Property, Stock and Business Agents Amendment (Auctions) Regulation 2007 (NSW)

2007 No 8

New South Wales

Property, Stock and Business Agents

Amendment (Auctions) Regulation

2007

under the

Property, Stock and Business Agents Act 2002

Her Excellency the Governor, with the advice of the Executive Council, has made the following Regulation under the Property, Stock and Business Agents Act 2002.

DIANE BEAMER, M.P., Minister for Fair Trading

Explanatory note
The object of this Regulation is to amend the Property, Stock and Business Agents Regulation 2003 as a consequence of amendments made to the Property, Stock and Business Agents Act 2002 by the Property, Stock and Business Agents Amendment Act 2006. The amendments to the Regulation aim to:

(a)	further regulate the bidding process at auctions for the sale of residential property or rural land by limiting the number of bids that may be made on behalf of the seller and prescribing the manner in which such bids must be made, and
2007 No 8	Property, Stock and Business Agents Amendment (Auctions) Regulation
Clause 1	2007

Property, Stock and Business Agents Amendment

(Auctions) Regulation 2007

under the

Property, Stock and Business Agents Act 2002

1      Name of Regulation

This Regulation is the Property, Stock and Business Agents Amendment
(Auctions) Regulation 2007.

2      Commencement

This Regulation commences on 1 March 2007.

3 Amendment of Property, Stock and Business Agents Regulation 2003

The Property, Stock and Business Agents Regulation 2003 is amended as set out in Schedule 1.

Property, Stock and Business Agents Amendment (Auctions) Regulation	2007 No 8
2007
Amendments	Schedule 1
Schedule 1	Amendments

(Clause 3)

[1]      Clause 14

Omit the clause. Insert instead:

14 Definitions

In this Part:
property means residential property or rural land.

Note. The terms residential property and rural land are defined in section 3 of the Act.

vendor bid means a bid made by or on behalf of the seller.

[2]      Clause 15 Making the Bidders Record

Insert “, and the vendor bid (if any),” after “highest bid accepted” in clause 15
(1) (h).

[3]      Clause 18 Conditions of sale by auction

Omit clause 18 (2) (b) and (c). Insert instead:

(b)	Subject to subclause (2A), the auctioneer may make only one vendor bid at an auction for the sale of residential property or rural land and no other vendor bid may be made by the auctioneer or any other person.
(c)	Immediately before making a vendor bid the auctioneer must announce that the bid is made on behalf of the seller or announce “vendor bid”.

[4]      Clause 18 (2A)

Insert after clause 18 (2):

(2A)	The following conditions, in addition to those prescribed by subclauses (1) and (2), are prescribed as applicable to and in respect of the sale by auction of co-owned residential property or rural land or the sale of such land by a seller as executor or administrator:
(a) More than one vendor bid may be made to purchase the interest of a co-owner.

2007 No 8	Property, Stock and Business Agents Amendment (Auctions) Regulation 2007
Schedule 1	Amendments

(c)	Before the commencement of the auction, the auctioneer must announce that bids to purchase the interest of another co-owner or to purchase as executor or administrator may be made by or on behalf of the seller.
(d)	Before the commencement of the auction, the auctioneer must announce the bidder registration number of any co-owner, executor or administrator or any person registered to bid on behalf of any co-owner, executor or administrator.

[5]      Clause 20 Warnings about bidders’ obligations

Insert after clause 20 (2):

(2A)

The notice required to be given by section 66 (4) of the Act is to
be in the following form:

Penalty for dummy bidding

It is an offence against the Property, Stock and Business Agents
Act 2002 for a person to do any of the following:

(a)	make a bid as the seller,
(b)	make a bid on behalf of the seller (unless the person is the auctioneer),
(c)	procure another person to make a bid on behalf of the seller.

constitutes a bid made on behalf of the seller.

Any bid made with the dominant purpose of benefiting the seller though the seller did not:

(a) request the bid, or