In this blog we explain in 5 minutes what you need to know about QLD PROPERTY AUCTIONS....

We dive into several topics that most people dont know about Auctions in QLD. From cooling-off laws to what happens at the fall of the hammer, we explain the process from start to finish. Have a read/listen - you might learn a new thing or two! 

Prefer to watch/listen? Click here to consume this content via YouTube!

Hi everybody - George Sourris, Empire Legal.

Today's topic: QLD PROPERTY AUCTIONS - everything you need to know! 

Hello ladies and gentlemen.

This week we're talking about the laws for Queensland Auctions.

The auction process. The auction process itself is strictly defined by legislation to ensure fairness for both buyers & sellers. Legislation requires all people buying an auction to provide their names, address and proof of identity before they can bid.

The above information must be provided for a bid to be accepted during an auction. The bidder will be provided with a number or a paddle, which must be displayed if you make a bid throughout the auction.

It is important to remember that you don't have to bid just because you're registered, but you must be registered if you intend to bid.  

Before the auction - make sure you: inspect the property, arrange your finance, get a property valuation, do your own research for the market, get a copy of the contract, and get legal advice about the terms and conditions in case you are the successful bidder. Make sure you ask the agent about: how much deposit they will ask for as a percentage of the winning bid, and how you'll need to pay for it - i.e. bank cheque bank transfer, etc. 

It is illegal for the seller or their agent to give you a price guide at auction. This is because they cannot know how high the bidding will go.

A property may appear on a listing website when you search by price. Guys, this is only for the purposes of the web search and is not designed as a price guide.

Sometimes an auctioneer may offer you a CMA, or Comparative Market Analysis. This is a document that offers information about what similar properties have sold for in the same area. They can only give you this document with the vendor's approval. Remember to do all the necessary checks before auction, such as: a title search, a building inspection, a pest inspection, a land tax search, and a swimming pool inspection, if relevant. 

The Queensland Government has a pre-auction checklist (click here) that you can download. If you need help with anything before auction, our team specialises in looking after clients with everything you need to know and be aware of before the auction.

At the auction. It is suggested that you have a maximum bid that you set before the auction and that you stick to it. If you are the successful bidder, you will have to settle the contract, even if you can't afford it.

There is no cooling-off period for buying at auction. If you are the successful bidder at auction, you will have to settle the contract, even if: the house doesn't pass building & pest inspections, you change your mind, or you can't afford it.

Keep in mind here, the cooling-off period also doesn't apply to a private treaty contract that is entered into within two business days of an unsuccessful auction of a property, in which the buyer was a registered bidder at the auction.  The terms of sale usually require you to bid on an unconditional basis. This means you can't have any conditions such as: finance or the completion of another sale, or building & pest. 

Registered bidders. if you want to bid, ask any questions you have about the property and register with the auctioneer. Only registered bidders can bid on the day. The auctioneer will give you a unique identifier such as a numbered paddle. 

Auctioneer responsibilities. Alright, so the auctioneer must have a current and valid license. An auctioneer license is the only type of license that permits a person to auction real estate. So, not a real estate agent or chattel auctioneer license.  However, it is possible that a person has more than one type of license. You can do a free online search (click here) to make sure they have a valid license.  

The auctioneer also needs to announce the conditions of the sale. These might include: the required deposit, inspection details and any other relevant details.  

The reserve price. This is a minimum sale price that the seller will accept. The seller sets this reserve price in writing with their agent before the auction. A seller doesn't have to set a reserve price, but most will choose to have one.

The auctioneer is allowed to tell you whether or not the seller has set a reserve price. However, the auctioneer must not tell you the reserve price itself. Once the price is reached during bidding, or no reserve price is set, the property will be "on the market". The auctioneer does not have to announce when a property is on the market, but they are allowed to do so if they wish.

If an announcement is made, it must be truthful.

Once a property is on the market, it means the auction must result in a sale. The winning bidder must purchase the property and the seller must sell. If the property doesn't reach the reserve price, you can negotiate with the seller after the auction. If you are the successful bidder, you must sign the contract immediately.

There are very serious legal consequences if you cannot settle on time. You may be forced to pay: the amount of your winning bid regardless of whether you had access to the money, the cost of re-auctioning, and any shortfall between your offer and the winning bid at the next auction.

Vendor bids. In Queensland, auctioneers can accept vendor or seller bids but only up to a reserve price.  Before the bid reaches reserve price, the auctioneer can bid on behalf of the seller or accept bids from the seller or their representative. The auctioneer must announce if a bid is a vendor bid. If a vendor bid is announced, you know that a reserve price has been set and that it has not yet been reached.

Once you reach reserve price, any more vendor bids will become false bids. False bids are illegal. 

Dummy bids. A "dummy bid" is an attempt to raise the bidding after the reserve price has been reached by the seller, their family or friends, the auctioneer or any other planted individual. Dummy bids are illegal.

Tip guys: organise insurance on the property as the property will be at the Purchaser's risk from 5pm on the next business day after the auction. If you need help with auctions, our team specialises in it.

Get in touch with us. Jump on our Instagram, our Facebook, our website.

Get in touch, guys. Chat soon.

George Souris. Empire Legal.

If you have any questions, you can email me: george@empirelegal.com.au. 

If this has added value, please share this blog / the YouTube video with a friend. 

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Gold Coast, Queensland, Australia.

---------------------------------------

We can help…

For simple, sunny, smooth sailing conveyancing - Empire Legal.

We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!

Any questions? Want to know more? Get in contact with us via the below form or via info@empirelegal.com.au.

Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.