Buying at Auction in Victoria: Check the Contract Before You Bid

At a Victorian auction, the contract is signed and the deposit paid on the day, straight after the hammer falls. There is no cooling-off period. So the time to read the contract and Section 32 is before auction day, not after.

This guide covers what the rules say, what is changing, and what to look for in the contract before you bid.

Can I back out after buying at auction?

Generally, no. Cooling-off rights do not apply to a property bought at a public auction, or to a contract signed within three clear business days before or after a publicly advertised auction. Once you have signed the contract and paid the deposit, the sale is binding.

That is why the contract matters even more at auction than in a private sale. Whatever it says, you are agreeing to it when you bid.

Can I add a finance condition or change the terms?

Not after you win. By bidding, you accept the contract on display, and you cannot add conditions such as finance approval or a longer settlement period unless the seller agrees.

If you want something changed, such as a smaller deposit or a different settlement date, ask the agent before the auction. If the seller agrees, have your conveyancer or lawyer make sure the change is written into the contract.

When do I get the contract and Section 32?

Ask the agent for the full contract and Section 32 as soon as you are interested in the property. Under the current rules, the seller has to give you the Section 32 before you sign. If you wait for it, that can leave very little time.

This is changing. From 1 June 2027, sellers will have to make the Section 32 available at least 14 days before an auction. That rule is not in force yet, so for now it is up to you to ask early.

What is new for auctions from 16 October 2026

For auctions held on or after 16 October 2026, the agent must publish the seller's reserve price at least seven days before the auction. The reserve is the lowest price the seller will accept. The Statement of Information is also being replaced by a new Property Price Statement.

A published reserve helps you decide whether a property is within your budget before you spend money on inspections and reviews. It tells you nothing about the contract, so the checks below still apply.

What to check in the contract before you bid

Most Victorian contracts use the same standard form, with special conditions added for the sale. The special conditions are where the surprises usually are. These are worth finding before auction day:

• The deposit. How much, and when it is due. There is no legal minimum, but 10 per cent on the day is usual. If you bring a bank cheque for 10 per cent of your top price and buy for less, your deposit will be more than 10 per cent.
• The settlement date. Whether it gives you enough time for your finance, and to sell your current home if you need to.
• Late settlement costs. Some contracts make the buyer pay the seller's costs if settlement is late, such as bridging finance, interest and accommodation. Check whether those costs are capped.
• Deleted standard protections. Some contracts delete general conditions that would otherwise protect you, such as the right to hold back part of the price at settlement if the property is damaged.
• "As inspected" clauses. Many contracts say you buy the buildings as they are and cannot claim for defects. A building and pest inspection before the auction is how you find out what you are accepting.
• Default terms. What happens if you cannot settle, including how much the seller can keep.
• Dates and deadlines. Every date the contract sets, including clauses that move settlement around the Christmas and New Year period.

What in the Section 32 matters most

The Section 32, or vendor's statement, is the seller's disclosure about the property. Before auction day, look for:

• Title. Mortgages, easements and covenants, and whether any of them affect what you plan to do, such as extending or building a second dwelling.
• Planning. The zone and any overlays, such as heritage, flooding or bushfire.
• Building permits. Permits for work done in the last seven years, and whether recent renovations appear in them.
• Owners corporation. For units and townhouses: the fees, any special levy, and any major works planned.
• Outgoings and services. Rates, water charges, and which services are connected. Sewerage, for example, is not always mains.

Our Section 32 guide goes through each of these in more detail.

A simple timeline

As soon as you are interested

Get the contract and Section 32 from the agent. Pick up the due diligence checklist, which sellers must have available at open inspections. It points to things like owners corporations, flood and fire risk, and insurance for renovations. Ask a licensed conveyancer or property lawyer to review the documents.

Before the auction

Arrange finance pre-approval and a building and pest inspection. Ask the agent about any change you want to the deposit or settlement date. Check the published reserve price, and decide your limit.

On the day

Bring the deposit in the form the agent has agreed. The auction rules must be on display before bidding starts. If the seller is allowed a vendor bid, the auctioneer must say so at the start and announce the bid when it is made, and only the auctioneer can make it. Dummy bidding is illegal, and you can ask the auctioneer to identify who else has bid.

If it is passed in

If bidding does not reach the reserve, the highest bidder gets the first right to negotiate with the seller. A contract signed within three clear business days after the auction still has no cooling-off period.

Get a free report before you bid

AI4Convey reads Victorian contracts of sale and Section 32 statements and emails you a plain-English report, usually in about five minutes. It lists the key dates, the clauses that could cost you money, what each special condition does, and which of the seller's required disclosures we found. You can see a sample report first.

A licensed conveyancer or property lawyer from our panel receives the same report and may contact you. The report is general information, not legal advice, and it can miss things. Use it to prepare your questions, then have a professional review the full contract before you bid.

Upload your contract and Section 32 as one PDF. It is free.

Sources: Consumer Affairs Victoria, Buying property at auction and New changes to property sales and underquoting laws. Checked 11 October 2026.