As we head into what is shaping as a very active spring auction market it is important that potential purchasers to be aware of changes that were make a year ago to prevent bids after the fall of the hammer being accepted.
The REIV has found that since the law was changed it has helped to improve the conduct of auctions by ensuring that successful bidders are protected from being gazumped by a late bid.
In this environment it is a good idea for bidders at auction to ensure they make their bids in a clear and audible manner and stand where the auctioneer can clearly see them as once the auctioneer indicates it is sold they are unable to reopen the bidding.
The new law forms part of the auction rules which must be displayed at the auction at least 30 minutes before the auction begins. In addition to displaying the rules, before the auctioneer calls for bid he or she will announce to bidders that the rules of the auction prohibit the auctioneer from accepting bids or offers after the property has been knocked down to the highest bidder.
The person who is the highest bidder will then have the right, assuming they have reached the vendors reserve, of going inside to pay a deposit and sign the contract of sale. In the highly unlikely event that the successful bidder fails to sign the contract then the vendor will negotiate with interested parties.
If interested in learning more about this update please contact me today!
Tags: auction market, auction rules, auctioneer, reiv, spring auction
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