent renovations: Your conveyancer checks permits and compliance. If paperwork is missing, you can push for evidence before auction or avoid a costly problem later.
How to Get Yourself Auction Ready
Ask for the contract and Section 32 as soon as the property hits the market. Give your conveyancer time to work, not just the Friday night before a Saturday auction. The vendor must provide the Section 32 before you sign, so it should be available for review during the campaign.
Decide your limit based on facts, not auction fever. Use recent sales and allow for costs like stamp duty and lender's mortgage insurance if you are under 20 per cent deposit. If you plan to bid above your pre approval, talk to your broker first.
Book your building and pest inspection early. A written AS 4349.1 report gives you the detail you need.
Sort the deposit logistics. Confirm with the agent how they will accept payment on the day and negotiate any part deposit or timing changes beforehand so it is written into the contract.
Lock in your contract tweaks. If you need 60 or 90 days, or you want specific inclusions, have your conveyancer agree it in writing before auction.
Read the auction rules on the day. They must be displayed at the site before bidding starts. If you are unsure, ask the auctioneer a reasonable question before you bid.
Common Myths, Busted
Myth: You can add a finance clause after you win. Reality: You cannot. The contract is unconditional and you cannot introduce conditions after the auction.
Myth: The deposit is always 10 per cent and non negotiable. Reality: Ten per cent is common but not mandated. You can negotiate a part deposit or different timing if the seller agrees and the contract is changed.
Myth: Pre auction offers are safer because you get cooling off. Reality: If the acceptance is within three clear business days of the auction date, you do not get cooling off.
Myth: The agent can take your deposit and hold it however they like. Reality: Deposits must be held in trust by the agent, lawyer or conveyancer, unless special rules are followed, and any early release should be considered carefully with advice.
What Does a Conveyancer Cost Compared to the Risk of Skipping One?
Fees vary depending on the property type and the complexity of the title or owners corporation. The cost of a pre auction review and a handful of targeted amendments is modest compared with the risk of buying a property with hidden legal or building problems. Think of it as insurance against expensive surprises, and a way to bid more confidently.
Final Take
In Melbourne's auction market, preparation beats bravado. You do not legally need a conveyancer to raise a paddle, but you will almost certainly want one. They will review the Section 32 and the contract, negotiate any changes before you are locked in, flag building and title risks, and make sure your deposit and settlement arrangements suit your situation. That prep work turns auction day from a gamble into a plan.
Need Help Before You Bid?
Pearson Chambers Conveyancing reviews Section 32 vendor statements and contracts for Melbourne buyers every day. If you would like clear answers and a simple plan for auction day, get in touch for more details and a free Section 32 contract review.
Phone: 03 9969 2405 Email: contact@pearsonchambers.com.au