Undertake Pre-Auction Processes

Learner Guide
CPPREP4161 - Undertake pre-auction processes

Table of Contents
Overview ............................................................................................................................... 3
About This Resource............................................................................................................. 4
About Assessment ................................................................................................................ 5
Review Contract Details ........................................................................................................ 6
Identify and Document Property Details. ............................................................................. 14
Confirm Vendor Expectations.............................................................................................. 36
Prepare Auction Day Strategy ............................................................................................. 48
Required Knowledge ........................................................................................................... 69
Summary ............................................................................................................................ 72
Commonly Used Real Estate Terms ................................................................................... 73
References ......................................................................................................................... 81
CPPREP4161 Undertake pre-auction processes (VIC)

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Overview
This resource covers the unit CPPREP4161 - Undertake pre-auction processes.
This unit specifies the skills and knowledge required to undertake pre-auction processes.
It includes preparing a strategy for auctions, including liaising with the vendor or sales agent,
confirming the details of the contract and confirming the details of the property.
This unit applies to auctioneers or people seeking to work as auctioneers.
The unit may form part of the licensing requirements for persons engaged in real estate
activities in those States and Territories where these are regulated activities.
This unit of competency supports the work of licensed real estate agents, real estate
representatives and support staff engaged in preparing for auctions.

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About This Resource
This resource brings together information to develop your knowledge about this unit. The
information is designed to reflect the requirements of the unit and uses headings to makes it
easier to follow.
You should read through this resource to develop your knowledge in preparation for your
assessment. At the back of the resource are lists of references you may find useful to
review.
As a student it is important to extend your learning and to search out textbooks, internet
sites, talk to people at work and read newspaper articles and journals which can provide
additional learning material.
Your trainer may include additional information and provide activities, PowerPoint slide
presentations, and assessments in class to support your learning.

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About Assessment
Throughout your training we are committed to your learning by providing a training and
assessment framework that ensures the knowledge gained through training is translated into
practical on the job improvements.
You are going to be assessed for:
 Your performance and knowledge using written and practical activities that applies to
a workplace environment.
 Your ability to apply your learning to the workplace.
 Your ability to recognise common principles and actively use these on the job.
You will receive an overall result of Competent or Not Yet Competent for the assessment of
this unit. The assessment is a competency based assessment, which has no pass or fail.
You are either competent or not yet competent. Not Yet Competent means that you still are
in the process of understanding and acquiring the skills and knowledge required to be
marked competent.
The assessment process is made up of a number of assessment methods. You are required
to achieve a satisfactory result in each of these to be deemed competent overall.
All of your assessment and training is provided as a positive learning tool. Your
trainer/assessor will guide your learning and provide feedback on your responses to the
assessment. For valid and reliable assessment of this unit, a range of assessment methods
will be used to assess practical skills and knowledge.
Your assessment may be conducted through a combination of the following methods:
 Written Activity
 Case Study
 Observation
 Practical tasks
 Short answer questions
 Third Party Report
The assessment tool for this unit should be completed within the specified time period
following the delivery of the unit. If you feel you are not yet ready for assessment, discuss
this with your trainer/assessor.

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To be successful in this unit, you will need to relate your learning to your workplace. You
may be required to demonstrate your skills and be observed by your assessor in your
workplace environment. Some units provide for a simulated work environment, and your
trainer and assessor will outline the requirements in these instances.
Review Contract Details

Agreement to auction is obtained from seller according to agency practice and
legislative requirements
The first stage of preparing for an auction and completing a sale using the auction process
involves the obtaining of the agreement to auction the property from the seller.
Auctions
An auction is a public sale that will take place at a specific time and place after a marketing
strategy has been undertaken for a period of time before the auction day. The action will be
undertaken under a range of strict guidelines by an approved auctioneer.
Auction legislation states that:
 All bids made during an auction are final

 There is no cooling off period
 Once bidding has reached a certain point the property will become on the market all
bids placed after this have the chance to win the property
 The winning bidder must sign sales contracts straight after the auction

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Obtaining client agreement to auction the property in line with agency and legislative
practice
It is essential that this agreement is obtained in line with agency practice and legislative
requirements and this means that:
 Reasonable information about auctions must be provided to the seller

 The seller must understand any potential risks or benefits of choosing an auction as
their method of sale
 All disclosure requirements are met
 The seller must not be misled regarding their decision to auction the property
 The property may not be auctioned or advertises as available at auction without
authority to conduct the auction being obtained
Agreement to auction
The agreement to auction the property is the formal agreement of the seller to allow the
agency to list, auction and sell their property using approved auction formats and must be
obtained in writing.
The following would be documentation you need to access prior to option:
Seating order
 Catering instructions
 Agreement to auction
 Client agreement to auction
 Client agreement to list
 Sale authority
 Auction authority
Client agreement to list auction the property with agency is confirmed
Once the client has provided their agreement and approval to auction the property according
to the presentation that was undertaken it will be necessary to ensure that the client agrees
to auction the property with the agency is confirmed.
Obtain written confirmation
It will be necessary to ensure that the client agrees to auction the property is obtained in the
form of written confirmation.

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The written confirmation should contain a range of details including:
 Client Details
 Agency details
 Agent details
 Terms and conditions
 Roles and Responsibilities
 Client expectations and disclaimers
 Agency expectations and disclaimers
Sale authority
In real estate authority documents that pertain to property sales are documents that will be
used to formally provide authority to the agent or agency to manage and conduct the sale of
the property.
Auction authority
An auction authority can be provided to the agent by a prospective seller and provides the
agent with authority to sell the property at auction under the conditions specified in authority.
Ethical standards
Ethical standards are important to auctions. All sales that are conducted should be fair and
legal. Review the ethical standards and requirements within your organisation.
Communication
It will be necessary to ensure that a communication

strategy is developed in terms of how, when and
why the seller will be communicated with throughout
the process.
Neutrality in the auction process
It is important to always be neutral in the auction process. You should never show favour to
certain individuals throughout the bidding and allow equal opportunity for all to make bids
and be part of the auction. It is also the responsibility of the bidders to be somewhat
aggressive and make their bids known. Do your best to give everyone a chance to bid and
do not show any favouritism to others in the bid.

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Ethical management of the bidding process
The auctioneer is responsible for the ethical management of the bidding process. You will
need to be aware of any individuals who may be conducting dummy bids or being disruptive
and not allowing others to bid. You have the authority to stop an auction and call for security
as necessary. Make certain that you only use vendor bids as appropriate. This means only
placing vendor bids according to legislative requirements as well as only until the reserve
price is met.
Auctioneer role, responsibilities and risks
The auctioneer plays a big role in the auction. They organise the auction and manage the
bidding. You will want to go over their role to make sure they understand all of their
responsibilities and risks. One role of the auctioneer is to inspect the property prior to the
auction day. They need to do this according to agency practice and legislative requirements.
It will be necessary to ensure that the auctioneer has the opportunity to inspect the property
prior to the auction day so that:
 They can confirm all necessary features and aspects of the property
 They are able to plan the proceedings
 A suitable location for the auction is able to be determined
 The auctioneer can familiarise them with the property
 The auctioneer will have the opportunity to collect any required information
Access, read and interpret contract documentation.
Purpose and content of auction documentation are explained to seller
It is essential that the purpose and content of auction documentation are explained to the
seller in a clear and concise manner.
Auction documentation
Auction documentation may include:
 Authorities - There may be a range of authorities that need to be obtained in order

for the auction processes to be able to be conducted and these may include:
o Authority to list
o Authority to auction
o Authority to use a particular auctioneer
o Marketing authorities

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o Inspection authorities
 Contracts - There is a range of contracts that may be required, and these include:
o Contract to list and auction the property
o Contracts with auctioneer
o Sales and action contracts for selling process
 Displays - Display documentation may include:
o Brochures
o Flyers
o Information relating to the property
 Rules and conditions of auction - It will be necessary to ensure that all of the rules
and conditions of the action are placed in a document which may need to be
provided to persons partaking in the auction on the day.
Rules and conditions of the auction may include:
GENERAL RULES FOR THE CONDUCT OF PUBLIC AUCTIONS OF LAND
The auctioneer may make one or more bids on behalf of the vendor of the land at any time
during the auction.
The auctioneer may refuse any bid.
The auctioneer may determine the amount of which the bidding is to be advanced. The
auctioneer may withdraw the property from sale at any time.
The auctioneer may refer a bid to the vendor at any time before the conclusion of the
auction.
In the event of a dispute concerning a bid, the auctioneer may re-submit the property for sale
at the last undisputed bid or start the bidding again.
The auctioneer must not accept any bid or offer for a property that is made after the property
has been knocked down to the successful bidder unless the vendor or successful bidder at
the auction refuses to sign the contract of sale following the auction.

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If a reserve price has been set for the property and the property is passed in below that
reserve price, the vendor will first negotiate with the highest bidder for the purchase of the
property.
• Statutory and agency documentation - Statutory documentation that is related to

the auction are documents that are required due to legislative or regulatory
requirements while agency documentation is documented that is required by the
agency.
• Auction documentation is prepared in a manner consistent with seller

instructions; marketing plan used to manage the auction program, agency
practice, ethical standards and legislative requirements
It is essential to ensure that all auction documentation is prepared in a manner that is

consistent with the seller instructions, marketing plan and is able to be used to manage the
auction program, agency practice, ethical standards and legislative requirements.
Confirm seller instructions
It is essential that all seller instructions are confirmed and assessed in relation to the auction
and all auction documentations.
Prepare auction documentation that is compliant with seller instructions, marketing plan,
agency practice and legislative requirements
It is essential to ensure that all auction documentation is prepared in a manner that is

compliant with the seller instructions, marketing plan, agency practice and legislative
requirements and this can be achieved through:
 Assessing all necessary requirements

 Preparing documentation using these requirements
 Checking all documentation to ensure that requirements are met
Use auction documentation to manage the auction program
Once auction documentation has been created, it will be necessary to ensure that the
auction documentation is then used as a platform to manage the auction program. The
auction program is all of the procedures, requirements and steps that will be undertaken
throughout the auction process.

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Assisting professionals are followed up in a timely manner to ensure that auction
documentation is completed prior to auction date
It is essential that all assisting professionals are followed up in a timely manner to ensure
that action documentation is completed prior to the action date.
Assisting professionals
Assisting professionals may include:
 Conveyancers
 Solicitors
Follow up with assisting professionals in a timely manner to ensure that all auction
documentation is completed prior to the auction date
An auction marketing plan will generally run for four to six weeks prior to an auction, and it is
important that at least a week prior to the auction all required documentation has been
prepared. It will be necessary to ensure that effective follow up and liaison is conducted a
few weeks prior to the action to ensure that all documentation is likely to be completed on
time.
Assisting professionals may need to be followed up regarding these aspects of the

preparation of auction documentation:
Completion of auction documentation tasks
Preparation of auction documents
Preparedness for auction
If they have all information they require
If they are waiting on anything for completion
Expected dates of completion
Further, follow up requirements
It is essential that all follow up actions are conducted in a timely and professional manner in
order to obtain best outcomes in the preparation activities for the auction.

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Determine currency of contract to identify any changes to contract.
Currency of contract
Prior to auction it is necessary to ensure that the contract is current and to determine any
changes or amendments which might be needed prior to auction, this would be undertaken
the seller and any relevant stakeholders.
Confirm role of external parties.
Confirming the role of all parties
Prior to auction the roles and responsibilities of all parties should be confirmed including
external parties which might include; consultants, relevant agencies or authorities, legal
advisers, valuers, Finance officers, and other relevant parties. This is to ensure legal, ethical,
and compliant practices are undertaken and all times.
Interpret terms of contract and matters that affect the title.
Interpret terms of contract and matters that affect title
Interpreting the terms of contract and matters that affect title prior to the auction is important
because it assist with avoiding complaints, legal action, non-compliant, and/or other
disputes, and confirms a streamline and proper process.

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Identify and Document Property Details.
It is important to be informed about the property you will be auctioning. You will want to
identify the key features, benefits, and issues of the property. Document this information so
that you can share it with interested parties so they will have all the information they need to
plan a bid.
Identify key features of property from property report, marketing plan and materials.
Property information
You will need to have a thorough knowledge of the property prior to the auction. Taking the
time to go over the contracts with the sales agent or vendors to make certain that you
understand the property will help you be better prepared for the day of the auction. The
following are examples of the property information that you will need to be aware of:
 General and local market indicators and conditions

 Land characteristics
 Council zoning and allowable use
 Land titles and defects to title
 Specific environmental issues or features
 Specific requirements relating to the type of property
 Risks to the general public, clients, agency and self from auction activities
General and local market indicators and conditions
What is the condition of the market for the property that is up for auction? Are home values
increasing or decreasing overtime? Are homes being sold and purchased quickly in these
areas? You will want to understand the condition of the market for the properties so that you
can communicate it appropriately to bidders.
General and local market indicators include:

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 Home ownership affordability- this is a term that is used to describe the amount of
people that are able to get a mortgage in a specific area. This looks at the average
income of surrounding households compared to the average price of the homes. If
the average income of the population would not be able to qualify for a mortgage
than the homeownership affordability is low.
 Rental affordability- rental affordability is the same as home ownership affordability
but regarding rental properties.
 Home prices- home prices are not based on affordability, but rather they are based
on what an individual is likely to pay for a home. Home price indexes look at the
value of a home in a specific area over a period of time.
 Home sales- home sales are based on how quickly buyers are purchasing homes in
a specific area. These statistics are based on annual sales. When homes are being
purchased quickly there is more competition for each property which can then raise
the price.
 Housing starts- housing starts relates to new construction for building properties.
When there are more housing starts it is likely that housing prices will rise when
construction companies are investing more money in a particular area
 Housing supplies- housing supplies are the number of homes that are vacant that are
for sale. There are different indexes for new homes that are put on the market for the
first time versus older homes. If the housing supply goes down, it means that more
people are moving into that particular area which means that there will be more
competition for buying which can raise the price
 Mortgage originations- mortgage originations are the number of new mortgages that
are issued in a particular area this doesn't typically relate to the dollar amount of
mortgages just the number of mortgages in a particular area. When there are a high
number of mortgage origination it means that there is high home affordability and
reasonably homes prices.
These will all factor into the market value for the property. Which will then in turn determine
the value of the home in what you can expect to gain from the auction.
Land characteristics
Many residential properties will have very minimal land characteristics. However, there are
some properties that will have more land that will require explanation.

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Land characteristics can include:
Waterfront
Access
Inclement weather.
You may have a property that has a waterfront access. This can include rivers ponds or
lakes. Many of these properties will need to have a floodplain map to understand the
likelihood of flooding on that particular property. Access is another component when looking
at land properties. There are some instances where properties are unable to be accessed
because of heavy rain or other inclement weather such as wildfires or flooding.
Council zoning and allowable use
Council zoning and allowable use is related to how land is developed, where particular types
of businesses are able to operate, how tall buildings can be and whether locations are
appropriate for homes or businesses. Zoning allows cities to control different types of
buildings, businesses and developments in particular areas. Before a building permit is
issued, buildings have to fit into specific zoning designations. If you are performing an
auction for a parcel of land it is important to understand council zoning an allowable use for
that particular property.
Land titles and defects to title
A title is the document that states the ownership of a particular property. It is important to
know who holds the title of the land and property prior to the auction. A defective title or title
defect means that the title is not marketable. This usually means that another party is trying
to sell the land without actually holding ownership of the title. All of these issues will have to
be corrected prior to the auction to make certain that the sale is legal and ethical.
Specific environmental issues or features
Environmental issues will need to be addressed prior to the auction so that bidders are
aware of any problems surrounding the home. This can include any mould, groundwater,
use of lead- based paint, underground storage tanks, asbestos, air or water pollution, etc.

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The vendors and sales agents should have a thorough understanding of this information
prior to the auction.
Inspectors will also take note of any of these issues as well.
Specific requirements relating to the type of property
Potential buyers for the real estate property will need to be made aware of any requirements
that they will have to fulfil regarding that property. This can include homeowner association
fees, taxes, insurance requirements, etc.
Auction marketing plan is confirmed with seller in line with agency practice, ethical
standards and legislative requirements
Once the client has provided their approval for the agency to auction the property, it will be
necessary to ensure that an appropriate auction marketing plan is confirmed with the seller
in line with agency practice, ethical standards and legislative requirements.
Marketing activities
Marketing activities are all of the activities that will be used to introduce the property to the
market in order to promote the property to potential buyers in order to gain the best possible
outcome for the client.
Marketing activities may be selected based on:
 Price bracket
 Proven methods to target a specific demographic
 The type of property
 Meeting client needs
 Past experience of the agency
 Client budget
Confirm auction marketing plan with the seller
It will be necessary to ensure that a formal marketing plan is developed and confirmed by
the seller. An auction marketing plan would include the following information.
Advertising and promotional strategies
It will be necessary to develop a full advertising and promotional strategy which may include
a range of factors such as:
 Promotional materials

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 Types of advertisements to be used
 Timing and placement of advertisements and promotions
Legal and ethical requirements for property advertisements
It is essential that all real estate advertisements are transparent, fair and accurate; it is an
offence to include any information within an advertisement that is misleading or untrue. All
real estate detriments must comply with the requirements of the Australian consumer law or
agents and agencies may be liable for offences.
In some cases, when a property is listed in the private sale format the wording “offers over”
or accepting “offers over” a certain amount are applied.
It is considered an offence under the office of fair trading if the amount that is listed as what
will be accepted as offers over is not the minimum amount that a property owner will accept.
If a property is advertised for an amount that the agent knows the owner will not accept this
is called bait advertising.
The minimum selling price for a property must be listed on the Property Occupations Act
2014 appointment form. No market strategy information may be entered on the form as this
is also considered to be bait advertising. It is the responsibility of the agent to ensure that
the seller is aware of all property advertising rules and regulations.
If an agent is found to be guilty of bait advertising, there are penalties of up to $220,000 for
individual agents and up to $1.1 million for corporations.
Bait advertising is illegal as it is considered to be misleading and providing false information

regarding what a vendor will accept for the sale price of the property.
Diagram demonstrating an example of bait advertising and fair advertising:

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When advertising properties for lease, the same ethical rules apply as for property sales
advertising, and it is essential that all information is true and correct and that nothing
misleading is included, all costs to tenants must be included in the advertisement. This
includes extra factors such as pool or garden maintenance or water usage.
Communicating with sellers
It will be necessary to ensure that a communication strategy is developed in terms of how,

when and why the seller will be communicated with throughout the process.
Contact with prospective buyers
A range of methods for obtaining and managing contact with prospective buyers will need to
be developed.
Offers prior to auction submitted by prospective buyers
It will be necessary to determine a strategy that is related to any

offers that are submitted by prospective buyers prior to the
auction; this may involve decisions related to what type of offers
are likely to be accepted.
Outcomes of auction marketing
It will be necessary to ensure that desired outcomes to the auction

marketing plan are determined so that these may be able to be used as benchmarks for
success.
Post-listing conference
It will be necessary to conduct a post-listing conference with the seller in order to discuss the
next steps and the preparation for the auction.
Property descriptions
It will be necessary to write the property descriptions that will be used in advertising and for
the auction, in a manner that is accurate and portrays the properties best features.
Reasons for confirming auction marketing procedures and expenses
There are a number of reasons for confirming the auction marketing procedures and
expenses, and this may include:
 Client legislated agreement

 Agreement to price and budget
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 Ensuring client satisfaction
 Maintaining required legal and ethical needs
Relevant federal, and state or territory legislation and local government regulations
Anti-discrimination and equal employment opportunity
Within the each industry sector it is essential that all labour hire and employment terms meet
the requirements of the anti-discrimination and equal employment legislation in order to
ensure that all staff are treated equally and have the right to be employed in a safe and fair
environment. Relevant legislation includes:
 Anti-discrimination Act 1977

 Equal employment opportunity Act 1987
Rights of employees
The rights of employees under the EEO Law are to be treated in a fair and ethical manner
that is free from discrimination. Employees should not be bullied or treated differently due to
a range of different factors including:
 Gender
 Sexual preferences
 Religious beliefs
 Age
 Political beliefs
 Race
 Age
 physical or mental disability
 Marital status
 Family or carer’s Responsibilities
 Pregnancy
 National extraction
 Social origin
Responsibilities of employers to make merit-based employment decisions
It is the responsibility of all employers, to ensure that they make merit-based employment
decisions and are not swayed by their own personal opinion or discriminatory bias. This

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means that the most qualified person should be selected and their proven skills and
knowledge should best match the position.
Consumer protection, fair trading and trade practices
The consumer protection Act sets out a range of actions that must be undertaken in order to
ensure that consumer’s rights are protected through a range of requirements including:
 Safety
 Warranties
 Refunds
 Returns
 Information provision
It is essential that all refunds, terms and conditions of quotations and cancellation fees are:
 Compliant with the requirements of the consumer protection act

 Are fair and ethical
 Are transparent
 Are communicated in a clear and detailed manner to consumers
All organisations must ensure that are compliant with all of the requirements of the Fair
Trading Act 1989. Fair trading is related to:
 Competition standards
 Complaints handling
 Transparency
 Honesty
 Integrity
The Trade Practices Act 1974 has been put in place to ensure that all of the actions that take
place within the marketplace including the public sector are fair, safe and in line with all
relevant industry codes of practice.

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Employment and industrial relations
Each state and territory have its own industrial relations committee that is responsible for the
setting of employment condition guidelines and management of these factors across the
public sector. Employee relations may assist in matters of:
Conditions
Awards
Rights
Negotiations of conditions
Enforcing of rights
Financial services
There are many Acts and pieces of legislation that must be complied with in the financial
sector, and these may include:
 Australian Securities and Investments Commission Act 2001

 Corporations Act 2001
 Australian Securities and Investments Commission Regulations 2001
 Corporations Regulations 2001
 Banking Act 1959
 Privacy Act 1988
 Anti-discrimination Act 1991
OHS/WHS Legislation
In Australia, there is a raft of legislation that is based around the Model Work Health and
Safety Act that is designed to ensure that workers and the greater community are not injured
by business practices and that a safe work environment and practices are maintained at all
times. Each state and territory have its own regulatory body that is responsible for enforcing
and maintaining the health and safety laws in its jurisdiction. It is essential that all employee
responsibilities that are required in your state and your industry are accessed and
interpreted and included into daily work practices.

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OHS/WHS Industry Codes of Practice
Industry codes of practice are a set of guidelines that when followed will ensure that the
organisation is compliant with the relevant legislation in its jurisdiction. There are many
codes of practice that are active in Australia at the moment, these are not legal requirements
but are highly recommended as they are considered best practice and will ensure
compliance with the law. Legislation can be very confusing and written in complex legal
jargon where codes of practice provide simple strategies for ensuring a safe workplace can
be maintained.
OHS/WHS National Standards
National safety standards are agreed on standards and benchmarks that have been set as
an Australian Standard. It is essential that all national standards are known and applied to
during daily work activities. Standards may be related to safety equipment and standard
practices.
It is essential when planning and preparing for OHS/WHS policies and procedures to be to
be made directly in line with the requirements of relevant OHS/WHS legislation, codes of
practice and national standards. All employees should be trained in and made aware of all of
their responsibilities in relation to working in a manner that ensures a safe workplace.
It will be necessary to ensure that methods are put in place to ensure that all policies and
procedures are complied with throughout work activities.
There should be a system of observation, updated training, OHS/WHS safety meetings and
consultation to ensure that all OHS/WHS needs are covered at all times.
Privacy
It is essential that the client's privacy is maintained throughout all transactions and
interactions and this can be done through complying with the needs of the Privacy Act at all
times.
The Privacy Act 1988 (Privacy Act) is an Australian law that regulates the handling,
collection, use, storage, and disclosure of personal information about individuals. This
includes access to and correction of that information.
The Privacy Act includes:
 13 Australian Privacy Principles that apply to the handling of personal information by

most Australian Government agencies and private sector organisations

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 Credit reporting provisions that apply to the handling of credit-related personal
information that credit providers are permitted to disclose to credit reporting bodies
for inclusion on individuals’ credit reports
The Privacy Act also:
 Regulates the collection, storage, use, disclosure, security and disposal of

individuals' tax file numbers
 Permits the handling of health information for health and medical research purposes
in certain circumstances, where researchers are unable to seek individuals' consent
 Allows the information commissioner to approve and register enforceable app codes
that have been developed by an app code developer, or developed by the
information commissioner directly
 Permits a small business operator, who would
otherwise not be subject to the Australian
privacy principles (apps) and any relevant
privacy code, to opt-in to being covered by the
apps and any relevant app code
 Allows for privacy regulations to be made
Property sales and auctions
There is a range of acts that apply to property sales and auctions and these include:
Australian Capital Territory
Agents Act 2003 (ACT) Residential Tenancies Act 1997
Northern Territory
Agents Licensing Act (NT),
Agents Licensing Regulations (NT)
Auctioneers Act (NT)
South Australia
Land Agents Act 1994 (SA)
Land Agents Regulations 2010 (SA)
Land and Business (Sale and Conveyancing) Act 1994

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Land and Business (Sale and Conveyancing) Regulations 2010
Tasmania
Property Agents & Land Transactions Act 2005 (TAS) Property Agents & Land Transactions
Regulations 2006 (TAS)
Victoria
Australian Consumer Law & Fair Trading Act 2012 Estate Agents Act 1980 (and
Regulations) Residential Tenancies Act 1997 (and Regulations) Retail Leases Act 2003
(and Regulations) Sale of Land Act 1962 (and Regulations)
Victorian Civil & Administrative Tribunal Act 1998 (and Regulations/Practice Notes)
Western Australia
Real Estate and Business Agents Act 1978 (WA)
Code of Conduct for Agents and Sales Representative 2011 (WA) Auction Sales 1973 (WA)
Residential Tenancies Act 1987 (WA)
New South Wales Property, Stock and Business Agents Act 2002 (NSW)
Property, Stock and Business Regulation 2014 (NSW)
Residential Tenancies Act 2010
Queensland Property Occupations Act 2014 (QLD)
Agents Financial Administration Act 2014 (QLD)
Queensland Civil and Administration Tribunal Act 2009 (QLD)
Auction rules and prescribed auction information in state or territory of operation
Although legislation relating to auction is different in Australian states and territories, there
are some laws that applicable Australia wide. The following are rules that apply to all
auctions throughout Australia:
 Auction sales are unconditional. In other words, you have no right to make the
contract subject to any further conditions.
 There is no cooling-off period. This means that if you’re the highest bidder when the
hammer goes down, you will be required to go through with the purchase.
 If the vendor makes a bid, this must be announced to other bidders.

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 As soon as the bidding level passes the vendor’s reserve price, the property is on the
market and will be sold when the hammer falls.
 If bidding doesn’t reach the vendor’s reserve price, the highest bidder has the first
right to negotiate with the vendor.
 Contracts are signed and a deposit is paid immediately after the auction is
completed.
Penalties for breach of auction legislation
You will need to consider the penalties for the breach in the auction legislation. These can
include:
Caution or reprimand
Directive to take particular action to rectify a situation
Monetary penalty
Licence condition, suspension or cancellation.
Auction marketing plan, including inspections, open houses and relevant security
arrangements, is implemented in line with agency practice, ethical standards and
It will be necessary to ensure that the auction marketing plan, including inspections, open
houses and relevant security arrangement are implemented in line with agency practice,
ethical standards and legislative requirements.
It will be necessary to ensure that a range of planning actions is undertaken in order to

determine the agency, legal and ethical requirements for inspections, open houses and
relevant security arrangement and then to effectively plan and carry out the implementation.
Legal, agency and legislative requirements may include:
 OHS/WHS
 Privacy
 Ethical conduct standards

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 Key security
 Property Security
 Access requirements
The process of implementation
The process of implementation is the process of making plans and putting them into action.
The process of implementation involves the following preparation and planning components.
Develop action plans
It will be necessary to create a range of action plans that can be used for the implementation
of the marketing plan are established.
Action plans identify each of the goals that exist within the marketing plan and the individual
strategies that could be implemented in order to achieve that goal successfully.
Action plans then explain and set out in detail the action that needs to take place in order to
achieve these goals.
This includes all of the relevant information required to set out and achieve that goal
including:
 Financial plans
 Promotional strategies
 Resource requirements
 Risk management issues and strategies
 Specific actions, initiatives and tasks to be undertaken
 Staffing/responsibility requirements and arrangements
 Timelines
Determine resource requirements
It will be necessary to ensure that all of the required resources for the implementation of the
corrective actions are able to be identified and these may include:
 Financial
 Physical
 Human
 Technical

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Determine methods for reaching objectives
It will be necessary to ensure that a range of methods for reaching objectives are determined
and these must be reasonable, achievable and specific.
Set timelines
It will be necessary to ensure that all of the timelines for the implementation of corrective
actions are created, and these may include:
 Implementation
 Monitoring
 Corrective action review
Carry out all actions as planned
The most important aspect of the implementation process is to ensure that all activities are
carried out according to the plan.
Marketing is monitored on a regular basis to establish effectiveness of marketing plan
It will be necessary to ensure that marketing is monitored on a regular basis to ensure the
effectiveness of the marketing plans is able to be established.
The purpose of establishing the effectiveness of the marketing plans is to:
 Make reports to clients

 Determine the need for changes
 Plan further marketing activities
 Confirm marketing success
Monitoring the marketing plan for effectiveness
When monitoring the marketing plan for effectiveness, it will be necessary to conduct the
following actions:
Set measurable objectives
Throughout the implementation of the marketing plan, it will be necessary to ensure that a
range of measurable objectives or benchmarks is created.
For objectives to be considered measurable, it will be necessary to ensure that they are
written using the SMART acronym.
Meaning that they must be:

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 Specific
 Measurable
 Attainable
 Realistic
 Timely
Schedule timing for monitoring activities
It will be necessary to ensure that a schedule for when information will be collected on the
marketing plan in order to determine its success will be gathered.
Plan methods for evaluating the marketing plan
Depending on the type of marketing activities that have been used within the marketing plan
it will be necessary to ensure that effective monitoring activities are selected.
For example, factors that could be used to determine the success of the marketing plan
could include:
 Number of people at open house

 Suitability of people at open house
 Number of enquiries
 Number of people that have read the add or add reach statistics for media types
 Offers received
Enquiries from prospective buyers and other interested parties are addressed and
where required copies of relevant documentation are provided
It will be necessary to ensure that all enquiries from prospective buyers and other interested
parties are addressed and where required copies of relevant documentation are provided.
Prompt enquiry handling
To be prompt is to be quick and responsive; making clients wait for a response to their
enquiry is a great way of losing clients or starting the relationship of badly. All agencies will
have a set of policies and procedures related to the timing in which enquiries should be
responded to, and it is important that the quality of service is upheld to these standards at all
times.
The handling of enquiries includes all actions that need to be undertaken in order to respond
to the enquiry, and this may include:

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 Provision of information
 Answering questions
 Meeting requests for call backs
 Providing a solution
 Taking the next step in customer service for a particular client
Enquiries
Enquiries may be received through:
 Email
 Facsimile
 Inspections
 Office
 Open houses
 Referrals
 Telephone
 Website
It is important that all agency personnel are aware of the services and policies of the
particular agency that they work for so that they may be able to provide answers to these
enquiries as required.
Addressing enquiries related to auction marketing
When addressing enquiries that are related to auction marketing, it will be necessary to
ensure that:
 Suitable information is provided

 Relevant information is provided
 Enquiries are followed up
 If clients wish to receive offers prior to auction, these are encouraged
Provide documentation as required
In some cases, there is a range of documentation that may need to be provided to persons
making enquiries, and these may include:
 Auction information
 Auction registration
 Auction legislation information

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 Property information
 Information on making an offer
Offers from prospective buyers prior to auction are referred to owner in line with
It is important to ensure that all offers from prospective buyers prior to auction are referred to
the owner in line with agency practice and legislative requirements.
Offer to purchase property
An offer to purchase the property is a formal document that states the amount that the
potential buyer is willing to pay for the property and a range of conditions that apply to that
offer. When an offer is submitted, it will be communicated to the seller, and this will enable a
negotiation process to commence. In some cases, a potential buyer may make a full price
offer, and in this case, the seller will decide if they wish to accept the offer or not.
When a potential buyer makes an offer on a property, it will be necessary that they are
provided with a contract of sale so that they are able to formalise the offer and it will be
necessary to ensure that a range of reasonable conditions for the offer is discussed and
included.
Confirm and document details of the submitted offer
Once an offer has been submitted by the potential buyer, it will be necessary to ensure that
all of the details of the offer are confirmed and documented clearly onto a sales contract or
formal offer document template. Details of the submitted offer may include:
 Details of the potential buyer

 Details of the property
 Amount offered
 Conditions of the offer

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Submitting offers to sellers in line with ethical, legal and agency requirements
It is essential that the best interests of the seller in the arrangement are maintained at all
times, and therefore it is essential that the real estate agent ensures that they disclose any
information that may influence the seller’s decision to the seller when the offer is submitted.
It is essential to ensure that the privacy and confidentiality of the potential buyer are also
maintained effectively throughout the process of submitting the offer. It is unethical for the
real estate agent to fail to submit the offer to the seller and to provide any information to the
potential buyer without the consideration and consent of the seller.
Agency practice standards may require that offers are submitted to the seller within an
appropriate timeframe in order to provide the seller with an appropriate amount of time to
consider the offer, conduct any requests and choose to either accept the offer or make a
counter offer to the potential seller.
Submit the offer to the seller
It will be necessary to ensure that the offer is submitted to the seller in writing on appropriate
documentation in order to minimise the chance of any confusion, errors or
miscommunication. The seller will then decide if they will accept the offer or proceed to the
auction.
Regular reports on auction marketing are communicated to seller
It will be necessary to ensure that regular reports on the auction marketing are
communicated to the seller in order to:
 Maintain seller confidence in plan

 Identify the need for any changes
 Highlight marketing plan success
There is a range of contact and correspondence activities can be undertaken in order to

communicate the marketing plan outcomes to the seller effectively, and these may include:
 Provide the seller with regular updates regarding the success of the marketing
activities
 Ensure the seller remains informed about marketing actions and outcomes
 Regular marketing reports are provided to the seller
 Regular check ins are conducted
Marketing plan reports

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Marketing plan reports should include the following information:
 Marketing plan details

 Actions are taken so far
 Outcomes obtained
 Next actions
 The need for adjustments
The marketing plan is adjusted as required throughout the selling process
In some cases, it may be necessary to make a range of adjustments to the marketing plan in
order to ensure that seller confidence and marketing outcomes are able to be effectively
maintained.
Analyse features of location, facilities and aspect to ascertain selling features.
Descriptions of property to be auctioned are prepared for use before and during
auction
It will be necessary to ensure that effective and accurate sales descriptions for the property
are prepared in order to be used in marketing materials and promotional materials leading
up to the auction and during the auction.
Prepare accurate and ethical property descriptions
It will be necessary to prepare accurate and ethical property descriptions that enhance the
positive features of the property but do not mislead buyers in any way.
Collect all required information
It will be necessary that the property details are collected from the buyer, previous listings
and also a property inspection.

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Well written property descriptions will contain a descriptive sales phrase and a description of
the key features of the property.
Describe key features of the property
It will be necessary to ensure that the key features of the property are accurately described,
and this will include important and appealing features such as:
 Number of bedrooms
 Bedroom sizes and types
 Number of bathrooms and en suites
 Parking
 Garden and outside area
 Furnished or unfurnishes
 Heating
 Air-conditioning
 Location
 Style
 Overall property type
 Property size inside
 Property size outside
 Layout
 Original design features
 Wardrobes
 School catchment
 Security features
 Pool
Determine features of location, facilities, and other aspects to determine selling

features
The location, available facilities, and other aspects which might include views, transport,
location of schools, may all have an impact on the potential selling price of the property,
information about this can be gained by:
 Accessing information already in the real estate agency records

 Obtaining planning records or other information from Council
 Internet research
 Physical review and inspection
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 Reviews and/or news items relating to the local area
Prepare descriptive sales phrase
The descriptive sales phrase is a paraphrasing or statement about the property overall; this
is designed to entice and inform potential buyers and aid them in making the decision to
conduct further investigations.
Sample exert from a sales phrase:
Discover the epitome of resort style living with this property of exquisite distinction. Set out
over a sprawling 2703m2 block and enjoying an impressive 70m water frontage, this
architecturally designed, northeast facing 5-bedroom, 7-bathroom masterpiece blends
unrestrained elegance with easy living. Perfectly positioned in a dress circle location and
boasting flawless marble and bespoke timber finishes throughout, this residence sets the
standard in luxury living…
It is important to draw the potential buyer in and enable them to see the magic and wonder
of the property without being misleading. It is common to use phrases such as cosy instead
of small and quirky instead of poor layout in order to fairly describe aspects in a positive
light.
Descriptions should be clear and exciting and encourage the buyer to see the property for its
best features. Property sales are often aimed at the selling of a lifestyle idea and not just the
property itself.
Identify matters impacting on property for disclosure purposes.
What needs to be disclosed?
Disclosure requires that relevant information which could potentially impact on the sale price
and condition of the property needs to be disclosed, and this might include not be limited to:
 Damage or defects to the property

 The presence of substances such as asbestos
 Any structure on the property that does not have council approval
 Relevant building approvals
 Encumbrances
 Covenants
 Easements
 Current tenancy or other agreements

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 Environmental protection orders
 Any information including historical which might affect the sale of the property
Confirm Vendor Expectations

When confirming vendor expectations you would need to:
 Liaise with sales agent or vendor to confirm the auction process.

 Confirm the vendor’s price expectations.
 Analyse market indicator data to identify likely interest levels and expected price
range and compare to vendor expectations.
 Identify and evaluate details of expressions of interest or offers made pre-auction.
Liaise with sales agent or vendor to confirm auction process.
Confirm auction process:
 Stating rules and conditions of auction according to state or territory legislation

 Calling for bids
 Confirming or renegotiating reserve with vendor as appropriate
 Describing property benefits
 Identifying salient features of contract
 Knocking down or passing in property as appropriate
 Using vendor bidding as appropriate according to state or territory legislation
Stating rules and conditions of auction according to state or territory legislation
Legislation regarding auctions varying from state to state throughout Australia. You will need
to be aware of the particular laws that govern your state.
The following are examples of legislation:

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 Auction sales are unconditional. The contract cannot be made subject to any further
conditions.
 There is no cooling-off period. If a bidder has the highest bid when the hammer goes
down, that person will be required to complete the purchase.
 If the vendor makes a bid it has to be announced to other bidders.
 Once the bidding level passes the vendor’s reserve price, the property is on the
 market and is sold at the conclusion of the auction
 If bidding does not reach the reserve price, the highest bidder is the first one who is
able to negotiate with the vendor.
 Contracts are signed and a deposit is paid immediately at the conclusion of the
auction.
Each state will have their own specific rules and regulations. These include:
New South Wales
 Bidders have to be registered

 Bidders must be given a copy of the bidder’s guide
 The agent must display the following information as part of the auction advice and
rules:
o The highest bidder is the buyer
o Only one vendor’s bid can be made by the auctioneer
o Any bids that are not in the interest of the seller can be denied by the auctioneer
o Late bids are not accepted
Victoria
 A seller is not required to disclose their reserve price

 Auctioneers can place any amount of vendor bids
 Offers are that accepted within three days before the auction do not have a cooling
off period
 Bidders are not required to register
 Auctioneers are not required to have an auction licence
Queensland
 Price guides to buyers are prohibited

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 Reserve prices are required in writing before the auction
 If a reserve price is not established the house will be sold to the highest bidder
 Bidders must be registered prior to auction
 Auctioneers may make multiple vendor bids up to the reserve price and not beyond
 Private sales within two days of the auction by a registered bidder has no cooling off
period

South Australia
 Reserve prices must be set before the day of the auction

 Auctioneers must be registered in order to conduct an auction
 Bidders must be registered
 All bidders must be provided with the following:
The Bidders Guide
The Collusive Practices Statement
The Buyers Information Notice
Western Australia
 Bidders are not required to register

 Auctioneers are only allowed ten vendor bids
Northern Territory
 Auctioneers must be registered to conduct an auction

 There is no cooling off period on any offers before the auction
 There is no limit to the vendor bids
ACT
 Bidders must be registered

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 Only one vendor bid is allowed
Anti-money laundering
Money laundering is the action of purchasing real estate in order to cover up illegal funds. It
is a common practice to purchase real estate to cover up these funds. Money laundering can
be conducted through the following:
 Buying real estate using cash

 Disguising the beneficial ownership of real estate
 Relative stability and reliability of real estate investment
 Renovating and improving real estate, thereby increasing the value.
Anti-money laundering is regulated by the Anti-Money Laundering and Counter-Terrorism

Financing Act 2006 (AML/CTF Act). Because of how much money is typically used in the
purchase of real estate, these transactions typically involve a financial institution that will
most likely have to report all transactions that are then regulated by the AML/CTF Act.
Consumer protection, fair trading and trade practices
The consumer protection act is put in place to protect consumers during a purchase. These
actions are put in place through the following:
 Safety
 Warrantees
 Refunds
 Returns
It is essential that all refunds, terms and conditions of quotations and cancellation fees are:
 Compliant with the requirements of the consumer protection act

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 Ethical and fair
 Transparent
 Communicated in a clear and detailed way
The Fair-Trading Act 1989 was put in place to make certain that all businesses operating
within the marketplace are ethical and fair.
Fair trading is related to:
Competition standards
Complaints handling
Transparency
Honesty
Integrity
Calling for opening bids
As the auctioneer, you will then call for bidding, indicating the amount of any advances or
rises. In some states, bidder must register prior to the auction. This registration process
helps to ensure that each bidder has the necessary funds to purchase the property. The start
price of the bid is often determined by the vendor or sales agent. Make certain you know
what the start of the auction is and go from there.
The auctioneer will call out the current bid, and the advance rise that they are looking
for. This will be called out in a clear, loud voice. There are some auctions that require each
bid to go up a particular increment. This can be $5,000 or $10,000. In many cases this is
established with the vendor or sales agent prior to the start of the auction.
If a person at the auction requested that the last bidder be identified, as the auctioneer, you
will identify the bidder before taking any more bids.
Refusing bids
You have the right to refuse a bid at any time during the auction. This includes when the
hammer is falling. This can be because of suspected fake bids, any major disruptions that

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are being conducted by a certain bidder, or bidders are attempting to prevent other bidders
from bidding. You have a responsibility to maintain the flow of the auction. If individuals are
causing disruptions, you will need to make certain that this situation is taken care of swiftly
and professionally.
Confirming or renegotiating reserve with vendor as appropriate
Before you can submit the property for sale you will need to make certain that you
understand what the reserve price is. This is the minimum price that the property can sell for.
This price can be based off of the market value of the property or any liens that are on the
property at that current time. If this reserve price is not met during the auction, the sale will
not be completed. You will need to work with the sales agent or the vendor to determine
what the reserve price is. There may be instances where the seller or vendor is listing the
reserve price too high. In these cases, you will need to renegotiate the reserve price with the
seller and explain the reasons that the price is too high. This can be based on an
overestimation of the market value or the condition of the property. You will need to make
certain that your negotiation tactics are always ethical and professional in these instances. If
the reserve price is too high it can be difficult to reach this price and find a buyer that is
willing to pay that much for the property. When a reasonable reserve price is found, you can
expect for that price to be met and possibly go beyond the reserve price.
Describing property benefits
As an auctioneer it is your job to describe the benefits of the property before the sale. This
will give all of the bidders an understanding of the property and help move along the sale.
Property benefits can include how many bedrooms and bathrooms, square footage, schools,
zoning, location and other parts of the home that can be attractive to buyers. You can get a
list of the property benefits from the sales agent or vendors to help you complete this pitch.
Benefits of the property can include:
 School zones
 Home square footage
 Land size
 Number of bedrooms and bathrooms
 Key home features.
While auctioneers are not real estate agents, it is important to have the sales savvy in place
in order to complete the auction. You need to have a full understanding of the property and
the value that it has in order to get bidders excited about purchasing the property. Make sure

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that you use adjectives to describe the property in such a way that amplifies the property.
This will help move the auction along and get people excited about purchasing the property.
One thing to consider is many homes that go up for auction are homes that have fallen into
foreclosure. These homes may not be in optimal condition. Taking the time to paint a picture
for bidders that show value to the property even if it is not in pristine condition can help you
reach your sales agent or vendor goals for the sale.
Prior to the auction you will need to discuss with the sales agent and vendors any
information that they want you to disclose about the property at the start of the auction.
These individuals and agencies will have already done marketing for the property and will be
able to provide you with the key benefits of the property for you to communicate. These
conversations can be done through face-to-face conversations, email, text, or phone
conversations.
Identifying salient features of contract
As the auctioneer, you will also need to review the salient features of the contract of sale.
These include the following:
 The property address

 The title information
 Chattels
 Details of the vendors statement that includes zoning,
leases, outgoings and land measurements
 Terms and condition of the sale
Knocking down or passing in property as appropriate
The end of the auction can become intense as individual bidders fight to win the auction. It is
important to pay attention to all of the bids and remember the increments of the bid.
Continue the bidding process until a final bid has been made.
Knocking down the hammer will signify the end of the auction. The highest bidder will be
nominated and that person will confirm the bid. The bid is then called three times. If no other
bids are placed during this time, the knock down takes place. This signifies that the auction
is over and there are no more bids allowed.
The knocking down is the term that is used for the knocking down of the hammer. Use your
gavel to knock on the podium to signify the end of the auction. This will let all the bidders
know that there are to be no more bids and the auction has concluded.

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Once the hammer has fallen and the auction is over, the following will take place:
 The highest bidder will sign the contract of sale

 The seller signs the contract of sale
 The buyer will pay the deposit as part of the contract. There is no cooling off period.
A property is passed in at auction if the highest bid fails to meet the vendor's reserve price.
There are some cases that an auction has stalled and the reserve price has not been met. If
the vendor or sales agent wants to continue the auction, vendor bids can be placed to try to
keep the bids going. If this does not work, the auction should conclude and the property will
then be passed in. The highest bidder will have the opportunity to negotiate a price with the
seller.
In most cases, the highest bidder has the first right to buy the property at the vendor’s
reserve price once this price has been disclosed at the conclusion of the auction. The agent
will often bring the highest bidder into the property to discuss privately and see if the sale
can be negotiated. If the highest bidder declines to purchase the home at the reserve price,
then it is often opened up for all bidders to participate and make offers.
Using vendor bidding as appropriate according to legislative requirements
You will need to make sure that you use vendor bids legally in your auction. A vendor bid is
a bid that you as the auctioneer will make for the vendor in order to ensure that the price
meets the reserve price and to help move the auction along. Vendor bids are typically done
at the beginning or when an auction has stalled. There are a few states that only allow one
vendor bid and others that have no limit to the number of vendor bids that can be done. All
vendor bids must be made through the auctioneer and clearly identified as a vendor bid.
Vendor bids should not be used once the reserve price has been reached. Bidders need to
know that vendor bids will be used in the auction if necessary so they must be announced
prior to the start of the auction. You will need to check your local government restrictions in
order to meet legislative requirements.
Confirm vendor’s price expectations.
Reserve price is confirmed with seller in line with agency practice, ethical standards
and legislative requirements
It will be necessary to ensure that the reserve price is confirmed with the seller in line with
agency practice, ethical standards and legislative requirements.

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The setting of the reserve price with the seller is an important aspect of the action planning
process and must be conducted in a manner that abides by all legal requirements,
advertising requirements and honesty and ethical requirements. It is essential that potential
sellers are not misleading by incorrect materials in relation to the potential reserve and that
the seller is not misleading in any way when setting the reserve.
It is the legal and ethical duty of the real estate agent to ensure that all reserve prices and
procedures are conducted in a fair and ethical manner at all times.
Reserve price Definition
The reserve price or lowest price that the seller will accept must be provided in writing and
recorded in order to advise on:
Advertising requirements
Auctioneer instructions if applicable
Selling instructions
Sales contract terms
Purpose
The purpose of setting the reserve price is to provide an auctioneer with the information
required to know when the property is on the market and to advise on all term setting,
advertising and contractual terms.
Setting
The setting of the reserve price must be done in writing and must be advised and decided on
by the seller; however, the real estate agent can advise the seller based on:
 General disclosure requirements

 Sales data
 Own experience
 Market conditions
 Seller circumstances and needs

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 Property appraisals
Analyse market indicator data to identify likely interest levels and expected price
range and compare to vendor expectations.
There are many things to consider when setting the price for a piece of property. You will
want to look at market indicator data which will help you identify likely interest levels of the
property. It will also give you an expected price range for your property.
General and local market indicators and conditions
There are a few key factors when looking at the real estate market. These factors can help
you settle on a price of the property and help you understand your interested parties.
Key factors include but are not limited to:
 Demographics
 Economy
 Interest rates
Demographics
An analysis of demographics for the local area to be undertaken through research through
the Australian bureau of statistics, local council, other government and community
organisations, and the type of information you might seek include but not be limited to:
 Cultural information
 Typical age-group
 Socio-economic factors
 Preferences, such as schools, shops, other preferences
Cultural information
Cultural information contains facts and descriptions of behaviors and attitudes that are
typical of a particular culture. This information is a brief overview and does not completely
represent a culture in its entirety. This information though brief can still be helpful when
analyzing the demographics of an area.
Typical age-group
Knowing the typical age-group of an area can be helpful information. It lets you know what
types of communities you’re analyzing. If they are older you may have a higher population of

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retired adults who are on a fixed income. If they are middle-aged the area could be a bigger
family based community with needs for their children.
Socio-economic factors
Socio-economics is the relationship between the economy and social behaviours. Socio-
economic can affect the types of properties available in an area, the pricing of them and how
they are marketed. It is important to know the socio-economic climate of the area you are
working in and the demographic you are providing services for so you know how best to
meet their needs.
Preferences
It’s always important to know the preferences of the demographic you are wanting to target.
This will save you time and money in pursuing endeavors that mean nothing to your
prospective demographic.
Economy
The overall state of the economy plays an important role in the

pricing your property. Knowing the supply and demand for
certain types of property in the area is crucial to establishing
an appropriate price range. If your type of property is in high
demand than you can set a price that is higher but if the
market is oversaturated with this type of property you may
need to go in at a lower price point.
Interest Rates
Interest rates can greatly influence the price of a residential property. If interest rates are
high a lot of buyers may not be interested and will wait until they come down. The same can
be true of industrial properties as well. Knowing the current interest rates and how that
factors into the demographic of your buyers can help you establish a realistic and
reasonable price range for your property.
Identify and evaluate details of expressions of interest or offers made pre-auction.
Questions from interested parties are answered or referred to informed sources in

line with agency practice and ethical standards
It will be necessary to ensure that all questions from interested parties are answered or
referred to informed sources in line with agency practice and ethical standards.

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Answer questions from interested parties
In the event that interested parties may direct a question to an agency staff member, it is
important that these questions are answered fully and reasonably within an appropriate time
frame. It is important that all participants in the auction have all the required information
regarding the property and are aware of the legal and procedural requirements of the
auction.
There are some questions that may not be able to be answered such as:
What is the reserve?
And how much should I bid?
But all reasonable and legal questions should be either accurately answered of directed to
informed sources in order to ensure that agency practice and ethical standards are able to
be met.
Capacity of bidders, including impairment
You will need to look at the contract you have with the vendors or sales agent to determine if
there is a strict capacity for bidders. Your team will need to make sure that the number of
bidders does not go over capacity. When a bidder registers for the auction, they must sign
an agreement that states that they understand the rules of the auction and that they will be
responsible to purchase the property if they are the highest bidder at the fall of the hammer.
You will need to use your best judgment to determine if any of the bidders are impaired. This
can include drunk, mentally impaired because of drugs, etc. These individuals should not be
allowed to participate in the auction as they are not in a mental state to agree to these terms.
If you are in a situation where an individual seems impaired and should not be allowed to
bid, you as the auctioneer have the power to refuse their bids. Security can be used in
instances where individuals cause a disturbance. These situations should always be handled
ethically and respectfully in accordance with your organisation's policies and procedures.

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Direct to informed sources
It will be necessary to ensure that if the answers to questions do not know that the person
asking the question is directed to informed sources such as:
 Seller
 Auctioneer
 Lead agent
 External sources of information
 Legal representatives
 Financial institutions
Prepare Auction Day Strategy

Plan information for opening the auction adhering to legislative requirements
Auction day procedures are confirmed with seller in line with agency practice, ethical
standards and legislative requirements
It will be necessary to ensure that all auction day procedures are confirmed with the seller in
line with agency practice, ethical standards and legislative procedures. It is important that
the seller is supported throughout the auction process and is informed of their
responsibilities and actions that are required during the day.
Auction day procedures
Preparation for Auction day procedures should include:
 Advertising and marketing materials

 Auction documentation
 Channels of communication
 Managing the auction process
 Property inspection arrangements
 Security arrangements

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 Roles and responsibilities of agency staff
 Script to explain key features of the contract
 Contingencies for matters that may arise during the auction
 Order of sale if multiple properties are involved
 Risk assessment to ensure the safety of all stakeholders
There are several procedures that would be used on auction day. Auction day procedures
may include the following.
Advertising and marketing materials
It is customary that a range of advertising and marketing materials are made available at the
auction, and these include:
 Property profiles
 Property pictures
 Property descriptions
 Property brochures
 Signage
It will be necessary to ensure that all auction documentation is prepared, present and that
the required seller portions are able to be filled out prior to the completion of the auction are
completed.
Channels of communication
It will be necessary to ensure that the channels of communication are discussed prior to the
auction day and that the seller is aware of who will communicate with them and what they
are to do and say to prospective buyers and other people that may be present at the auction.
Managing the auction process
It will be necessary to ensure that the requirements for the management of the auction day
are planned, explained and discussed with the seller including:
 All actions that will take place before the auction

 All actions that will take place during the auction
 All actions that will take place in the auction
 Script to explain key features of the contract
 Contingencies for matters that may arise during the auction

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 Order of sale if multiple properties are involved
 Risk assessment to ensure the safety of all stakeholders
Property inspection arrangements
It will be necessary to ensure that a series of arrangements are made regarding the
requirements and timing for any property inspections that need to take place on the auction
day are made. It is customary for the property to be open for inspection for a period of time
before the auction starts and during the time that people participating in the auction will
register to bid.
Security arrangements
There may be a range of security arrangements that need to be made

including:
 Security personnel
 Strategies to maintain property security
 Key security
 Security of all documents and private information during the auction
Roles and responsibilities of agency staff
It will be necessary to ensure that the roles and responsibility of all agency staff during the
action will be made clear including:
 Auctioneer
 Personnel registering bidders
 Crowd controllers
 Persons observing the property inspection
 Persons supporting and liaising with the seller
Property is inspected by auctioneer prior to auction day according to agency practice

and legislative requirements
It is important to ensure that the property is inspected by the auctioneer prior to auction day
according to agency practice and legislative requirements.
Property is inspected by the auctioneer prior to the auction day
It will be necessary to ensure that the auctioneer has the opportunity to inspect the property
prior to the auction day so that:

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 They can confirm all necessary features and aspects of the property
 They are able to plan the proceedings
 A suitable location for the auction is able to be determined
 The auctioneer can familiarise them with the property
 The auctioneer will have the opportunity to collect any required information
Meeting agency and legislative requirements for the auctioneer property inspection
When ensuring that the auctioneer property inspection is conducted according to the agency
and legislative requirements it will be necessary to ensure that the following conditions are
met:
 Security requirements
 Access requirements
 Reasonable time frames
 Courtesy to tenants if applicable
 Auction rules and conditions
 Agency practice standards
 All other legislative requirements
Staff, equipment, promotional materials and other requirements for auction are
identified and arrangements are made to ensure their availability on auction day
When preparing to conduct an auction, it is essential that a range of preparation actions are
conducted to ensure that the auction will be properly organised in a manner that meets all
legal and ethical requirements for the conducting of auctions.
Identifying staff, equipment, promotional materials and other requirements for auction
When setting out to identify the staff, equipment, promotional materials and other
requirements for the auction, it will be necessary to consult:
 With seller
 With auctioneer
 With all staff that are involved
 Auction documentation
 Marketing plan
 Auction procedure plans
 Auction preparation checklists
 Contractual information
 Seller instructions

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Making arrangements to ensure that all requirements will be available on the auction day It
will be necessary to ensure that a range of arrangements are made to ensure that all
requirements will be available on the auction day and this can be achieved through:
Compiling all equipment
Booking or purchasing required items
Scheduling staff
Confirming all parties
Confirming that all resources are available
Implement auction day procedures
Auction area is prepared, including deployment of staff, and promotional materials

and equipment consistent with agency practice
It will be necessary to ensure that the auction area is prepared and this must include the
deployment of all staff and promotional materials in a manner that is consistent with agency
practice.
Auction area
The auction area is the space that the action will take place within and may include a range
of sub areas including:
 Podium
 Bidding registration area
 Promotional area
 Area for gathering
 Property area to be inspected
Prepare the auction area
It will be necessary to ensure that the auction area is set up in a manner that is conducive to
an effective auction and that complies with all professional presentation and conduct
standards of the agency and any relevant legal requirements. Preparation of the auction
area may include the following areas.

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It will be necessary to ensure that the auction documentation is prepared and displayed as
required according to the rules of a public auction.
Auction equipment
It will be necessary to ensure that all auction equipment is accounted for and placed in the
correct location to ensure that the auction is able to be conducted in an appropriate and
legally compliant manner. Auction equipment, including:
 Audio/visual equipment
 Bell
 Display boards
 Flags
 Gavel
 Lectern
 Signs
 Stickers
Distractions and hazards
It is essential that steps are taken in order to ensure that there will be no distractions during
the auction. It is illegal to interrupt an auction as this can alter the rules and conditions of the
auction. The auction should take place in a location that is quiet and free from major
distractions and unnecessary access to the public.
It will be necessary to ensure that the property area is inspected and the auction area is
confirmed to be free of any hazards. This can be achieved through the appropriate
application of risk management actions and inspections.
Risk Controls
Identifying risk is a critical part of any business. You want to evaluate anything that can go
wrong and address these issues prior to the auction. Look at each area of the auction and
determine worst case scenario.
This includes evaluating:
 Equipment being used

 Auction site
 Weather

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 Parking
 Personnel necessary
 Necessary and completed documentation
 Ensuring everything is conducted according to legislative requirements.
Risk inspection does not have to be a lengthy process, but it is important to conduct in order
to be completely prepared on the day of the auction.
Once the risks have been identified you will want to implement controls in order to prevent
those risks from happening, for example; using wet floor signs where appropriate so that no
one falls on slick surfaces. There are many ways to control the risk associated with your
business.
Property inspection
The property should be made neat, and agency personnel

should be placed in a manner that will allow for a safe and
secure inspection to take place for at least 30 minutes prior to
the commencement of the auction.
Marketing materials
It will be necessary to ensure that all required marketing materials including the auction sign
are placed on the property in an appropriate manner and staff may be appointed to hand
these materials out to those attending the auction.
Security
It may be necessary to ensure that the property is made secure through the placement of
agency personnel and an effective key management system.
Auction documentation is prominently displayed consistent with agency practice and

relevant legislation
It may be necessary to ensure that the property is made secure through the placement of
agency personnel and an effective key management system.

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Auction documentation to be displayed
It is essential that the auction conditions for the specific auction are printed in a clear and
easy to read manner in plain English and placed in a prominent position at the auction for at
least 30 minutes prior to the commencement of the auction.
It is essential that the conditions of the auction are displayed in the area that the auction is to
take place and that all participants have the opportunity to read the documentation prior to
the auction. Auction conditions may include:
 Start time
 Registration requirements
 Auction rules
 Auctioneer details
 Auction process
 Legal aspects of the auction
 Bidding process
 Bidding rules
 Identification requirements
 Vendor bids
 Reserve notification
 Auction terms and cooling off period
It is important for auctioneers and all participants to ensure that they comply with all of the
conditions and requirements throughout the undertaking of the auction.
Property inspection is facilitated on auction day prior to the commencement of the auction
It will be necessary to ensure that a suitable and appropriate property inspection is facilitated
on the auction day prior to the commencement of the auction.
Facilitate property inspection on auction day prior to the commencement of the

auction
The process of facilitation involves the actions that are required in order to enable a suitable
property inspection on the auction day prior to the commencement of the auction.
It is customary and recommended that the property will be open for inspection for at least 30
minutes prior to the commencement of the auction.

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When setting out to facilitate property inspection on auction day prior to the commencement
of the auction, it will be necessary to ensure that:
Signs are placed to advise people that the house is open for inspection
Auction signs are placed in appropriate locations
Personnel are placed in appropriate locations
Auction area preparations are completed prior to the scheduled

time of the property inspection
Property is prepared and open at the scheduled time
Appropriate actions are taken to ensure the security of the property

throughout the inspection
Promotional materials are prepared
It is recommended that all participants that are to be involved in the auction are encouraged
to view the property and that this opportunity is taken to maintain client excitement and to
gauge client reactions and interest in the property.
Auction day procedures are implemented in line with agency practice and legislative
requirements
It is essential that all auction day procedures are implemented in line with agency practice
and legislative requirements.
Auction process and auction day procedures
The auction process and auction day procedures include:
 Preparing for the auction

 Placing all staff members
 Displaying auction documentation, rules and conditions
 Assessing identification requirements of bidders
 Taking the details of all present at the auction

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 Registering bidders
 Assigning a number to each bidder
 Explaining procedures
 Explaining property features
 Explaining the terms of the auction
 Conducting the inspection
 Maintaining security
 Ensuring all auction procedures are conducted legally
Legislative requirements
There is a range of legislative requirements that may be

necessary for in line with agency practice and legislative
requirements, and these may include:
 Advertising of auction results

 Post-auction information
Complete follow-up procedures after auction sale
There are follow-up procedures that you need to be familiar with for after an auction sale.
Make sure that you are aware of the legislative requirements for your state or territory so
they can be followed accordingly.
Follow -up procedures are implemented if property is sold in line with agency
practice, ethical standards and legislative requirements
It will be necessary to ensure that appropriate follow up procedures are implemented if the
property is sold in line with agency practice, ethical standards and legislative requirements.
A property has sold at auction
The property is considered to be sold at auction when:
 Property has been announced as on the market (meaning that the reserve has been
met or that there is no reserve)
 A bid has been placed by a registered bidder
 The property has been declared as sold
 The gable has been brought down

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Follow-up procedures if property is sold, including:
 Buyer: In the event that a registered bidder has made a winning bid at the auction
and no other higher bids were made before the official close of the auction the
registered bidder has formally purchased the property. It will be necessary to ensure
that the buyer is:
• Informed that their legal bid has been accepted
• The contract of sale must be signed immediately
• The deposit must be paid
 Losing bidder: Losing bidders must be informed that the property has been sold and
this opportunity can be used to advise losing bidders of other properties that are
available to them.
 Other bidders: Other bidders that were present in the auction and registered but may
not have participated in the auction or may have stopped bidding prior to the end
stages of the auction can be approached as prospects for other properties,
 Seller: The seller must be present and must sign the contract of sale and formally
accept the winning bid.
Sales documentation is accurately completed in line with agency practice and

It is essential that all sales documentation is accurately completed in line with agency
practice and legislative requirements.
When ensuring that sales documentation is accurately completed in line with agency
practice and legislative requirements, it will be necessary to ensure that:
 All required documentation is identified

 All legislative requirements that pertain to documentation requirements are identified
 All documentation is filled out according to documentation, agency and legislative
requirements
Sales documentation
Contract for sale of real estate
The contract of sale in real estate is the formal contract of the intent of the purchaser and
vendor to make the sale and may be subject to a range of conditions that need to be filled
before the contract may be formally imposed.
A contract of sale should contain the following information:

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 Any conditions that apply to the sale such as finance or building inspections
 The details of the vendor and purchaser
 The property address
 Deposit information
 Sale price
 Date of settlement
 If the property will be vacant or if a lease applies
 Other personal property that may be included in the sale
Declaration of selling agent
The declaration of the selling agent must include any aspects regarding disclosure including:
 General disclosure requirements

 Disclosure of beneficial interest
Finance statement to purchaser
The financial statement is a position and profit and loss statement that applies to the sale of
a property if applicable and always applies to the sale of the business.
Receipts for purchase money paid
It will be necessary to ensure that all receipts for money paid are related to the sale is
included in the documentation for the sale.
Vendor's statement
A vendor’s statement which is also known as Section 32 is a

statutory document that makes a range of statements regarding
some factors about a property which cannot be ascertained from an
inspection or a title search.
A vendor’s statement must contain the following information:
 Mortgages: If there is any mortgage applicable to the property which gives the
mortgage property rights these must be disclosed.
 Covenants: Covenant statements regard any restrictions to how the property may be
used, such as dwelling limits.
 Easements: If there are any easements on the property which mean that other
people have the right to access the property, for example, a drain pipe.
 Zoning: What Council zone the property is within and what this means.

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 Outgoings: All costs that are applied to the property such as rates.
 A declaration: If the property is in an area that is prone to bush fires a statement must
be made.
Additional vendor's statement
The additional vendor’s statement is a part of section 32 and allows for a range of other
disclosure statements to be made.
The seller should disclose here any other information that may impact the sale decision such
as:
 Body corporate fees

 Body corporate deficit
 Fence ownership and obligations
 Electricity board type
 Any other important information
Follow -up procedures are implemented if property is passed in consistent with

agency practice, ethical standards and legislative requirements
It is essential to ensure that all follow-up procedures are implemented if the property is
passed in and these procedures must be conducted in a manner that is consistent with
agency practice, ethical standards and legislative requirements.
Passed in
The property will be passed in at auction if:
 The reserve was not met

 No bids were made when the property was declared to be on the market
 A vendor bid was the highest bid
 No bids were received
If an auction has passed in it means that the property has not sold at the auction and there
are a range of actions that can be taken.
Follow-up procedures if property is passed in
 Highest bidder:When a property is passed in at auction, the highest bidder will have
first opportunity to conduct negotiations in order to come to an agreement with the
seller if possible.

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 Other bidders:Other bidders will have the opportunity to negotiate if the highest
bidder and the seller cannot come to an agreement.
 Seller:It will be necessary to ensure that the seller is advised that the house has not
sold and what needs to be done next. It will be necessary for the agent to conduct
negotiations and to discuss other offers with the seller. The seller may accept
another offer, and the sale will be made, or the seller may take the property off the
market or put it to a private sale.
Alternative offers
Throughout the negotiation process, alternative offers are those that provide options other
than the initial offer that was made by the potential buyer who started the negotiation
process. Moving through the negotiation process a range of alternative offers may be
discussed with both the seller and the buyer. These include counter offers that are proposed
by the seller in response to offers from the buyer that have not been accepted.
Discussing alternative offers and assessing their viability
When discussing alternative offers with buyers and sellers, it is important that the viability of
these offers is assessed. Viability refers to the fact that the offer that has been made is:
 Reasonable
 Able to be achieved
 Suitable for buyer or seller requirements
When assessing offers for their viability, it will be necessary to discuss a range of factors
surrounding the offer such as:
 What is likely to be accepted?

 The capability of the buyer
 Restrictions that apply to the seller
 Motivation and property suitability for the buyer
 Other conditions or items that could be offered to help an offer in being accepted

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Collate information about the property.
When you collate information it means that you collect, arrange and assemble information in
a specific order. If you are printing information then you would assemble multiple sheets or
parts together to create a cohesive set. You want to make sure the information you are
sharing about the property is done in an efficient way that communicates clearly all the
aspects of the property. If the information is organized clearly then the reader should be able
to have their questions about the property answered accurately and quickly through the
printed information.
Accurate sales data is compiled that reflects auction outcomes for use in follow-up
procedures
It will be necessary to ensure that a range of accurate sales data is compiled that reflects the
auction outcomes that have been achieved at auction so that this information is able to be
used in follow-up procedures for the agency.
When compiling accurate sales data, it is important to ensure that all data is able to be
verified and cross checked.
Sales data, including:
Sales data is any information that may be collected in relation to the sale of properties.
Collection techniques
There is a range of techniques which may be used for the collection of sales data, and this
may include:
 Agency database
 Real estate sites
 Australian Bureau of statistics
 Statistical databases
 Property reviews
Reasons for collection
There is a range of reasons for the collection of sales data, and these may include:
 Conducting property appraisals

 Conducting property valuations
 Comparing properties
 Setting property price

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 Making promotional material
 Using data to support sales presentations or listing presentation
 Presenting data at an auction
Types of data
There is a range of different types of data that may be collected in relation to sales, and
these are:
 Price
 Median price
 Time on the market
 Method of sale
 Number of auctions passes in
 Sales at Auction
 Amount above reserve achieved at auction
 Demographical information on sellers and purchasers
Appropriate records of attendance or interest are compiled to expand agency contact

lists of potential clients identified through the auction process
On completion of the auction process no matter the outcome of the auction it is

recommended that a range of appropriate records of attendance or interest are compiled in
order to expand the agencies contact lists of potential clients that have been identified
through the auction process.
This is an important practice as it can aid the agency in future auction planning, marketing
and gaining further purchases for other properties that are listed with the agency.
Records of attendance and interest in auction
Collection techniques
It is essential that records of attendance and interest in the auction, are collected using:
 Online enquiry forms

 Registration at the Auction
 Consultation with people present at the Auction

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Reasons for collection
There is a range of reasons for the collection of records regarding the attendance and
interest in the auctions, and these may include:
 Planning future marketing

 Following up if auction is passed in
 Prospecting
Types of data
There is a range of different types of data that may be collected from auction attendees, and
these may include:
 Numbers
 Opinions
 How they found out about the property
 Active bidders
 Price range if possible
 Any other information
Publication of auction results and post-auction information is arranged in line with

In most cases, it will be agency practice to publish auction results and a range of post
auction information after the auction has closed. It is essential to ensure that all publications
regarding the auction results are completed in line with agency practice.
Publication of auction results and post-auction information
It is a legal requirement of all agencies to publish a range of records in relation to property

sales and auction results, and these must be submitted to the public record within the
required time frame.
The agency may be required to publish a range of information including:
 Auction success rates

 Sale prices
 Methods of sale used
 Vendor bid if auction was passed in using a vendor bid
 Passed in information
 Title information

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Ensuring that agency practice and legislative requirements are met during the
publication of data
It is essential that all agency practice requirements and legislative requirements are met
during the publication of data and post auction information, and this may include:
 Reporting requirements
 Privacy requirements
 Industry code of practice requirements
 Formats and inclusions of data to be published
 Locations that data will be published in
 Statistical information requirements
 Financial reporting requirements
Prepare script to explain key features of the contract and role of external agencies.
When preparing a script for the auction you will want to include key features from the
contract as well as acknowledging any external agencies that played a role in the auction.
When an auctioneer begins an auction he is entering a contract with the bidders. You, as the
auctioneer, are agreeing that you promise to sell the property to the highest bidder. When
you write the script to open the auction, you need to include information about this contract.
Any information that the bidders need to know before the auction needs to be communicated
so there are no discrepancies once the auction begins or ends. It is a good idea to have a
script that is already written so that you and the vendor can decide on the exact wording. It is
also a good way to make sure everything gets communicated. If there are any issues that
arise you can refer back to the script to support the information you communicated.
Develop contingency plans for matters that may arise during the auction.
You will want to have contingency plans for matters that may arise during the auction. There
are many issues that could come up during an auction and if you are not prepared for them it
could lead to an unsuccessful auction. It could also damage your reputation. You want to

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learn from your experiences but also make sure you plan for the issues that you know are
common in the auction world.
Issues that may arise during an auction include but are not limited too:
 Using appropriate bidding increments

 Maintaining bidding momentum
 Dealing with disruptive bidders
 Disputed bids
 Restarting bids
Using appropriate bidding increments
In most auctions, you will have fixed bidding increments. This means there are set amounts
that bidders are able to offer when they place their max bid. When a specific amount is
reached during the auction, the increment will change to the corresponding amount. This
increment is often $5,000 to $10,000. For example, in an auction with a bidding increment of
$5,000, an individual bid of $105,000 cannot be followed by a bid of $105,001. The next
acceptable bid would have to be $110,000 and then following increments of $5,000. This is
done to move the auction along that is appropriate for real estate.
If you place a bid that is not in an acceptable increment, we will let you know and tell you the
accepted amounts. For example, if you place a bid of 13 on a lot with increments of 5, you
will be informed that the bid was off increment and told what the acceptable increment is.
If a bid is placed that is not in an acceptable increment, you will need to let the individual
know and tell them the next accepted amount. For example, if a bid is placed with an
increment of $2,000 when the increment is $5,000, you will need to inform them that the bid
was off increment and is not accepted.
Bidding increments should be explained prior to the auction. There are still instances where
individuals do not follow these instructions. You have the right and the responsibility to
refuse the bids that are not inappropriate increments according to vendor or sales agent
requirements.
Maintaining bidding momentum
The speed of the auction is based on the auctioneer. If you set a quick paced auction there
is more emotion involved and quick buying decisions are more likely a “yes” than a “no”. This
means by setting a quick pace you will engage more bids. Which will then increase the
selling price and help you to reach a good final price at the conclusion of the auction.

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You want to set an increment and pace that makes sense for the property in order to engage
buyers. There are two ways in which you can allow auctions to slow no matter where the
bids are coming from. You can give bidders too much time to decide or you can use too
small of increments in your chant. You will need to make sure that in your auctioneer’s chant
that you
use a consistent rhythm. This helps engage your audience and help them to better function
and think clearly to make a bid.
You should also pay attention to who is placing bids. Learn to locate the serious buyers the
ones who are looking at the property the most, potentially ask the most question, and are
placing the most bids. After you have been an auctioneer for a period of time, you may be
able to feel where a bid is going to come from. Making deliberate eye contact with individuals
can often prompt a bid from someone who is wavering. Adjust your pace and cadence to suit
the mood and experience of the buyers.
Dealing with disruptive bidders
There are strict rules about how an auctioneer runs an auction and how people attending the
auction must behave. You will need to explain the rules of the auction do you try to prevent
any disruptive behavior during the auction.
Rules should be displayed:
 At least 30 minutes before an auction starts

 At the auction site.
Individuals that cause disruptions in an auction are subject to fines and legal action as it
applies to your area.
Before bidding starts, you will need to tell bidders:
 The auction will be directed according to the auction rules

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 That bids will not be accepted after the fall of the hammer and conclusion of the
auction
 Bidders will be identified if requested
 It is against the law to make a false bid, hinder another bidder, or in any way
intentionally disrupt an auction
 Substantial fines apply to anyone who engages in illegal auction conduct
 If there will be vendor or co-owner bids
Although it is illegal to disrupt an auction, bidders are allowed to ask reasonable number of
questions during the auction about the property, the contract, or the auction.
If individuals are being disruptive or performing illegal activity during the auction it is your
prerogative to have security escort them off the property.
Disputed bidding
As the auctioneer, you have the final authority on bids that are placed. This means that you
can dispute bids if they are placed in a way that is not according to the rules and regulations
of the auction. This can include bids that are not in appropriate increments, bids that are
placed by individuals who seem impaired, or bids that are placed by individuals who are
practicing unfair or unethical bidding practices. It is up to your discretion according to your
organisation's policies and procedures to dispute bids
Restarting the bidding
If the bidding becomes stalled, you can restart the bidding by decreasing the bidding
increment amount. If the bidding increment originally was $5000, you can change this to
$1000 or lower to help increase the bidding.
Prepare order of sale for multiple properties at an in-room auction.
An in-room auction is when the auction for a property is not conducted on location. In-room
auctions are getting more and more popular. They create a pleasant experience for both the
buyer and seller. Instead of standing outside in extreme weather conditions, everyone gets

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to assemble in a temperature controlled room. It is also a great way to sell multiple
properties at one time without having to travel from property to property.
There are ideas that suggest that the order of when a property is presented at an in-room
auction can affect the price but there is no evidence to support this. There may be buyers
who are there for multiple properties. They may want to buy multiple or could buy any of the
similar properties being sold. In this case, the end price is not really affected.
You will want to prepare the sale order of the multiple properties. This can be done with the
vendor to decide which properties to sell first. It may be beneficial to sell the ones with the
highest interest level last so that all the interest bidders also hear about the other properties
available in case they may want to bid on those as well. There really is no right or wrong way
to prepare an order for these sales. As long as you and vendor are in agreement and a plan
is put into place that will best serve the needs of both parties.
Required Knowledge
Prepare for auction and complete sale
Negotiation techniques
Negotiation techniques are a range of methods, practices and skills which can be applied to
the practice of negotiation in order to achieve mutually beneficial outcomes for all parties to
the negotiation.
Negotiation techniques may include:
Analytical skills
Listening techniques
Non-verbal communication skills
Personal attributes
Presentation techniques
Questioning techniques
Speaking skills

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Negotiation
Negotiation is the process of conducting a collaborative discussion that is aimed at ensuring

that the needs of both parties are able to be addressed. In order for negotiations to be
considered successful, they must be conducted in a manner that seeks to ensure that all
parties will be satisfied with the decided outcomes.
Negotiation procedures
The following procedures can be used in negotiating service provision options for customers:
 Prepare for the negotiation: preparation may include determining the outcomes that
you would like to achieve with the customer
 Open the negotiation: When the negotiation opens, it will be necessary to ensure that
you put your case forward and then provide the customer with the opportunity to put
their case forward as well.
 Argue: It will be necessary to provide a range of supports for the options that you
want to achieve and expose any factors of the customer's argument that may not be
possible.
 Explore: Come up with a range of possibilities and options with the customer.
 Signal: Communicate to the customer that you would like to work with them to
achieve mutually beneficial agreements.
 Package: Make appropriate trades to ensure that both parties needs are fairly and
appropriately met.
 Close: Come to a final agreement with the customer.
 Sustain: Follow-up on agreements and take actions to make them happen
Confirm all solutions agreed upon with each party
It will be necessary to ensure that all solutions that have been agreed upon throughout the
negotiation and evaluation process will be formally confirmed and clarified with each party.
It is important to make sure that all confirmations are provided in writing to the customer and
all departments within the organisation that require the information.
Risks and risk management strategies
A risk is any actions that may result in loss or negative impacts to the organisation or an
individual and risk management strategies are the planned actions that are undertaken in
order to reduce or remove the risk.

70
There is a range of risks and risk management strategies that apply to the auction of the
property, and these may include:
Rish Risk Management Strategy
Auction compliance Take all appropriate steps, be sure to use a

risks licensed auctioneer
Auction passed in Set a reasonable price and conduct a throughout

marketing campaign, delay auction if required
Client instructions not Double check all instructions and ensure that they
followed are suitably followed up
Client instructions not Ensure that all general disclosure requirements are
followed met
Disclosure risks Seek legal advice
Legal risks Monitor and adjust plan as required
Marketing plan not Seek specialist advice and follow all agency
successful protocols at all times
Non-compliance with Plan, monitor and enable settlement throughout

requirements the entire process
Settlement risks Use only justifiable and reliable information

71
Summary
Now that you have completed this unit, you should have the skills and knowledge to prepare
for an auction and complete the sale of property.
If you have any questions about this resource, please ask your trainer. They will be only too
happy to assist you when required.

72
Commonly Used Real Estate Terms
What do real estate terms mean in plain English? Agency Agreement.
An agency agreement is a contract between a vendor and an agent. It sets out the terms
and conditions on which a vendor appoints the agent, what the agent will do for the vendor,
and what a vendor will pay an agent. Agent A licensed person or agency employed to
facilitate the sale of the property on behalf of the seller.
Appraisal
An opinion of your property's salability and estimated market value based on current market
conditions and your property's characteristics. This is not the same as a legal valuation by a
registered Valuer.
Auction
A three to five week program using a high-profile marketing campaign. The sale of the
property goes to the highest bidder or is passed in if your Reserve price is not met.
Breach of Contract
Not fulfilling any terms of the contract.
Bridging Finance
A short-term loan, usually at a higher rate of interest, which helps people to cover the
purchase of a property while waiting for theirs to sell. The security is usually over both
properties.
Building Regulations
These are designed to uphold the standards of public safety, health and construction. These
are put in place by local authorities (usually councils) to control the quality of buildings
BEO
Buyer Enquiries Over $

73
Caravan
The agent that is marketing the property takes the rest of the salespeople in the office
through the property so that they can familiarise themselves with the property and market it
to their buyers.
Caveat
A document lodged with the titles office, by any person with a legal interest in a property, to
ensure the property is not sold without their knowledge
Common Property
Areas on a title which have joint ownership with another property, often common with cross-
leased, strata-title and unit-title properties.
Conditional Contract
A contract that is agreed to by the Seller and the Buyer, but where one or more conditions
need to be met, usually within a specified time period, by either or both parties, e.g. it is
subject to the purchaser raising finance within a few days or subject to the lawyers consent
of the title etc.
Contract of Sale
A written document that sets out the terms and conditions for the purchase or sale of land,
and all improvements [buildings etc.] thereon. Also commonly known as a 'Sale and
Purchase Agreement'.
Capital Gain
The monetary gain obtained when you sell a property for more than you paid for it.
Certificate of Title
A document which details the ownership of a property along with property dimensions and
other details.
Chattels
Any removable items that are sold with a home, light fittings, curtains, dishwasher etc.
CMA
Comparable Market Analysis is the price comparison of your home with others that are
currently for sale and those that are similar in size and location that have sold.

74
Commission
The fee payable to a real estate agent for selling a property.
Conveyancing
The legal process of transferring the ownership of a property and money, making sure that
everything is legally correct, as the property transfers from one owner to another. This is
usually done by your solicitor.
C.T.
Certificate of title. Document that shows the legal ownership of a property.
Covenants
Rules and regulations governing the use of property.
Deposit
A defined percentage of the purchase price paid by the purchaser which is held in trust as
confirmation of intention to buy.
Escape Clause
This allows the Vendors to issue notice to a conditional purchaser that unless that purchaser
confirms the sale as unconditional within a short stipulated time, then the vendor can
proceed with another offer from another party.
Exclusive Listing/Agency
Only the agency appointed has the rights to sell the property.
Easement
A right held by someone to use land belonging to someone else for a specific purpose.
Mains, drains, and water pipes are usually covered by an easement.
Encumbrance
An easement, mortgage, or other liability on a propertywhich impedes its use or transfer.
Equity
The value you hold in your home. The total value less any mortgage or other liabilities on a
property.

75
F.S.B.N.
For Sale By Negotiation. This is a non price marketing strategy where often a price bracket
is used to advertise the property.
General Listing
A listing that is open for any agent in any company to work.
Interest-only Loans
A loan on which interest only is paid periodically and the principal is paid at the end of the
term.
Investment
The purchase of any asset, such as real estate, with the ultimate goal of producing capital
gain on the resale of the asset.
Joint Tenants
Joint tenancy is the equal holding of property by two or more persons.
Land Transfer Office
Government department where all property records are held and any changes are
registered. It is a public record and therefore you can go there and look at any title to a
property.
Lease
A document granting possession of a property for a stated period without transferring

ownership. The lease document specifies the terms and conditions of occupancy by the
tenant, including period of occupancy, rent payable etc.
Liabilities
The outstanding debts you owe.
LIM
Land Information Memorandum - a report which can be requested from your local authority
which provides information regarding the property - things like consents, rates owing,
drainage and building plans.

76
Listing Authority
(Agency Agreement) A contract between the owner of the home and the Real Estate
Company selling the house. It is normally for a set number of days and sets out the
commission rate and any additional costs. This state's whether it's an exclusive, general,
tender or auction listing. Now called an Agency Agreement.
Loan Period
The number of years that a home loan is for.
Maturity Date
The last day of the term of the home loan agreement. The home loan must then be paid in
full or the home loan agreement renewed.
Mortgage
The security over property given to the lender for the repayment of the loan. The lender
(Mortgagee) has the right to take the property if the borrower (Mortgagor) fails to repay the
loan.
Mortgagee
One who lends the money for the property.
Mortgagor
One who borrows the money to purchase property.
Negative Gearing
Where your mortgage repayments exceed the income received from a rental property.
Offer to Purchase
A formal offer for a specified price for a specified property, normally made on a sale and
purchase agreement.
Passed In
A property is passed in at auction if the highest bid fails to meet the vendor's reserve price

77
Plan
This shows the house design, elevation of the house, number and size of rooms, kitchen,
bathroom and laundry layout, position of the house on the land.
Possession Date
(Settlement Date) -The day the purchasers take occupancy of the home, normally when the
ownership of the property transfers and the balance of the purchase price is paid to the
vendor.
Principal
The actual amount of money that has been borrowed to buy a property.
Private Sale
The seller does not engage an estate agent but acts on his own behalf, dealing directly with
the buyer and in preparation of the agreement.
Private Treaty Sale
Sale of a property via an agent through private negotiation and contract.
POA
Price On Application
PBN
Price By Negotiation
Purchaser
The eventual buyer of the home.
REAA 2008
Real Estate Agents Act 2008. The laws governing the real estate industry
Real Property
Land, with or without improvements.
Reserve Price
The amount below which a home owner will not sell on the day of Auction.

78
Right of Way
Right of access across a property
Strata Title/Unit Title
Most commonly used for flats and units, this title gives you ownership of a small piece of a
larger property including "air space". You have sole right to a particular unit and can lease,
sell or dispose of your unit as you desire. You also have an undivided share of the common
land and become a member of the Body Corporate which controls maintenance and has
stipulated rules governing occupation.
Stratum Title
This title gives you legal ownership over a piece of property and also a share in the common
land of the area of flats or units. It does not include "air space"
Subject to Finance
A condition inserted into a contract, for the benefit of the purchaser. This makes the contract
subject to the purchaser's confirming that they have raised finance within a certain amount of
time.
Survey
Confirmation of the property boundaries and improvements.
Subdivision/development
Special Project that involves multiple sections/properties that are for sale.
Sale and Purchase Agreement
(Contract of Sale) - The contract between the buyer and the purchaser.
Security
Property offered as backing for a loan. In the case of a home loan, the property itself usually
acts as security.
Semi-detached
Two buildings joined by a common wall.

79
Settlement
Completion of a sale when the balance of the contract price is paid to the vendor and the
buyer is legally entitled to take possession of the property.
Sole Agency
Only the agency appointed has the rights to sell the property.
Tender
A tender is a program similar to an Auction, with an increased level of marketing. A tender

involves potential purchasers placing confidential bids for a property. The bids may or may
not include conditions, and any bid can be accepted by the vendor.
Title Search
The process of examining the land title to ensure the vendor has the right to sell and
therefore transfer ownership. It details the names of the owners and other information about
the property such as encumbrances or caveats on the title.
Unconditional Contract
A contract for the sale of a specific property that the vendor and purchaser has agreed upon
that has no conditions, or if any conditions they have been confirmed as being met, and
therefore constitutes a sale.
Vacant Possession
When ownership is transferred from the sale of a property there will be no tenants living in
the property, or leases giving someone else use of the property.
Valuation
Assessment of the value of a property given in a written report, by a registered Valuer. Real
Estate Agent are not authorized to give valuations.
Vendor
The person who owns the property for sale, i.e. the seller.
Zoning
Control of the use of land exercised by local authorities or the responsible planning authority.

80
References
https://venturelegalkc.com/2017/08/15/how-to-review-a-
contract/#:~:text=Step%201%3A%20Make%20sure%20you,(see%20the%20checklist%20be
low).
https://www.investopedia.com/terms/r/reserve-price.asp
https://www.auction.com/lp/learn-more/bank-owned/pre-auction/
https://www.realestateview.com.au/advice/selling/the-ins-and-outs-of-setting-a-reserve-
price/
https://www.investopedia.com/articles/mortages-real-estate/11/factors-affecting-real-estate-
market.asp
http://www.fao.org/3/x5310e/x5310e03.htm
https://www.legalmatch.com/law-library/article/defective-titles-or-title-
defects.html#:~:text=A%20defective%20title%2C%20or%20a,actually%20owned%20by%20
so meone%20else.
https://www.discover.com/home-loans/articles/6-things-know-property-
titles/#:~:text=A%20title%20is%20the%20legal,heard%20much%20about%20this%20proces
s.
https://www.auctionsneapolitan.com/Auction-Terms-
Glossary.html#:~:text=Knocked%20Down%20%2D%20a%20traditional%20auction,was%20
kno cked%20down%20at%20%2412%2C000.%22
https://en.wiktionary.org/wiki/vendor_bid#:~:text=(finance)%20A%20type%20of%20bid,the%
20property%20is%20passed%20in.
https://web.printingcenterusa.com/blog/what-does-collate-
mean#:~:text=The%20meaning%20of%20the%20word,%2C%20manuals%20%26%20collat
ed% 20color%20copies.
https://mikebrandlyauctioneer.wordpress.com/2009/11/21/does-bid-calling-form-contracts/
https://www.therealestateconversation.com.au/blog/justin-nickerson/does-room-auction-
order-impact-propertys-price/real-estate-blogs-queensland
https://chadwickrealestate.com.au/buying/benefits-room-property-auction/

81

Undertake Pre-Auction Processes

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Undertake Pre-Auction Processes

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Learner Guide

CPPREP4161 - Undertake pre-auction processes

About This Resource............................................................................................................. 4

About Assessment ................................................................................................................ 5

Review Contract Details ........................................................................................................ 6

Identify and Document Property Details. ............................................................................. 14

Confirm Vendor Expectations.............................................................................................. 36

Prepare Auction Day Strategy ............................................................................................. 48

Required Knowledge ........................................................................................................... 69

Commonly Used Real Estate Terms ................................................................................... 73

CPPREP4161 Undertake pre-auction processes (VIC)

This unit applies to auctioneers or people seeking to work as auctioneers.

CPPREP4161 Undertake pre-auction processes (VIC)

CPPREP4161 Undertake pre-auction processes (VIC)

You are going to be assessed for:

Your assessment may be conducted through a combination of the following methods:

CPPREP4161 Undertake pre-auction processes (VIC)

Review Contract Details

Auction legislation states that:

 All bids made during an auction are final

CPPREP4161 Undertake pre-auction processes (VIC)

 Reasonable information about auctions must be provided to the seller

The following would be documentation you need to access prior to option:

Client agreement to list auction the property with agency is confirmed

Obtain written confirmation

CPPREP4161 Undertake pre-auction processes (VIC)

It will be necessary to ensure that a communication

Neutrality in the auction process

CPPREP4161 Undertake pre-auction processes (VIC)

Auctioneer role, responsibilities and risks

Access, read and interpret contract documentation.

Purpose and content of auction documentation are explained to seller

Auction documentation may include:

 Authorities - There may be a range of authorities that need to be obtained in order

CPPREP4161 Undertake pre-auction processes (VIC)

Rules and conditions of the auction may include:

GENERAL RULES FOR THE CONDUCT OF PUBLIC AUCTIONS OF LAND

The auctioneer may refuse any bid.

CPPREP4161 Undertake pre-auction processes (VIC)

• Statutory and agency documentation - Statutory documentation that is related to

• Auction documentation is prepared in a manner consistent with seller

It is essential to ensure that all auction documentation is prepared in a manner that is

Confirm seller instructions

It is essential to ensure that all auction documentation is prepared in a manner that is

 Assessing all necessary requirements

Use auction documentation to manage the auction program

CPPREP4161 Undertake pre-auction processes (VIC)

Assisting professionals may include:

Assisting professionals may need to be followed up regarding these aspects of the

Completion of auction documentation tasks

Preparation of auction documents

Preparedness for auction

If they have all information they require

If they are waiting on anything for completion

Expected dates of completion

Further, follow up requirements

CPPREP4161 Undertake pre-auction processes (VIC)

Confirm role of external parties.

Confirming the role of all parties

Interpret terms of contract and matters that affect the title.

Interpret terms of contract and matters that affect title

CPPREP4161 Undertake pre-auction processes (VIC)