Checklist for Conducting Real Estate Auction
1. Eligibility for Conducting an Auction
- Ensure the auctioneer is one of the following:
- An estate agent
- An agent’s representative
- An accredited auctioneer (approved between February 1994 and February 1995)
- Verify if the owner or part-owner is auctioning their own property
2. Auctioneer’s Responsibilities
- Adhere to the Sale of Land Act 1962 and the Sale of Land (Public Auctions) Regulations 2014
- Display information and make announcements before starting the auction
- Control bidding during the auction
- Make bids on behalf of a seller to advance bidding (if applicable)
- Accept bids from co-owners or their representatives who are genuinely bidding
3. Prohibited Actions for Auctioneers
- Do not accept bids by or for a seller, except for co-owners
- Avoid making or accepting fictitious (dummy) bids
- Refrain from accepting late bids after the property is knocked down to the winner
4. Displaying Information
- Display for at least 30 minutes before the auction:
- Auction rules
- Prescribed information statement
- Any other relevant conditions (e.g., contract of sale conditions)
- Select and display the appropriate rules from the Sale of Land (Public Auctions) Regulations 2014
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5. Mandatory Announcements
- Announce general rules before bidding starts:
- Auction conduct rules
- Prohibition of late bids
- Bidders’ identification upon request
- Laws and fines regarding false bids, disruptions, and bid prevention
- Announce specific rules depending on the auction:
- Prohibitions or permissions for vendor bids
- Co-owners’ bidding rights and number of bidding co-owners
6. Controlling the Auction
- Set bidding amounts
- Refuse any bid when necessary
- Refer bids to the seller
- Withdraw the property from sale or restart bidding if required
7. Handling Late Bids
- Do not accept late bids post-auction
- Do not refer late bids to the auctioneer, seller, or others
- In case of post-auction private sale, refer late bids to the seller
- Pass on all offers unless instructed otherwise by the seller
8. Passing in a Property
- If passed in below reserve price, negotiate first with the highest bidder
- Decide on accepting late bids after negotiation with the highest bidder
9. Post-Auction Protocols
- If passed in on a vendor bid, clearly state it in all subsequent advertising or marketing
- Ensure publishers printing the last bid amount are informed of the vendor bid status
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