What Happens After Winning a Residential Property Auction?
15th September, 2025
You’ve just secured the winning bid at a residential property auction in New South Wales. Congratulations -this is a significant step. However, the auction is only the beginning. Knowing exactly what happens next is essential to ensure the process moves forward smoothly and legally.
Immediate Contract Signing and No Cooling-Off Period
Immediately after the auction, you are required to sign the contract of sale. In NSW, the fall of the hammer is considered the point of exchange. There is no cooling-off period when purchasing at auction, so you are legally bound to complete the sale. Because of this, it’s vital to have reviewed the contract and obtained legal advice before auction day.
Paying the Deposit: What Counts as “Immediately”?
You will also need to pay a deposit, typically 10% of the purchase price. This must be paid on the spot, either by bank cheque or electronic funds transfer, depending on what was agreed with the agent prior to the auction. The deposit is usually held in a trust account until settlement. In some cases, a vendor may request early release of these funds. However, agreeing to this carries financial risk, so always seek legal advice before giving consent.
Sorting Out Your Finance Quickly
After the contract is signed and the deposit is paid, your focus must shift to finance. Even if you had pre-approval, you would now need formal approval from your lender. This process often includes a property valuation. If the valuation comes in lower than your bid, your loan amount could be reduced. This is why purchasers should avoid bidding beyond their financial limit, even under pressure.
Once your loan is approved, your lender will issue a letter of offer and a mortgage contract. These documents outline all key terms, including interest rates, repayment terms, and fees. Your conveyancer will review these documents carefully. Missing or misunderstood clauses at this stage are reviewed, avoiding future complications.
Preparing for Settlement Day
The standard settlement period in NSW is 42 days unless the contract specifies otherwise. During this period, your legal representative will carry out final checks, liaise with your lender, and prepare for settlement. On settlement day, the final balance is paid, the property is legally transferred into your name, and all parties exchange documents. You are not required to attend in person, as your conveyancer will manage this on your behalf.
After settlement, you can collect the keys and officially take possession of the property. While this is the final step, issues can still arise if earlier steps weren’t handled correctly. Finance delays, contract disputes, or problems with title registration can all derail the process if not carefully managed.
Why Early Legal Support Still Matters After Auction
Engaging a conveyancer before the auction remains a smart move. Their role doesn’t end at review, as they guide you through the entire post-auction process: ensuring compliance, protecting your interests, and coordinating with all relevant parties.
How We Can Help
At Bangalow Conveyancing, we specialise in helping clients navigate the complexities of buying at auction in NSW. Whether you’re preparing to bid or have just secured a property, our conveyancing team provides expert guidance from contract to settlement. Contact us today to ensure your post-auction process is handled efficiently, legally, and with peace of mind.
