Bidding at auction is non-binding?

I just came across this article which states that if you bid and win at an auction you're not legally required to go ahead with sale until you sign the contract of sale. Auctions Exposed As Non-Binding! - Lawyers Conveyancing

 

I have never heard of an agent witholding a contract of sale until the last moments before auction.

 

I thought I read on here (and it was news to me) that the auctioneer can sign on behalf of the bidder?

 

My pet peeve is when the auctioneer laughs at your low increments and wont accept them.

 

Article refers to Victoria.

In Queensland, at the beginning of an auction I attended, the auctioneer stated that if a winning bidder (all bidders must be registered) fails to sign the contract, then the auctioneer can sign a legally binding contract on the buyer's behalf. I have heard that the auctioneer can also sign for the vendor.
Marg

 

According to this he is right (in Victoria at least) Selling property by auction

 

Though if the bidder doesnt give personal details before bidding, and just drives off after winning the auction....

 

Don't bidders need to register in Victoria?

In NSW: "the highest bidder is legally obliged to sign and exchange contracts" Buying_property_at_an_auction

 

What is legal and enforcing it are two different things. The agent should ensure that bidders are registered with id, but they dont always.

 

Well they are supposed to do what's best for their client..

Same thing when I'm buying real estate and agens use frustrating tactics....i rarely get annoyed and understand that I would be doing the same when selling. I'm happy to take it cos i know i dish it too.

 

In SA the auctioneer can sign for purchaser if they will not. Contract is formed vendor can sue

 

Nope, we don't. You can participate in the auction at any time during the bidding process without registering.

 

Always wear a pair of runners to auctions in Melbourne

 

Yep this is how we buy our IPs as live overseas.

Basically have the agent on the phone bid remotely and then wire the deposit after winning the auction.

We had one agent that refused to allow us to bid but must happen pretty often as every other agent has been fine with it.

For some reason its always the auctioneer that signs the contract on our behalf NOT the agent that we have doing the bidding.

Would this stand up legally if we refused to wire the deposit afterwards......no idea but yes the auctioneer is able to sign on behalf of the bidder (and I suspect if you tried to weasel out .....the vendor could take you to court for the deposit on the basis of this signature).

 

Already knew this and that is the reason why you are asked to come in right away.

However most of the time the REA would already know who you are, have your mobile number and email address. Likely you would of needed a car to get there so can record your number plate. Likely you are purchasing in an area you already live in (PPOR buyers) so chances are they have your actual address from a previous purchase or a missed out property when you signed a contract before, along with having a drivers licence from an inspection/offer.

It is the same as in VIC that you can cancel your offer up until you have received your signed copy of the contract. So you might of submitted an offer and signed on the REIV contract and the REA met with the vendors and they signed it however until you receive the contract you can cancel your offer. This could be literally as the REA is walking up your front driveway to hand you the contract as all parties need to have a completed contract for it to be binding.

 

This is correct, the Auctioneer has all the powers to sign in South Australia.

 

Wouldn't most people just list the property for sale again if the market was doing ok? Surely getting another buyer would be easier and cheaper than going to court

 

Why?

Its simply a tactic that is designed to challenge you into proving you got money and are willing to bid more. Most people let pride and ego takeover and pay more money for it.

The auctioneer have declined my $1k bids in the past, I shrug my shoulders and continue. Eventually they do accept my $1k bid.

 

They will always take your bid in the future as the vendor is listening and the vendors will know that there was another 1k if it wasn’t accepted which would breach the REA working with the best intentions for the vendor.

Same time people don’t want to have 100x1k bids when the house is worth 700k and the bids are at 500k as it just wastes everyone’s time but still acceptable.

 

Agreed. It would be absolutely annoying for everyone to throw in a $1k bid at the beginning and continue to try that crap on.

I use it when the bidding slows with the sole purpose of demoralising the opponent. Doesn't work if they have set a higher limit than me though