Buying by private treaty

The most common way to buy a house or apartment in NSW is by private treaty. This is where a seller advertises the amount they would like to achieve for their property and then negotiates with prospective buyers.

The contract for sale becomes activated once you exchange contracts with the seller. At this time, you will also have to pay the full deposit on your place (usually 10% minus any holding deposit you have paid). However, this does not always mean you are locked in.

The standard contract for sale includes a ‘cooling off’ period during which you can change your mind.

Buying at auction

Auctions can sometimes seem daunting, not least because there is no ‘cooling off’ period. If the gavel comes down and you are the highest bidder you are usually bound to go through with the purchase, no matter how unfair the contract might be.

So long as you have your lawyer look over the contract for sale before you bid there is no reason an auction needs to be any riskier than buying by private treaty.

Before the auction, we will identify any terms that might not be in your favour and negotiate with the vendor’s solicitor to change them. We will also make sure you are buying exactly what you intended to and that it is in the condition you expect.

That way if your bid is the winning one, you can be sure the contract you sign will be in your interests.