On auction morning a NSW vendor tells the auctioneer she will text her reserve price once she sees how bidding goes. What do the auction conditions require?
Correct Answer
D) The reserve must be given to the auctioneer in writing before the auction starts
The conditions that apply to auctions of residential property or rural land in NSW require the vendor's reserve price to be given in writing to the auctioneer before the auction commences. The highest bidder is the purchaser, subject to any reserve. Settling the reserve in writing beforehand protects the integrity of the bidding.
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- → In NSW, if a property receives three bids above the advertised price range during an expressions of interest campaign, what must the agent do regarding the advertised price?
- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
- → Tom plans to bid at a NSW house auction on behalf of his sister, who will instruct him by phone from Perth. Neither holds power of attorney. What must Tom do to bid for her?
- → Before a NSW residential auction, the vendor asks the auctioneer to make two vendor bids if bidding stalls, both announced as vendor bids. What must the auctioneer tell the vendor?
- → A buyer arrives to register at a NSW residential auction with only her overseas passport, which does not show her address. What will allow her to register?
- → Two brothers co-own a NSW house being sold at auction, and one brother wants to bid to buy out the other. What must happen for the co-owner to make more than one bid?
- → A NSW house was passed in at auction on the auctioneer's vendor bid of $1.4 million (invented). The next week the agent's online listing says 'Passed in at $1.4m, now for sale'. What is wrong with this?
- → The agency agreement for a Penrith home records an estimated selling price of $780,000. The agent's draft online listing reads 'Offers over $780,000'. Is the listing compliant?
- → A sales agent tells a caller that a Kogarah unit is likely to sell between $640,000 and $700,000. What record does the Act require, and for how long?
- → A vendor tells his agent the rear granny flat is ‘fully council approved’. Without checking, the agent repeats this to buyers; one of them buys the property relying on it, and it proves false. Can the agent commit an offence?
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NSW Fair Trading serves an agent with a written notice asking for evidence that a price guide he gave buyers was reasonable. What happens if he ignores the notice?
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The agency agreement for a Penrith home records an estimated selling price of $780,000. The agent's draft online listing reads 'Offers over $780,000'. Is the listing compliant?