Preparing For Auction
From 1 September 2003, 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 bidders 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 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.
When to register?
You can register with the selling agent at anytime prior to the auction, such as when you inspect the property, or on the day itself.
If you pre-register you will need to show the agent your proof of identity on auction day. The agent will then give you your bidders number.
What happens at registration?
The agent will write your name, address and the number of your proof 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 bidders number, which you must display 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. It should only take a few moments for the agent to note your details and give you a bidder number.
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. As soon as you have a bidder number, the auctioneer can accept your bids.
Your Privacy
The agent is not permitted to show the Bidders Record containing your details to anyone, including the property owner. Only an authorised person from the Office of Fair Trading is permitted to see the Bidders Record.
The agent must store the Bidders Record securely and cannot use the information it contains for any purpose.
Successful Bids
If you are the successful bidder, you must then sign the sale contract and pay the deposit on the spot. This is usually 10% of the purchase price. Remember, there is no cooling off period when you buy at auction.
After the exchange of your contracts, your solicitor or conveyancer will carry out various searches on the property prior to settlement. Your solicitor and the seller’s legal representative will then arrange for settlement. You must pay the balance of the purchase price upon settlement.
“HAPPY BIDDING”
www.fairtrading.nsw.gov.au