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Regulating Auctions |
The Property, Stock and Business Agents Act 2002 (NSW) ("the new Act") comes into effect on 1 August 2003. |
The new Act tightens the regulation of the property services industry, addressing concerns about fairness and transparency of auctions, the competency of auctioneers, misleading statements by agents about property values, and dummy bidding over-inflating property markets. |
The vendor's real estate agent must record a bidder's details in a Bidders' Record, and only after proof of identity. |
Agents face fines of $11,000 for not maintaining a Bidders' Record. |
The new Act says an auctioneer can only take a bid from a bidder with a bidding number and who has been recorded before the bid is taken into a Bidders' Record. |
Auctioneers face fines of $11,000 for taking bids from bidders not recorded in a Bidders' Record. |
The new Act ensures that Vendors can only make one dummy bid which must be notified in the conditions of sale and the auctioneer must clearly state the bid is a bid by the Vendor, or on behalf of the Vendor or Auctioneer as soon as the bid is taken. |
Contravention can attract fines as high as $22,000. |
The new Act also introduces: |
- Compulsory accreditation for agents acting as auctioneers.
- Increased obligations to notify potential bidders of their rights.
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