Auctioneer re-opened the auction after hammer fall

Discussion in 'The Buying & Selling Process' started by Karl2019, 9th Apr, 2021.

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  1. Karl2019

    Karl2019 Member

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    i attended a property auction in rural NSW, bidding was between me and one other bidder, the bidding reached the reserve and the property was on the market. Bidding stalled and i was the highest bidder, the auctioneer called
    "going once", "going twice", "Sold", the gravel fell, the auctioneer pointed to me and shouted "Sold to bidder number 5", which was me. Then after a moment, the loosing bidder shouted that he wants to deliver one more bid, the auctioneer said "sorry mate too late, we can not accept late bids", then after a short argument between them, i was shocked when i heard the auctioneer saying "we will re-open the auction, we have a bidder here that wants to re-open thew auction", i shouted "no you can not re-open the auction", the auctioneer answered "yes i can do whatever i want" and he immediately took a new bid from the loosing bidder, i had only one second to decide what to do, either "shout loudly" and cause a Chaos or continue bidding, so out of my shock i put my hand up and never put it down until i won the auction again.
    After the auction i spoke to the auctioneer and told him that what he has done was wrong, he said the loosing bidder thought that he was the highest bidder, that was his reasoning. i said but that does not give you authority to reopen the auction. we were handed a fact sheet before the auction started and it had this condition stated clearly, that "the auctioneer has no authority to take late bids, that is after the fall of the hammer". All i got from them is an apology and i had no option but to sign the contract. i am still happy with the price.The total amount we are talking about here is not in the hundreds of thousands but a sub 100k property. Regardless of the amount, what do you think are my options here now? i wrote to the real estate agent and asked them to compensate me for the extra amount that i had to pay (about 7k), did not hear back from them. i sent a complaint to the Fair trading department against the real estate agent and still to hear back from them.
     
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  2. thatbum

    thatbum Well-Known Member

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    Probably to get legal advice asap, or suck it up.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    The OFT administers the Property Stock & Business Agents Act & Regulations for the conduct of auctions.

    Auctions

    If you don't get a satisfactory response for disciplinary action from OFT, raise it with your local member.
     
  4. Squirrell

    Squirrell Well-Known Member

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    I read somewhere that (in victoria at least) that auctions are not legally binding, despite the pretence. Ie a sale must be in writing.
     
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  5. Squirrell

    Squirrell Well-Known Member

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  6. Joynz

    Joynz Well-Known Member

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  7. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    In NSW an auctioneer can not accept a bid after the fall of the hammer.
     
    Last edited: 9th Apr, 2021
  8. Shazz@

    Shazz@ Well-Known Member

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    I hope you have witnesses to this.
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  10. GoOnAndTell

    GoOnAndTell Well-Known Member

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    Probably a bit late but I would have considered playing bulldust back, made sure I read the contract and the under bidder nicked off then written the price I had won at the first time.

    If the auction is just a dog and pony show then and rules don't apply ....

    Edited to remove naughty words so half the post wasn't astrix
     
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  11. Karl2019

    Karl2019 Member

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    Thanks. yes if i do not get satisfactory results from OFT i will raise it to the NCAT. Many real estate agents do not know the rules, that same agent wanted to take my right of doing my own conveyancing, and said "you can not do your own" and i insisted that it is my legal right, only until their solicitor confirmed to them that i have the right to do my own conveyancing. And the agent got the shock of their life, because they never knew it.
     
  12. Karl2019

    Karl2019 Member

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    They can not deny what happened. I have written communication between me and the vendor and their solicitor speaking about the misconsuct that happened at the auction. If a judge of law calls them to testify they can not deny that it happened. They admit that it happened but they want me to handle the issue with the auctioneer and not them. Thry are just happy to take my money and put the blame on the auctioneer
     
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  13. fols

    fols Well-Known Member

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    That is a clear breach. The bid should not stand.

    Take action ASAP.
     
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  14. Karl2019

    Karl2019 Member

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    It was a normal property auction by a registered real estate agent and they
    Why is it late? Your rights as a citizen should stand regrdless if you complain on the spot or after a week. I did complain on the spot but my right was ignored.
     
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  15. Karl2019

    Karl2019 Member

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    A summary of these auction conditions was handed in at auction registration, and it was headed by the NSW Goverment Office of Fair Trading
    Buying property at an auction
    The auctioneer is trying to convince me that he is practicing this condition "if there is a disputed bid, the auctioneer is the sole arbitrator and makes the final decision". I objected to him and said you are interprering the condition to what suits you. This condition is to apply before the end of the auction, if 2 bidders claim to be the highest bidders then its up to the auctioneer to decide which bid was delivered first. But this does not cancel the previois condition which clearly states that an auctioneer has no right to accept a late bid, after the fall of the hammer.
     
  16. Karl2019

    Karl2019 Member

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    I am pretty confident that this was a breach of the auction conditions set by the goverment. But what i am not sure of is how serious would the office of fair trading take this misconduct and if they have the jurisdiction to order a compensation to be paid. Shall i wait for the reply of the OFT? they said they will get back to me within 14 days, or shall i go ahead with the NCAT?
     
  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes, you need a response from OFT. You then involve your local member if the response is unsatisfactory.

    It may lead to disciplinary action on the agency or the auctioneer. As for compensation, don't know if OFT can offer compensation or overturn the result of the auction.
     
  18. GoOnAndTell

    GoOnAndTell Well-Known Member

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    Don't get me wrong i think you were in the right then and are still in the right now. I am just saying i would have made my stand then and their once i had made sure the under bidder had gone away. Now you are going to have to play a bit of he said/she said and everyone is busy covering their arse. Then you are going to have to fight for it and it it will just be tiring.
     

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