Auction Terms and Conditions

Auctions must be conducted in accordance with certain conditions which are set out in the Property, Stock and Business Agents Regulation 2003.

Auctions of residential property or rural land

The following conditions apply:

1. The principal’s reserve price must be given in writing to the auctioneer before the auction commences.
2. A bid for the seller cannot be made unless the auctioneer has, before the commencement of the auction, announced clearly and precisely that a bid may be made on behalf of the seller by the auctioneer
3. The highest bidder is the purchaser, subject to any reserve price.
4. In the event of a disputed bid, the auctioneer is the sole arbitrator and the auctioneer’s decision is final.
5. The auctioneer may refuse to accept any bid that, in the auctioneer’s opinion, is not in the best interests of the seller.
6. A bidder is taken to be a principal unless, before bidding, the bidder has given to the auctioneer a copy of a written authority to bid for or on behalf of another person.
7. A bid cannot be made or accepted after the fall of the hammer.
8. As soon as practicable after the fall of the hammer the purchaser is to sign the agreement (if any) for sale.
9. All bidders must be registered in the Bidders Record and display an identifying number when making a bid.
10. One bid only may be made on behalf of the seller by the auctioneer on behalf of the seller
11. When making a bid on behalf of the seller, the auctioneer must clearly state that the bid was made on behalf of the seller.

Bidding by a co-owner or executor must be identified in the auction conditions.

Other Auction Notices

Penalty for collusive practices

It is an offence against the Property, Stock and Business Agents Act 2002 for a person to do any of the following as a result of a collusive practice, or to induce or attempt to induce another person by a collusive practice to do any of the following:

1. to abstain from bidding or
2. to bid to a limited extent only or
3. to do any other act or thing that might prevent free and open competition.

Severe penalties may be imposed on persons convicted of collusive practices.

Penalty for dummy bidding

It is an offence against the Property, Stock and Business Agents Act 2002 for a person to do any of the following:

1. make a bid as the seller,
2. make a bid on behalf of the seller (unless the person is the auctioneer),
3. procure another person to make a bid on behalf of the seller.

Any bid made with the dominant purpose of benefiting the seller constitutes a bid made on behalf of the seller. A bid may be found to be a bid made on behalf of the seller even though the seller did not:

1. request the bid, or
2. have any knowledge of the bid.

Severe penalties may be imposed on persons convicted of dummy bidding.

Successful bidders

The actual successful bidder at an auction sale must give to the auctioneer or an employee of the auctioneer:

1. the bidder’s name or
2. the name of the person on whose behalf the successful bid was made.