The Australian Competition and Consumer Commission has allowed the Real Estate Institute of Western Australia to make a small change to the authorisation* it was granted on 18 April 2007.
The variation allows REIWA to amend its Auction Code of Conduct, allowing REIWA members to place bids for sellers in court-ordered auctions. Courts such as the Family Court have the power to order that a property (for example, a disputed house in a divorce settlement) be auctioned without reserve. When these orders are made, the party ordered to sell the house may bid in the auction in order to retain ownership.
The REIWA Auction Code of Conduct prohibits REIWA real estate agents from placing bids on behalf of the seller of the property. This is to stop sellers from artificially inflating auction prices at the expense of buyers. The amendment will allow sellers to place bids, but only in the particular circumstances of a court-ordered auction with no reserve price.
"This amendment addresses an unintended consequence of the original code," ACCC Chairman, Mr Graeme Samuel, said. "Western Australian home sellers will now have a greater choice of real estate agents in the case of court-ordered auctions. The Auction Code of Conduct will continue to protect consumers from misleading conduct such as artificial price inflation and dummy bidding.
"The ACCC is satisfied that the proposed variation will not reduce the level of public benefit generated by the original authorisation.