Definitions and FAQs .
What is a genuine bid ? A bid made by a buyer . What is a vendor bid ? A bid made by the Auctioneer on behalf of the vendor / seller . Who can make a vendor bid ? Only the Auctioneer . Does the Auctioneer have to declare a vendor bid each time ? Yes . How many bids can a vendor make ? There is no restriction . What is a reserve price ? The price nominated by the vendor below which they will not sell .
What does “ passed in ” mean ? The bidding has not reached the vendor ’ s reserve price and the property is not sold .
If the property is passed in who gets the first opportunity to secure the property ? The highest bidder gets first right to secure the property when it is passed in . No other buyers will be referred until such time as the highest bidder has had a fair and reasonable opportunity to secure the property .
If the property is passed in on a “ vendor bid ” what happens ? The vendor via the vendor ’ s agent is at liberty to negotiate a sale with any genuine buyers .
Do I have to register prior to bidding at an Auction ? No .
Do I have to pay a deposit at the Auction ? You will be able to find out the terms of sale by viewing the Section 32 Statement and Contract prior to the Auction . The majority of Auctioned properties require a deposit , which is usually around 10 % of the purchase price . For this reason , it ’ s important you have a cheque book on hand so you can pay the required deposit if you are the successful purchaser . The deposit is usually payable upon signing of the Contract documentation .
What is a Buyers ’ Advocate ? A person who is commissioned to act on behalf of a buyer . If you use one make sure they are a Licenced Estate Agent .