The Buyers Obligations

Prior To An Auction

If you are the successful purchaser at the auction, the property will exchange at that time with no cooling off period. It is therefore necessary to have had the contract checked by your conveyancer and any reports completed, i.e. building inspections, pest inspections and strata inspections. Finance should also be arranged prior to the auction date.

New legislation now requires all bidders to register prior to bidding at an auction. Your details (see below) will be recorded by the agent in the Bidders Record and you will be supplied with a bidder’s number which should be visible when you bid. The selling agent will also furnish you with a Bidder’s Guide. Even though you have registered, it is still your choice whether you bid.

If you are going to bid at an auction on behalf of another party, you must supply the agent an authority letter from them, authorizing you to bid on their behalf. The letter should include the person’s name, address and the number of their proof of identity (see below). In the case of bidding on behalf of a company, the letter should be on letterhead with the ABN recorded as the company’s proof of identity. You will still need to register yourself if you are bidding on someone’s behalf.

Registering to bid can happen anytime prior to the auction commencing. If you arrive late at the auction, and you haven’t registered you must find the agent and immediately register. An auctioneer can not accept a bid from an unregistered person.

Acceptable Identification

  • Passport
  • Driver’s license
  • Council or water rates notice
  • Senior’s card or centrelink card.

Or two of the following (showing your name):

  • Birth certificate
  • Credit card or ATM card
  • Medicare card

Plus (showing your address)

  • Statutory declaration
  • Utilities invoice
  • Leasing agreement

The details of your registration are only available to the Department of Fair Trading and not to be used by the agent for any other purpose.

At The Auction

The auctioneer will be given the “Reserve Price” by the agent on the owner’s behalf and it will not be made public. This is the lowest price that the owner will accept. If the highest bid on the day is greater than the reserve price, then the property is sold “under the hammer”. The successful bidder must immediately sign the contract and pay a deposit (normally 10%) If the bids fail to make the reserve price (i.e the property is passed in) the agent will negotiate with the bidders or the property will go back on the market at a nominated price.

The Vendor of the property is allowed to make one bid or have one bid made on their behalf. The auctioneer must announce that it is a vendor’s bid.

The auctioneer will also have visible other statutory requirements that must be adhered to by all parties.

Buying By Private Treaty

Once a property has been negotiated, your conveyancer will need to check the contract and any required inspections should be carried out prior to formal exchange taking place. Upon exchange (signing of the contracts by both seller and purchaser), the purchaser will pay a deposit (usually 10%) and the property will then be taken off the market to other purchasers. The settlement period (often 6 weeks) allows for the solicitors to organize the handing over of Title Deeds, and both parties to pack. The purchaser will normally organize a pre-settlement inspection for the day of or the day prior to settlement to check that the property is in the same condition as when it exchanged.

The keys will be available for collection after settlement from the agent.