Buying property in Sydney, a guide by Dotto

NSW law, lot by lot

Buying in Sydney · a guide published by Dotto

Buying in Sydney, from the first inspection to the fall of the hammer

This is a guide to how residential property is bought in Sydney under NSW law, and to where a buyer’s agent fits in, written and published by Dotto. Six lots, each one question, each read against NSW Fair Trading’s own pages.

Register.Bid.Reserve.Hammer.Exchange.

A drawn bidder paddle carrying the number 27 27 BIDDER
NSW sets no required form for a bidder’s number; agents decide. It can be printed on a paddle with a handle, or on card, plastic or laminated paper, so long as the auctioneer can see it clearly and each bidder has a different number.

The order of sale

Six lots, one question each

  1. Lot1

    What a buyer’s agent does

    Who a buyer’s agent acts for, the duties NSW sets for them, and how their role differs from the selling agent’s.

  2. Lot2

    Bidding at a NSW auction

    Registering, the bidder’s number, the conditions on the board, and what happens when the hammer falls.

  3. Lot3

    Underquoting rules in NSW

    What a selling agent may say about price, the 10% range rule, and the changes expected towards the end of 2026.

  4. Lot4

    Cooling-off in NSW

    Five business days (ten off the plan), 0.25% to step away, and the sales where there is no cooling-off at all.

  5. Lot5

    Contracts and conveyancing

    What comes attached to a NSW contract of sale, and the work a conveyancer or solicitor does before and after exchange.

  6. Lot6

    Strata reports before you bid

    What a strata search report covers, the section 184 certificate, levies and by-laws.

Before the first bid

The bidder’s card

To bid at an auction of residential or rural property in NSW, a buyer gives the selling agent their name and address and shows proof of identity. Without those details, they cannot bid. The agent writes them into the Bidders Record and hands over a bidder’s number, which has to be displayed with every bid.

The Bidders Record is private. The agent may not show it to anyone, including the owner of the property; only an authorised person from NSW Fair Trading may see it. Registering does not oblige anyone to bid. It only gives the right to.

When a licensed buyer’s agent registers to bid for a client, the agent’s licence number goes into the record too, and the agent may show their agency authority in place of a letter of authority. How bidding at a NSW auction works.

Bidders Record, one line
Bidder’s name and address
From proof of identity issued by a government or a financial institution
Identity number
The number on that proof of identity
Bidding for someone else
Their name, address and identity number, from a letter of authority
Buyer’s agent
Their licence number, if a licensed agent registers for a buyer
Bidder number
Different for every bidder, and clearly visible to the auctioneer
A drawing of the details NSW Fair Trading says a Bidders Record holds for each bidder. It records no real auction or person.

Two agents, two clients

Who acts for whom

A real estate agent who acts for the buyer is also known as a buyer’s agent, and needs a real estate agent’s licence to act as one, or else a certificate of registration plus a licensed real estate agent directing their work. The agent selling the property is not working for the buyer, but for the seller.

The selling agent

  • Acts for the seller.
  • Must pass on to the seller any further offers received, up until contracts are exchanged, unless the seller has instructed otherwise in writing.
  • May not quote a buyer a price below the estimated selling price recorded in the agency agreement.
  • Does not have to give the reserve price or the estimated selling price.

A buyer’s agent

  • Acts for the buyer, and must declare any conflict of interest in doing so.
  • Must keep the buyer informed of each stage of negotiating a price.
  • Must not go past the agreed price, in negotiation or at auction, without the buyer’s express written authority.
  • Must not accept any payment for referring the buyer to a selling agent.

What a buyer’s agent does, in full.

Houses of different ages stepping down a green hillside under a clear sky
Houses on a hillside. Photo by 𝕡𝕒𝕨𝕤 𝕒𝕟𝕕 𝕡𝕣𝕚𝕟𝕥𝕤 on Unsplash

On the board

The conditions of auction

NSW sets conditions for every auction of residential property, and the auctioneer must have them on display before and during the auction so bidders can read them. The buying at auction page holds the full list; these are the ones a bidder meets first.

  1. The seller’s reserve price is given to the auctioneer in writing before the auction starts.
  2. The highest bidder is the buyer, subject to any reserve price.
  3. The auctioneer may make one bid only on the seller’s behalf, and only if the conditions of sale give that right and the auctioneer announced before the auction that they may; they must announce that it is a vendor bid immediately before or while making it.
  4. A bid that does not serve the seller’s interests can be turned down by the auctioneer.
  5. No bid can be made or accepted after the fall of the hammer.
  6. In a disputed bid, the auctioneer is the sole arbiter and the decision is final.

Where to check

The official places behind every lot

  • Buying property in NSWNSW Fair Trading’s guide for buyers, from finance and inspections to auctions, offers and contracts.
  • Licence checkShows whether a property agent or conveyancer holds a current licence or certificate, and any disciplinary action taken.
  • NSW Fair Trading complaintsComplaints about real estate agents, including suspected underquoting, can be lodged online or on 13 32 20, 8:30am to 5pm, Monday to Friday.
  • NSW Valuer General Valuation PortalA government service for searching land values and property sales information, free of charge.