Going to an auction, or even thinking of going to an auction, to bid or not to bid may be the question, but in any event, it pays to be prepared.
The Property, Stock and Business Agent’s Act 2002 and the regulations thereto regulate the way that auctions of residential property and rural land are conducted in NSW.
For each auction, a Bidders Record, which includes the prescribed details of every registered bidder, has to be made. Once registered each bidder will receive a bidder’s number to be displayed during bidding. The Bidders record is subject to strict confidentiality requirements. The information contained in the Bidders Record may not be disclosed to anyone including the seller nor may it be used for any other purposes such as to contact bidders.
The auctioneer may not accept a bid from a person unless they are registered in the Bidders Record for the auction and have been given a bidder number. This applies to “telephone bidding” too.
You may prefer not to bid yourself in which case you may provide the selling agent with a letter authorising a third party to bid on your behalf. The letter of authority is required to set out the authorised bidder’s name, address and identifying number of their proof of identity. Where a licenced person acting as a buyer’s agent registers to bid, they may show their agency authority instead of a letter.
The proof of identity requirement is very flexible. The basic requirement is that the bidder’s proof of identity show their name and address and must be issued by a government authority or a financial institution for example a NSW driver licence or an Australian passport.
Alternatively, the bidder can provide two kinds of identity, at least one of which must be issued by a government authority or a financial institution and one which shows their address such as a Medicare card, a birth certificate, an ATM card together with a utilities bill or a rental agreement which shows their address.
If a couple is intending to buy a property together, only one of them needs to register as a bidder.
To save time on the day, and reduce your stress, a prospective buyer can register any time prior to the auction. However even if you have pre-registered remember to bring your proof of identity to the auction as the Agent will need to confirm the details before issuing you with a bidder number.
If you run late and the auction has already begun you will, none the less, need to register and receive a bidder number before you make your bid. In this situation you should approach one of the agency staff ASAP and indicate that you wish to make a bid.
Post auction the Act requires the agent responsible for the creation of the Bidders Record to keep it in a secure place for at least 3 years as part of their Register of Bidders Records.
If you require professional help with purchasing a property give us a call on (02) 9982 1655 or visit our Northern Beaches office located on Fisher Rd, Dee Why.
