This article is from the Australian Property Journal archive
THE Victorian Government said new property auctions introduced on June 30 will stay.
Consumer Affairs Minister Tony Robinson said the amendments under the Sale of Land Regulations 2005 prohibit any new bids being accepted after the hammer has fallen.
“These changes will ensure the highest bidder will not be “gazumped” at auctions by bidders coming in after the fall of the hammer. People at an auction expect that when the hammer falls that’s the end of the bidding and that price will stand.
“But until now, the status of late bids was unclear and confusing for purchasers and vendors, meaning that a third party could come in after the hammer had fallen and offer a higher price for the property,” he added.
The changes apply to all residential, commercial, industrial and rural properties.
Under the changes, auctioneers will have to announce before bidding starts that late bids and offers are prohibited.
The prohibition on late bids is a compulsory requirement that will need to be included in the rules that auctioneers must display before an auction starts.
The new regulations will not apply if the successful bidder or vendor fails to sign the contract after the auction and the vendor wishes to continue with a private sale or where a property is passed in at auction below the reserve price.
Australian Property Journal
