In NSW, the auctioneer takes a bid on the vendor's behalf without announcing it as a vendor bid, and the property is then knocked down to a genuine bidder. What is the legal position?
Correct Answer
D) The unannounced vendor bid is an offence, even though a genuine bidder bought the property
NSW allows a vendor bid only where the right to make one has been reserved, and it must be made by the auctioneer and announced as a vendor bid. Taking an unannounced vendor bid is an offence and grounds for disciplinary action against the auctioneer and agent, and it is misleading conduct towards the bidders. A genuine bidder winning the auction does not cure the breach.
Why This Is the Correct Answer
Under NSW auction rules, a vendor bid may be made only by the auctioneer and must be announced as a vendor bid. Taking one without announcing it is an offence and a disciplinary matter, regardless of the fact that a genuine bidder ended up buying.
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- → 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?
- → An agent in NSW quotes a property at $800,000-$850,000 but sets the reserve at $900,000. Three weeks later, the agent receives feedback that most buyers are interested at $820,000-$840,000. What should the agent do to comply with underquoting legislation?
- → In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
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- → In NSW, if a property is passed in at auction, what are the vendor's immediate options?
- → 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?
- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
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