Bid, Chattel, On The Market – Get the Low down on the Auction Terms

Bidding at Auction?

Bidding at an auction can be both exciting and intimidating to the uninitiated. This guide seeks to de-mystify the auction process and provide clarification on the roles and responsibilities of auctioneers and bidders.  Our team are available to assist so please contact us to answer any questions.Bid – The act of offering to purchase at a price in an auction – a verbal commitment or offer to purchase.

Chattel – An item of property other than freehold land, including tangible goods. Included chattels may be items that remain with the property that would ordinarily be presumed to be being removed prior to settlement eg: pool table, television etc. ‘On the market’ – A property is announced on the market and deemed to pass title to the highest bidder when either the reserve price is reached, the bidding ceases at or above the reserve price or the vendor reduces the asking price in order to meet the market’s value expectations and secure a sale.

Vendor Bid – A vendor is the owner of the property for sale and a bid is an offer on a piece of real estate. So a vendor bid can be made by the auctioneer on behalf of the vendor and is used to start the process if no one in the auction has raised their hand with an amount.

Unconditional Contract – After the seller has received the full deposit and all other conditions of the contract have been satisfied or met, the contract of sale will
become unconditional. Once this occurs, there is now a legally binding document in place and all parties, buyer and seller, will be legally bound by the contract.
At auction, a property is typically offered with no conditions meaning it is a fair playing field for all involved in bidding for the property. This can often mean that finance and any building or pest inspections must be organised prior to the auction date.

Conditional Interest – If you hear the auctioneer mention conditional interest, they are most likely referring to those buyers that are unable to purchase under auction conditions (cash / finance ready buyers who have completed all due diligence) but are keen to put their offer forward immediately after the auction if the property is passed in. The conditions they might wish to work with could include a subject to finance condition or subject to a building and pest inspection, etc.