Belle Property

form _r 4 BIDDERS GUIDE CONT’D Land and Business (Sale and Conveyancing) Act1994 section 24I and section 24J(1)(f) Guide to the sale of residential property by auction Dummy and Vendor bidding It is against the law for the vendor of the property, or a person acting on behalf of the vendor, to make a bid at the auction. This type of activity is called dummy bidding and can attract a maximum penalty of $20,000. However, the vendor of the property is entitled to have up to three bids made on their behalf by the auctioneer, who must announce each such bid as a ‘vendor bid’. The amount of a vendor bid must be less than the vendor’s reserve price. Interrupting Auctions It is against the law to knowingly prevent a rival bidder from freely bidding at an auction, or to harass a bidder. It is also against the law to do anything with the intention of preventing, causing a major disruption to, or causing cancellation of an auction. A maximum penalty of $20,000 applies. Cooling-off period There is no cooling-off period when you buy at auction. If you are the successful bidder at auction no further bids can be made or accepted. You must then sign a binding sale contract as soon as possible after the conclusion of the auction. You will usually be required to pay a deposit at the time. The deposit amount is usually around 10% of the purchase price, however you may seek to negotiate a lesser amount with the agent before the auction. If the property is passed in at auction and if you made a bid at the auction then any sale contract you enter into before midnight on the same day as the auction, as a result of further negotiations with the vendor, is not subject to a cooling-off period. Your privacy The agent is not permitted to disclose information on the bidders register to anyone unless required to by an authorised person under the Fair Trading Act 1987. Disclaimer: This publication is a plain language guide to your rights and responsibilities. It must not be relied upon as legal advice. For more information please refer to the appropriate legislation or seek independent legal advice. p. 10