Conditions for Sale By Auction

 

Section 77, Property, Stock & Business Agents Act 2002 (NSW) and clauses 18 and 19, Property, Stock & Business Agents Regulation 2003 (NSW).

 

Clause 18 (1) – The following conditions are prescribed as applicable to and in respect of the sale by auction of land or livestock:

 

(a) The principal’s reserve price must be given in writing to the auctioneer before the auction commences.

 

(b) A bid for the seller cannot be made unless the auctioneer has, before the commencement of the auction, announced clearly and precisely the number of bids that may be made by or on behalf of the seller.

 

(c) The highest bidder is the purchaser, subject to any reserve price.

 

(d) In the event of a disputed bid, the auctioneer is the sole arbitrator and the auctioneer’s decision is final.

 

(e) The auctioneer may refuse to accept any bid that, in the auctioneer’s opinion, is not in the best interests of the seller.

 

(f) A bidder is taken to be a principal unless, before bidding, the bidder has given to the auctioneer a copy of a written authority to bid for or on behalf of another person.

 

(g) A bid cannot be made or accepted after the fall of the hammer.

 

(h) As soon as practicable after the fall of the hammer the purchaser is to sign the agreement (if any) for sale.

 

Clause 18 (2) – The following conditions, in addition to those prescribed by subclause (1), are prescribed as applicable to and in respect of the sale by auction of residential property or rural land:

 

(a) All bidders must be registered in the Bidders Record and display an identifying number when making a bid.

 

(b) Subject to subclause (2A), the auctioneer may make only one vendor bid at an auction for the sale of residential property or rural land and no other vendor bid may be made by the auctioneer or any other person.

 

(c) Immediately before making a vendor bid the auctioneer must announce that the bid is made on behalf of the seller or announce “vendor bid”.

 

Clause 18 (2A) – The following conditions, in addition to those prescribed by subclauses (1) and (2), are prescribed as applicable to and in respect of the sale by auction of co-owned residential property or rural land or the sale of such land by a seller as executor or administrator:

 

(a) More than one vendor bid may be made to purchase the interest of a co-owner.

 

(b) A bid by or on behalf of an executor or administrator may be made to purchase in that capacity.

 

(c) Before the commencement of the auction, the auctioneer must announce that bids to purchase the interest of another co-owner or to purchase as executor or administrator may be made by or on behalf or the seller.

 

(d) Before the commencement of the auction, the auctioneer must announce the bidder registration number of any co-owner, executor or adminstrator or any person registered to bid on behalf of any co-owner, executor or administrator.

 

Clause 18 (3) – The following condition, in addition to those prescribed by subclause (1), is prescribed as applicable to and in respect of the sale by auction of livestock: The purchaser of livestock must pay the stock and station agent who conducted the auction (or under whose immediate and direct supervision the auction was conducted) or the vendor the full amount of the purchase price:

 

(a) if that amount can reasonably be determined immediately after the fall of the hammer – before the close of the next business day following the auction, or

 

(b) if that amount cannot reasonably be determined immediately after the fall of the hammer – before the close of the next business day following determination of that amount,

 

unless some other time for payment is specified in a written agreement between the purchaser and the agent or the purchaser and the vendor made before the fall of the hammer.