Understanding the New “Sale of Land (Public Auctions) Regulations 2024”
The Victorian Government has recently introduced significant updates to the rules governing public auctions for the sale of land. As of 23 June 2024, the “Sale of Land (Public Auctions) Regulations 2024” came into effect, replacing the previous 2014 regulations. These changes aim to ensure greater transparency, fairness, and compliance in land auctions.
So, what does this mean for buyers, sellers, and auctioneers?
Key Changes and Highlights
Update Auction Rules
Under the new regulations, the auction process has been further standardised to protect both sellers and buyers. This includes clear rules for how auctions should be conducted and the obligations auctioneers must follow. For instance, auctioneers are required to announce the terms of the auction, including whether any vendor bids will be made and how they will be communicated.
Vendor bidding clarifications
One of the main updates in the 2024 regulations concerns vendor bidding. Depending on the number of co-owners of the land and whether they intend to bid, specific rules apply. The auctioneer is no longer allowed to make bids on behalf of a vendor who is a co-owner aiming to purchase the property from their co-owners. This ensures a more transparent process for all participants.
Penalties for misconduct
The new regulations introduce clearer penalties for both auctioneers and participants who fail to comply with the rules. For example, disruptions to auctions, false bidding, or misleading announcements can attract fines for up to 10 penalty units, currently valued at $197.59 per unit. This reflects the government’s commitment to maintaining integrity in the auction process.
Pre-auction transparency
At least 30 minutes before any public auction, the auctioneer must make available all relevant rules, conditions, and information regarding the sale. This is to ensure that bidders have ample time to review the terms of the auction, including any potential vendor bids.
Why These Changes Matter?
These updates are designed to ensure that land auctions are fair and that all parties involved have access to the necessary information. The introduction of stricter penalties and clearer rules for vendor bidding helps to prevent potential conflicts and ensures that bidders can compete on a level playing field.
Whether you’re planning to buy, sell, or facilitate a property auction, it’s important to understand these rules. By staying informed, you can ensure that you comply with the latest legal requirements and avoid penalties.
Need Further Advice?
Our team of experienced property lawyers is here to help you navigate the complexities of the updated regulations. Whether you’re a vendor, buyer, or auctioneer, we can provide tailored advice to ensure your next auction runs smoothly and within the bounds of the law.
For full details on the “Sale of Land (Public Auctions) Regulations 2024”, you can check the official regulation here:https://content.legislation.vic.gov.au/sites/default/files/2024-06/24-48sra001-authorised.pdf