im happy to take risk and buy sight unseen and appreciate the legal risks – however havent seen any recent listings. Anyone know when the next sydney/melbourne listings are coming on or when the auction will be?
Are you sure about that? My understanding was they are sold site unseen and the buyer has to take on the debt hence can’t go through normal auction process and same warranties around title arn’t provided hence cant use conventional bank finance until issues sorted
The victorian sheriff auction lists properties but there is limited stock (only 2 at the moment)
Who conducts a Sheriff’s auction?
A Sheriff’s auction is conducted by a Sheriff’s officer, not a real estate agent or auctioneer.
Sheriff’s auctions of real estate differ from usual auctions conducted by real estate agents/licensed auctioneers.
A property can not be inspected prior to auction as the Sheriff does not obtain possession of a property as part of the sale process.
A Sheriff’s auction does not operate under the Sale of Land Act 1962 and there is no requirement to provide a vendor’s statement under section 32 of the Sale of Land Act.
Unless the court orders otherwise, the Sheriff has a duty to obtain a fair price. The Sheriff sets a reserve price, however, the reserve price is not disclosed.
Interest in property
A person’s interest may be subject to any other interests in the property registered on the title to the property at the time of the auction, including mortgages and caveats. These other interests are noted on the advertisement of property to be sold at the Sheriff’s auction.
The extent of the interest being sold by the Sheriff will differ at each auction.
Process following a Sheriff’s auction
Prospective purchasers should note that different requirements apply following the completion of a Sheriff’s auction. In summary:
A sale of contract will be entered into. This is not a standard form contract.
On payment of the purchase price, the Sheriff provides the purchaser with a completed Transfer of Land form, which the purchaser can use to become registered as a proprietor of the property. The Sheriff does not provide the Certificate of Title.
Payment terms vary from auction to auction – refer to individual contract for details.
There are no adjustments made on the purchaser’s payment of the balance of the price.
The Sheriff does not deliver possession of the property upon a sale.
Stamp duty is payable on transfer of land from the Sheriff.
Prospective purchasers at a Sheriff’s auction should obtain legal advice in relation to the effect of other interests registered on title.
Well, I normally do much, much better trying to buy at a fair price, rather than a cheap price.
A couple of times I have bought a bargain, usually because the property has been mis-marketed, its potential not understood, or just lucky. For instance, I once bought a property the next business day after it went to auction with no buyers making a bid. It was a mortgagee sale and the bank signed it over for a song.
I nearly bought a property with a letterbox drop, but after much back and forth, they took it to market.