Bidders Guide
User Manual:
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You will not be able to bid at an auction of residential and
rural property in NSW unless you give the selling agent
your name and address and show proof of your identity.
Your details will be recorded by the agent in the Bidders
Record and at the auction you will be given a bidder´s
number. Registering for an auction does not mean you
must bid. Registering simply gives you the right to bid.
Who needs to register?
If you are bidding to buy the property jointly with another
person, for example, a spouse or partner, only one of you
needs to register.
You need to register if you are bidding for another person
or a company, and you need to show the agent a letter of
authority from them, authorising you to bid on their
behalf. This also applies if you are bidding on behalf of
someone on the telephone.
If you are bidding for another person the letter of
authority must include the person´s name, address and
the number on their proof of identity (eg. driver´s licence).
If you are bidding for a company the letter of authority
must be on the company letterhead and the ABN will be
recorded in the Bidders Record as the company´s proof
of identity.
Proof of identity
To register, you must present a card or document issued
by government or a financial institution, that shows your
name and address, for example:
●driver´s licence or learner´s permit
●vehicle registration paper
●council rates notice.
If you do not have this kind of proof of identity, you can
use two documents that together show your name and
address.
One must show your name and be issued by a
government or financial institution, for example:
●passport
●Medicare card
●ATM/Eftpos card
●credit card or store card
●birth certificate
●citizenship papers.
The other must show your address, for example:
●utilities bill (eg. gas, electricity, telephone)
●real estate rental agreement
●statutory declaration stating your address.
When to register
You can register with the selling agent at any time prior to
the auction, such as when you inspect the property, or on
the day itself.
If you pre-register, you will still need to show the agent
your proof of identity on auction day. The agent will then
give you your bidder's number.
What happens at registration
The agent will write your name, address and the number
of your proof of identity in the Bidders Record and, if you
are bidding for someone else or a company, their name,
address and proof of identity details. The agent will then
give you your bidder´s number, which must be displayed
when you bid.
What if I arrive at the auction late?
If you arrive after the auction has started and wish to bid,
you will need to quickly find the agent and register or
present your proof of identity, if you have pre-registered.
If you need to make a bid immediately, hold up your hand
to let the auctioneer know you are going to make a bid
after you have registered.
Bidders guide
Residential and rural property auctions
January 2018 FTR31
As soon as you have a bidder´s number, the auctioneer
can accept your bids. Return your bidder´s number to the
agent after the auction.
Your privacy
The agent is not permitted to show the Bidders Record to
anyone, including the property owner. Only an authorised
person from NSW Fair Trading is permitted to see the
Bidders Record.
The agent must store the Bidders Record securely and
cannot use it for any purpose.
Auction conditions
This auction is being conducted under certain conditions
that are set by law.
The auctioneer will have these conditions on display
before the auction so that you can read them. The
auction conditions include:
●the highest bidder is the purchaser, subject to any
reserve price
●the auctioneer is entitled to make one bid only on
behalf of the seller
●before the auction, the auctioneer must announce
that the auctioneer is permitted to make one bid on
behalf of the seller
●the auctioneer must announce immediately before,
or in the process of making the bid, that he/she is
making a vendor bid
●the auctioneer can refuse a bid that is not in the
interests of the seller
●the auctioneer has no authority to accept a late bid,
that is, a bid after the fall of the hammer
●if there is a disputed bid, the auctioneer is the sole
arbitrator and makes the final decision
●the successful buyer´s name must be given to the
auctioneer as soon as possible.
Successful bids
If you are the successful bidder, you must sign the sale
contract and pay a deposit on the spot, usually ten per
cent of the purchase price. There is no cooling-off period
when you buy at auction.
After the exchange of contracts, your solicitor or
conveyancer will carry out various searches on the
property. Your solicitor and the seller´s legal
representative will then arrange for settlement at which
time you must pay the balance of the purchase price.
Dummy bidding and collusion
It is illegal to make dummy bids at an auction.
The seller of the property is entitled to have one bid
made on their behalf by the auctioneer. When the seller´s
bid is made the auctioneer must announce it as a vendor
bid.
If you make dummy bids for the seller, you may be
prosecuted and fined up to $55,000. The property seller
who asked you to bid can also be fined up to $55,000, as
can the agent and the auctioneer if they were involved in
the arrangement.
It is an offence to collude with someone to interfere with
free and open competition at the auction. This offence
carries a maximum fine of $55,000.
Co-owners and executors
A co-owner, executor or administrator or someone
bidding on their behalf, may make more than one bid to
purchase the property as long as:
●this is outlined in the auction conditions
●the auctioneer has announced this before the start of
bidding at the auction
●the auctioneer announces before the start of the
auction, the bidder registration number of any co-
owner, executor, administrator, or someone bidding
on their behalf.
January 2018 FTR31
www.fairtrading.nsw.gov.au
Fair Trading enquiries 13 32 20
TTY 1300 723 404
Language assistance 13 14 50
This fact sheet must not be relied on as
legal advice. For more information about
this topic, refer to the appropriate
legislation.
© State of New South Wales through NSW Fair Trading
We encourage the reuse of this information under the Creative Commons Attribution 4.0
licence. See NSW Fair Trading's copyright policy at www.fairtrading.nsw.gov.au or email
publications@finance.nsw.gov.au
