Is there a cooling-off period if I buy at auction?

There is no statutory cooling-off period for buying property at auction in New Zealand. When the auctioneer's hammer falls and your bid is accepted, you are usually bound by an unconditional contract on the terms set out in the auction conditions, and you will normally have to pay a deposit immediately. A person who backs out risks losing the deposit and may be sued for damages. Cancelling may be possible only if the contract has specific grounds, such as the seller's misrepresentation, or if the property was sold in breach of the auction rules. Speak to your lawyer immediately, but expect that it will be difficult. For the future, do your due diligence before the auction, get a building report and finance approval, and set a firm limit.