Buying at Auctions
Ask the agent for a copy of the New Zealand Residential Property Sale & Purchase Agreements Guide, you can obtain this from our individual property information packs.
If you are the successful buyer you will have to sign acknowledgement that you have been given the guide.
Contract of Sale
Before the auction we suggest that your solicitor check the Contract of Sale, inspect the title and investigate any legal matters relating to the purchase.
Ask the agent about the settlement If not suitable to you, sometimes special arrangements can be made.
If you are successful, a 10% deposit is usually required on the day of auction.
Who is Buying?
Decide before the auction whose name the property will be purchased in and ensure that person attends the auction.
Bidding on an Unconditional Basis
Check that you are in a position to bid on an unconditional basis. Finance needs to be confirmed before you begin bidding. It is best to arrange finance well before auction day.
Arriving at Auction
Arrive at the property well in time for the auction and make yourself known to the agent.
Position yourself so you can clearly see and hear the auctioneer.
Ensure the auctioneer can see you clearly and bid either by hand movement or calling out your bid .
Be involved in the bidding from the beginning. Show your competition you are serious. Don’t wait till the end to bid
- you may miss out!
Remember the agent or a colleague are always available to assist you during the auction.
The Hammer Comes Down
When the hammer comes down, the highest bidder has purchased the property.
If the bidding has not reached an acceptable level, then the highest bidder will usually have the first right to buy the property
at a price set by the owner.
After the Auction
The successful bidder will be asked to sign the sale and purchase agreement and to pay the deposit.
Revised Auction Form
The ADLSi/REINZ Particulars and Conditions of Sale of Real Estate by Auction Fourth Edition 2012(3) will be released this coming Tuesday, 24 June 2014. This will be made available on the e-forms platform from that date and hard copies will be available to purchase shortly after that time.
The changes are only in respect of the “Conduct of Auction” provisions on page 1 of the form.
1. There is a new clause which expressly reserves the vendor’s right to withdraw the property at any time before it is sold. This right exists in any event.
2. The current clause 2.5 dealing with how vendor bids are placed will change consistent with the Fair Trading Act. The auction form will make it clear that the vendor has right to bid either personally, by a representative or through the auctioneer below the reserve. This right also exists currently.
3. The formatting of the first page is more spread out generally.