Potential buyers should be aware that a property sold on auction is not necessarily a bargain buy. This is because the property on auction isn’t necessarily being sold due to financial distress. Property owners now frequently turn to auction as a means of selling their property as soon as possible and for as a high a price as possible. When planning on buying a property on auction, it is important to do your homework and come prepared. This is what you need to know about property auctions:

There are different types of properties that can be bought on auction:

What to do before the auction:

Before the auction, there are certain things you can do to prepare, including:

What to do at the auction:

When arriving at the auction, there are certain processes that need to be followed before you can bid on the property:

What will happen after the auction:

After the auction, if the buyer of the property is dissatisfied with the property for whatever reason, it is too late. This is because auction properties are sold “voetstoots”, which means “as is”. This is one of the main reasons why it is so important to view the property as part of your preparation before the auction. It’s also important to note that if the buyer defaults on the sale, the seller can take legal action and force the buyer to fulfil the contract. Before bidding on a property, it is important to make sure that you want to buy and can afford to buy the property being auctioned, as breaching the contract may have serious financial and legal repercussions.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)