Fairtrading NSW Gov Au-Bidders Guide NSW Fair Trading
Fairtrading NSW Gov Au-Bidders Guide NSW Fair Trading
You need to register if you are bidding for another person or a company, and you need to
show the agent a letter of authority from them, authorising you to bid on their behalf. This
also applies if you are bidding on behalf of someone on the telephone.
If you are bidding for another person the letter of authority must include the person’s
name, address and the number on their proof of identity (eg. driver’s licence).
If you are bidding for a company the letter of authority must be on the company letterhead
and the ABN will be recorded in the Bidders Record as the company’s proof of identity.
Proof of identity
To register, you must present a card or document issued by government or a financial
institution, that shows your name and address, for example:
If you do not have this kind of proof of identity, you can use two documents that together
show your name and address.
One must show your name and be issued by a government or financial institution, for
example:
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passport
Medicare card
ATM/Eftpos card
credit card or store card
birth certificate
citizenship papers.
Certified copies of documents are not acceptable as proof of identity. Proof of identity
documents can be produced electronically if the agent consents. For example, emailing a
photo or PDF of a proof of identity document. Producing documents via an audio-visual
link, such as holding up documents during a Zoom chat is not permitted.
When to register
You can register with the selling agent at any time prior to the auction, such as when you
inspect the property, or on the day itself.
If you pre-register, you will still need to show the agent your proof of identity on auction
day. The agent will then give you your bidder's number.
If you need to make a bid immediately, hold up your hand to let the auctioneer know you
are going to make a bid after you have registered.
As soon as you have a bidder’s number, the auctioneer can accept your bids. Return your
bidder’s number to the agent after the auction.
Your privacy
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The agent is not permitted to show the Bidders Record to anyone, including the property
owner. Only an authorised person from NSW Fair Trading is permitted to see the Bidders
Record.
The agent must store the Bidders Record securely and cannot use it for any purpose.
Auction conditions
This auction is being conducted under certain conditions that are set by law.
The auctioneer will have these conditions on display before the auction so that you can
read them. The auction conditions include:
Successful bids
If you are the successful bidder, you must sign the sale contract and pay a deposit on the
spot, usually ten per cent of the purchase price. There is no cooling-off period when you
buy at auction.
After the exchange of contracts, your solicitor or conveyancer will carry out various
searches on the property. Your solicitor and the seller’s legal representative will then
arrange for settlement at which time you must pay the balance of the purchase price.
The seller of the property is entitled to have one bid made on their behalf by the
auctioneer. When the seller’s bid is made the auctioneer must announce it as a vendor
bid.
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If you make dummy bids for the seller, you may be prosecuted and fined up to $55,000.
The property seller who asked you to bid can also be fined up to $55,000, as can the
agent and the auctioneer if they were involved in the arrangement.
It is an offence to collude with someone to interfere with free and open competition at the
auction. This offence carries a maximum fine of $55,000.
https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-
property/bidders-guide 16-02-23
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