The sale of a property at an auction results in an unconditional contract on the property. It is, however, only a contract and is still required to settle before the purchaser receives any funds in their bank account.
What safeguards can a vendor put in place to try and ensure that the contract proceeds to settlement? As with any auction agreement, a deposit should be paid on the fall of the hammer. If this deposit is not paid, this may signify a lack of commitment on behalf of the prospective purchaser to complete the purchase.
It is also not prudent to enter into any on-going contractual arrangements (say the purchase of another property) until you have confirmation that the deposit has been paid and you feel comfortable that the purchaser is going to complete the transaction.
If you would like to discuss your property transfer and conveyancing transaction with an Auckland lawyer please contact the approachable team at Quay Law.
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