When considering selling a property by auction it is best to obtain the advice of your auctioneer/estate agent. Auctions can be a good way for a seller to achieve the best price for a property where there is a demand for it.
We would prepare a sale contract and copy title documents and attends the auction on your behalf.
When selling by auction it is common that a reserve price is placed on the property. If the bids on the day of the auction to not reach the reserve figure the auctioneer will take instructions from the seller and withdraw the property from the auction. If bids are received above the reserve, the auctioneer will continue to accept bids until the final bid is receive and accepted.
Conditions of sales are then signed by the seller and the purchaser and the purchaser must produce a cheque for the contract deposit of 10% of the purchase price. The completion date of the sale will already have been inserted in the contract and the contract is signed unconditionally.
This means that the purchaser must have either sufficient funds of their own to pay the full purchase price or have obtained loan approval for a loan to cover this before bidding at the auction.