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.
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- → 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?
- → 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?
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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?
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- → 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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