Buying at an auction and conditions

It is significant to have your solicitor or conveyancer inspect the sale contract before the auction to make sure that the lot is in order. It is also important to have your finance prearranged and that you have made all the necessary quality inspections.

Take the time to find out what prices properties in the area have sell for, so you have a guide for the advertise value of the home you want.

If you want someone else to bid on your behalf, they should give the auctioneer a written authority from you, previous to the auction starts. The letter must include your name, address and particulars of proof of identity, such as your driver’s licence or passport number.

The auctioneer will have these conditions on show 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 property seller is allowed to one bid only


• before the auction, the auctioneer should announce if the seller has reserved the right to make a bid


• the auctioneer must announce when the seller's bid is completed


• the auctioneer can refuse a bid that is not in the benefit of the seller


• the auctioneer has no authority to accept a late bid, that is, a bid after the reduce 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 specified to the auctioneer as soon as possible


• it is an offence to get together with someone to interfere with free and open competition at the auction, for example, by arranging to make ‘dummy’ bids.