Auction Process

About Auctions and PropertyBids

If you are the successful bidder at auction:

You will be offered a contract in the same terms that is displayed before the auction, you cannot make the contract subject to any further conditions (for example, obtaining finance or having a longer settlement period) unless the vendor agrees to them and there is no cooling-off period. Contract is Unconditional

Before You Bid:

Research the market, search the internet, attend auctions, speak with several estate agents and monitor auction results get independent, expert help on legal, finance and building matters.
An auction is a public sale, usually conducted by a licensed auctioneer, and governed by strict rules.
Our Auctions are conducted online for a specific time and date. Prospective buyers bid and the property is offered to the highest bidder.
There is an advertising campaign with open inspections for several weeks leading up to the auction date. In the lead-up, the Listing Agent may contact you to gauge your level of interest.
On the day or certain days of the auction, the property may be open for inspection, generally half an hour before the bidding starts or while the bidding is progressing online (this will be at the discretion of the listing Agent). This gives you a chance to have a look at the property, the relevant paperwork and the auction rules are available by listing agents.
By bidding, you accept the terms of the contract which are available by the Listing Agent before the commencement of the auction and also during the Auction. Any alternative conditions you may need to bid will have to be approved by the Listing Agent which you can contact at anytime.

Auction conduct

There are strict rules about how an auctioneer runs an auction, and how people participating must behave.
The auction rules and the auction information statement outlining auction laws, must be displayed or be available to view:

for at least 30 minutes before an auction starts
be electronically available by the listing Agent while the auction takes place.

The auction rules, information statement and announcements the auctioneer must make are set out in the Schedules, Acts & Legislation these may vary depending on which State or Territory the property is located in Australia. Substantial penalties may apply to anyone who breaks the auction rules.

Before bidding starts, the auctioneer will advise bidders:

the auction will be conducted according to the auction rules
the rules prohibit bids being accepted after the fall of the hammer
bidders will be identified on request
it is against the law to make a false bid, hinder another bidder, or in any way intentionally disrupt an auction
substantial fines apply to anyone who engages in illegal auction conduct
whether or not there will be vendor or co-owner bids
any additional conditions that apply to the auction.

It is illegal to disrupt an auction, but you can still ask questions. During the auction, anyone can ask the auctioneer (for online this can be done by email) a reasonable number of questions about the property, the contract, or the auction. If you are bidding, you can also ask the auctioneer to indicate who else made a bid. (for PropertyBids this is available by clicking on the bidders register any time)

Bidding at auction

Auctioneers have different ways of conducting an auction. With PropertyBids the Listing Agent will be aiming to encourage as many bidders as possible to compete, to achieve the highest possible price.
PropertyBids (the auctioneer) can set the amount by which bids increase. These are called rises or bidding advances.
You can bid at the amount stated by PropertyBids or offer an alternative amount. The auctioneer may choose to accept or reject that bid. Be clear about your bidding limit. To bid successfully:
Generally, the amount the bidding advances will decrease as the auction draws to a close.

PropertBids may:

refuse a bid at any time during the auction
if there is a dispute over a bid, resume the auction at the last undisputed bid or start the bidding again
refer a bid to the seller at any time before the conclusion of the auction
withdraw the property from sale at any time.

Vendor and co - owner bids:

Vendor and co-owner bids are allowed at auctions. If these bids are to be made at an
auction, the arrangements for making vendor and co-owner bids must be:

set out in the rules displayed before the auction starts
announced by the auctioneer at the start of the auction .

Vendor or Co - Owner bid:

The auctioneer bids on behalf of the seller because the seller is not satisfied with the
amount of the last bid. This type of bid:

can only be made by the auctioneer
must be announced by the auctioneer when the bid is made.
Be below the reserve price.

Dummy bidding:

All dummy bids are illegal and attract significant penalties.
A dummy bid is either a bid:

made by the vendor, in circumstances where the:

auction rules do not allow for such bids; and
auctioneer has not announced that such bids have been made.

made by a person who knows that the bid is being made on behalf of the vendor.

An auctioneer must not:

accept a bid at the auction if they know the bid was made by, or on behalf of the vendor, unless the bid was in accordance with the law and the auction's rules on vendor bids
falsely acknowledge a bid, where no bid was made.

Also, it is an offence for any person to procure another person to make a bid at an auction that is against the law.

Auction language:

Will Be Sold

The auctioneer may halt proceedings and may seek advice or instructions' from the
seller. They use this time to discuss the progress of the bidding with the seller.
If the bidding has reached to the reserve price (the lowest price at which the seller
will sell), the auctioneer will advise that the property will be sold

Passed in

If bids do not meet the seller's reserve, the auctioneer will seek more bids. If bids still do not meet the reserve, the property may be 'passed in' or 'withdrawn from auction'.
The highest bidder then gets first right to negotiate with the seller.

When is the property sold at auction:

There is no legally binding contract until both buyer and seller have signed the contract of sale.
If you are the successful bidder at the auction, you will:

be contacted by the Listing Agent to immediately sign the contract in the terms that were available prior to the start or during the auction.
Unless you have negotiated conditions with the vendor or Listing Agent prior to the end of the Auction.
not have a cooling-off period
sign the contract before the seller, to make your formal offer to buy the property. The seller accepts your offer by also signing the contract
have to pay the deposit specified in the contract (unless otherwise agreed).

When you and the seller have signed the contract and the deposit has been paid, the sale is binding and enforceable.
The sale is finalised at settlement when:

all checks have been made
the title and transfer documents have been exchanged
the balance of the purchase price has been paid.

Paying a Deposit after Auction:

When you sign the contract of sale after an auction, you will need to provide a deposit. There are no laws about the amount of deposit but it is usually 10 per cent of the purchase price and will be specified by the Listing Agent.
Deposits can be made in any way depending on the terms and conditions set by the Listing Agent. Check with the Agent as to what options are available to pay the deposit.
Before the auction you can ask the Agent if they will accept a part deposit with the remaining amount due on a specified date. This would require a change to the contract. The seller may or may not agree to this arrangement. The deposit must be held by the seller's estate agent, conveyancer or legal practitioner in a trust account until the settlement date.