REIQ Best Practice Guidelines v03.23 - Flipbook - Page 31
i. reserve price;
ii. instructed deposit amount; and
iii. instructed settlement time frame.
(e) Member Auctioneers must not disclose to any
person (other than a person acting for the
Client) prior to an auction25:
i. the reserve price;
ii. an amount the Member Auctioneer
considers is a price likely to result in a
successful or acceptable bid; or
iii. a price guide.
(b) Member Auctioneers should discuss the
reserve price with the Client, including:
i. that the reserve price will be lowest
acceptable sale price unless the Client
approves a lower bid at auction;
(f) Member Auctioneers may only provide a CMA
or their written statement to a prospective
buyer if they have received written consent
from the Client.
ii. if the reserve price is reached or exceeded,
the property will become on the market and
the Member Auctioneer must accept the
highest bid made at the auction and can no
longer accept a bid from the Client
(commonly known as ‘vendor bid’)23;
iii. if the Member Auctioneer will or will not
announce to the bidders once the reserve
price is reached;
(g) Member Auctioneers must provide a statement
to the Client that the CMA is an estimation of
market value only and does not constitute a
valuation, unless the Member is a licensed
valuer.
7. NO RESERVE
iv. if the reserve price is not reached, that the
property may be passed in; and
Where the Client does not provide the Member
Auctioneer with a written reserve price prior to the
auction then the Member Auctioneer26:
v. that the Member Auctioneer may accept
verbal instructions from the Client at auction
with respect to the reserve price, deposit and
settlement date and how the verbal
instructions must be given.
(a) must caution the Client against selling the
property without a reserve price and advise
that the Member Auctioneer must accept the
highest bid at auction; and
(c) Member Auctioneers may only recommend a
reserve price to a Client (including to their Sales
Agent) if they also provide either a comparative
market analysis (CMA) or written explanation
confirming how they have estimated the
market value of property24.
(d) A CMA provided by a Member Auctioneer
must compare:
i. at least three (3) properties of a similar
standard or condition;
ii. sold within five (5) kilometres of the property;
and
iii. sold within the last six (6) months from the
auction date.
23
Property Occupations Regulation 2014, s 24
24
Property Occupations Act 2014, s 213 – penalties may apply
25
Property Occupations Act 2014, s 214 – penalties may apply
26
Property Occupations Act 2014, s 213 – penalties may apply
27
Property Occupations Regulation 2014, s 24
REIQ BEST PRACTICE GUIDELINES
V08.23
(b) will not allow a bid to be made by or on behalf
of the Client at the auction.
Reserve Notices and Forms
Available in Realworks
8. VENDOR BIDS
(a)
The Member Auctioneer may bid on behalf of the
Client at the auction provided always that the bid
does not exceed the reserve price27, and they have
written instructions from the Client authorising
them to make a vendor bid on their behalf.
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