NSW Cooling Off Period - Purchasing Property Before the Auction?

[David Chang]

We are keen to purchase a property pre-auction date and the agent has stated that the owner is open to discussion.

At this stage, we're prepared to pay the deposit subject to due diligence reports (building & pest inspection and strata report) should the owner accept our offer and also requested for future open inspection to be cancelled.

I understand that purchasing property which are to be sold via auction, meaning there's no cooling off period hence either the outcomes will either be:

• Putting non-refundable deposit and do due-diligence; if reports are bad, then we lose the deposit.
• Do due-diligence first and risking the property for another open inspection which will give agent the room to get another potential buyer (which we would prefer to avoid)

Is there any way under property law (in NSW), where if the owner accept our offer (prior to auction), we put down 5% deposit and for the agent to draw a contract with 5-10 days cooling-off period for us to do our due-diligence? Is this a possibility?

 

[Rod]

Yes, though not sure the other party will agree. They don't have to agree. Worth a try. And make sure the deposit is listed as fully refundable to avoid any doubt if you think due diligence has failed! It is your decision and yours alone to make.