Part 4AAuctions

Part 4A—Auctions 24I—Standard conditions of auction for residential land (1) The regulations may prescribe conditions (standard conditions of auction) that will apply as contractual conditions to any auction conducted by an agent for the sale of residential land. (2) The standard conditions of auction will be binding as between— (a) the vendor and the purchaser; and (b) the vendor and the auctioneer; and (c) the bidders and the auctioneer. 24J—Preliminary actions and records required for auctions of residential land (1) The responsible agent must ensure that the following requirements are satisfied in relation to an auction for the sale of residential land (in addition to other requirements under this Act): (a) the standard conditions of auction must be made available for perusal by members of the public at the place at which the auction is to be conducted for at least 30 minutes before the auction is due to commence; (b) the auctioneer must, immediately before the auction commences, audibly announce to members of the public attending the auction that the standard conditions of auction (as required to be made available for perusal before the auction) apply to the auction as binding contractual conditions; (ba) the reserve price for the land must not, at any time before or during the auction, be set at an amount exceeding 110% of the amount specified in the sales agency agreement as the selling price sought by, or acceptable to, the vendor; (c) a written record (an auction record) must be made and kept by the agent, consisting of the following which must be made before the commencement of the auction: (i) a record of the reserve price for the land and any changes in the reserve price made before the commencement of the auction; (ii) a register (a bidders register) of the persons intending to bid at the auction, containing the details relating to the intending bidders required by the regulations; (iii) other records containing details relating to the auction required by the regulations; (d) if a bid is to be allowed by a person who was not registered in the bidders register as an intending bidder before the commencement of the auction, the auction must be interrupted and the person's details entered in the bidders register; (e) before details of an intending bidder are entered in the bidders register, the identity of the intending bidder must be established in accordance with the regulations, and if the intending bidder is to bid on behalf of another person, the person's authority to so act must be established in accordance with the regulations and proof must be obtained in accordance with the regulations of the other person's identity; (f) each person registered in the bidders register must, when the person's details are being taken for entry in the register, be supplied with a written guide relating to the sale of residential land by auction in the form approved by the Commissioner for the purposes of this section; (g) any change in the reserve price made during the auction must be entered in the auction record; (h) an entry must be made in the auction record recording the amount of each bid and (except in the case of a bid referred to in paragraph (i)) the identifying number allocated to the person who made the bid; (i) if the auctioneer makes a bid on behalf of the vendor (see section 24O), an entry must be made in the auction record recording the amount of the bid and that the bid was a vendor bid; (j) other details relating to bidding or subsequent events must be entered in the auction record in accordance with the regulations; (k) any entry to be made in the auction record must be made immediately on the happening of the event to be recorded in the entry. (2) A person must not enter details in an auction record, or furnish details for entry in an auction record, that the person knows, or has reason to believe, are false in a material particular. (3) A person who has made an auction record or had access to the record must not disclose or make any use of information in the record except— (a) as authorised under this Part; or (b) as required by an authorised officer. (4) A contravention of this section does not affect the validity of a bid or a contract for the sale of the land. responsible agent in relation to an auction for the sale of land means the agent who has entered into a sales agency agreement with the vendor for the sale of the land, whether or not the agent is to conduct the auction through the instrumentality of another agent. 24K—Registered bidders only at auctions of residential land (1) An auctioneer at a sale by auction of residential land— (a) must not take a bid from a person unless— (i) the person has been registered in the bidders register for the auction and the auctioneer is in possession of that register when the bid is taken; and (ii) the person is identified at the auction by the person displaying a unique identifier (comprising a number, letter, colour or some other identifying feature) allocated to the person for the purposes of the auction and recorded in the bidders register as the unique identifier allocated to the person; and (b) must, when taking the bid, audibly announce the bid as having been taken from a bidder with that person's unique identifier. (2) An auctioneer who refuses to take a bid from a person because of subsection (1) does not incur a liability to any person as a result of that refusal. (3) The taking of a bid in contravention of this section does not affect the validity of the bid or a contract for the sale of the land. 24L—Collusive practices at auctions of land or businesses (1) A person must not, by a collusive practice relating to the sale by auction of land or a business, induce or attempt to induce any other person— (a) to abstain from bidding, or limit his or her bidding, at the auction; or (b) to do any other act or thing that might in any way prevent or tend to prevent free and open competition at the auction. (2) A person must not, as a result of a collusive practice relating to a sale by auction of land or a business— (a) abstain from bidding, or limit his or her bidding, or agree to abstain from bidding, or to limit his or her bidding, at the auction; or (b) do any other act or thing that might in any way prevent or tend to prevent free and open competition at the auction. (3) An auctioneer must not sell land or a business by auction unless notice is given prior to the auction, in such manner and in such terms as may be prescribed by the regulations, of the material parts of this section. (4) In this section— collusive practice includes an agreement, arrangement or understanding under which 1 person will, on being the successful bidder at an auction of land or a business (and whether or not subject to other conditions), allow another person to take over as purchaser of the land or business through the auctioneer at the auction price. 24M—Disruption of auction prohibited (1) An intending bidder at an auction of land or a business, or a person acting on behalf of an intending bidder, must not— (a) knowingly prevent or hinder any other person whom he or she believes is an actual or potential rival bidder from attending, participating in or freely bidding at the auction; or (b) harass any other person whom he or she believes is an actual or potential rival bidder with the intention of interfering with that other person's attendance at, participation in, or bidding at the auction. (2) A person must not do anything with the intention of preventing, causing a major disruption to, or causing the cancellation of, an auction of land or a business. 24N—Dummy bidding prohibited at auctions of land or businesses (1) This section applies subject to section 24O. (2) A vendor of land or a business must not make a bid at an auction of the land or business. (3) A person must not make a bid at an auction of land or a business knowing that the bid is being made on behalf of a vendor of the land or business. (4) For the purposes of subsection (3), a bid may be found to have been made on behalf of a vendor even though it is not made at the request of, or with the knowledge of, the vendor. (5) A person must not procure another person to make a bid at an auction of land or a business that is contrary to this section. (6) An auctioneer must not take a bid at an auction of land or a business if he or she knows that the bid was made by, or on behalf of, a vendor of the land or business. (7) An auctioneer must not purport to take a bid at an auction of land or a business when in fact no bid is being made. (8) A person who contravenes this section is guilty of an offence. (9) In this section— vendor of land or a business has the meaning assigned by section 3 and includes— (a) a mortgagee or other holder of a security interest in respect of the land or business; and (b) a person of a class prescribed by regulation. 24O—When vendor bid by auctioneer permitted (1) Despite section 24N and any other law, an auctioneer may make not more than 3 bids at an auction of residential land on behalf of the vendor of the land, or 1 or more bids at an auction of land (other than residential land) or a business on behalf of the vendor of the land or business, if— (a) the conditions under which the auction is conducted permit the making of such bids; and (b) before any bidding starts, the auctioneer audibly announces to the members of the public attending the auction that the conditions permit the making of such bids; and (c) immediately before, or in the process of making such a bid, the auctioneer audibly announces that the bid is a "vendor bid"; and (d) the amount of any such bid is less than the reserve price for the land or business. (2) In this section— vendor has the meaning assigned by section 24N. 24P—Last vendor bid must be identified if property passed in (1) This section applies if, at an auction of land or a business, the land or business is not sold and the last bid made before the auction stopped was a bid made by the auctioneer on behalf of the vendor of the land or business. (2) In making any statement while marketing the land or business, a person must not state the amount of the last bid without also stating that the bid was a bid made on behalf of the vendor of the land or business. (3) For the purposes of subsection (2), a statement is made while marketing land or a business if— (a) it is made in an advertisement in respect of the land or business that is published, or caused to be published, by the person; or (b) it is made (whether orally or in writing) to a person as a purchaser of the land or business. (4) A person who advises another person of the amount of the last bid to enable that amount to be published must not knowingly fail to disclose to the other person that the bid was a bid made on behalf of the vendor of the land or business. (5) A person who is a publisher of results of auctions must not publish the fact that the land or business was passed in for the amount of the last bid without also stating that the bid was made on behalf of the vendor of the land or business. (6) It is a defence to a charge against subsection (2) or (5) if the person making the statement, or publishing the amount— (a) was not present at the auction; and (b) relied on a statement made by a person who purported to know what happened at the auction. (7) It is sufficient compliance with subsection (2) or (5) if the amount is described as a "vendor bid". (8) In this section— vendor has the meaning assigned by section 24N.