Making an offer

Buying at auction in New South Wales

The NSW auction rules from registration to the fall of the hammer: vendor bids, the reserve, the deposit, cooling-off and what happens if a property is passed in, each cited to the NSW Government.

NSW auction rules at a glance

Cooling-off: None at auction, or on exchange the same day after the property is passed in (NSW Department of Customer Service (in collaboration with NSW Fair Trading), verified 12 Aug 2026).

Rules as at the date on each citation, from the NSW Government.

Registering to bid

To bid you must register with the vendor's agent, showing proof of identity (a card or document issued by a government or a financial institution), and you get a bidder's number to display when you bid. Registering does not oblige you to bid (NSW Government, verified 22 Oct 2026).

The contract and its conditions

The auctioneer must have the conditions of sale on display before and during the auction so you can read them (NSW Government, verified 22 Oct 2026).

The reserve price

The seller nominates a reserve price, which is usually not advertised or disclosed, and must give it to the auctioneer in writing before the auction starts (NSW Government, verified 22 Oct 2026).

Vendor (seller) bids

The auctioneer may make one bid only on behalf of the seller, and must announce it as a vendor bid (NSW Department of Customer Service (in collaboration with NSW Fair Trading), verified 12 Aug 2026).

Dummy bidding

Dummy bidding is illegal. A court can impose a penalty of up to $55,000 on an individual and up to $110,000 on a corporation (NSW Department of Customer Service (in collaboration with NSW Fair Trading), verified 12 Aug 2026).

When the hammer falls: signing and the deposit

No bids can be made after the fall of the hammer, and the highest bidder is legally obliged to sign and exchange contracts and pay the deposit on the spot, usually 10% of the price (NSW Government, verified 22 Oct 2026).

A buyer who can't complete the contract loses the deposit and may be liable for damages suffered by the seller (NSW Government, verified 22 Oct 2026).

Cooling-off

There is no cooling-off period at auction, or where contracts are exchanged on the same day as the auction after the property has been passed in (NSW Department of Customer Service (in collaboration with NSW Fair Trading), verified 12 Aug 2026).

If the property is passed in

If bids don't meet the reserve, the property may be passed in or withdrawn, and the highest bidder then generally has the first opportunity to negotiate with the seller (NSW Government, verified 22 Oct 2026).

For how auctions run everywhere, and every state side by side, see buying at auction in Australia. For cooling-off, the contract, the deposit and settlement on a private sale too, see buying a home in New South Wales.

Common questions

Is there a cooling-off period at auction in New South Wales?

There is no cooling-off period at auction, or where contracts are exchanged on the same day as the auction after the property has been passed in.

What do I sign and pay when I win an auction in New South Wales?

No bids can be made after the fall of the hammer, and the highest bidder is legally obliged to sign and exchange contracts and pay the deposit on the spot, usually 10% of the price.

How do vendor bids work in New South Wales?

The auctioneer may make one bid only on behalf of the seller, and must announce it as a vendor bid.

Practical checklist

Before an auction in New South Wales

• Finance approved for this property and your limit, not just pre-approval in principle
• Building and pest inspection, and strata records for a unit, done before the day
• Contract and vendor disclosure read by your conveyancer or solicitor, with any changes asked for in writing before the auction
• Your walk-away limit written down, and the bidding plan for whoever bids
• Proof of identity for registration, and a letter of authority if bidding for someone else or a company
• The deposit ready in a form the agent accepts, confirmed with the agent beforehand
• Arrive early to read the rules or conditions on display and hear the auctioneer's opening statements
• If you win: get a copy of the signed contract, tell your lender, and arrange insurance from the date your contract says

Questions for a professional

• Is there anything in this contract or the conditions of sale I should ask to change before the auction?
• What happens to my deposit if my finance falls through after I win?

Official resources

• NSW Government: buying property at an auction

Sources and methodology

• Buying property at an auction | NSW Government — NSW Government (retrieved 22 Oct 2026). Licence: CC BY 4.0
• Buying property at an auction — NSW Department of Customer Service (in collaboration with NSW Fair Trading) (retrieved 12 Aug 2026). Licence: NSW Government content, reproduced for research/citation purposes

Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.