Property purchases need to be in writing. There are two types of written contracts usually used: a contract of sale, and an auction contract. It is important to discuss clauses in all written contracts with your lawyer. It is recommended that you seek legal advice before signing any contract.
Contract of sale:
The contract is prepared by the vendor's lawyer. It will contain details of the parties, the terms of purchase, a description of the property and chattels, the date of the sale and the date of possession. It may also contain additional terms as agreed between the purchaser and the vendor. When you sign the contract you make an offer to the vendor. Once the vendor accepts the offer and signs, a contract for the sale has been made and you are bound to the contract.
The agent will expect the successful bidder to sign the contract and pay a deposit cheque immediately after the auction finishes. The buyer is legally bound the moment they sign the contract. Cooling-off rights do not apply to auction contracts.