Buyer’s guide  ·  Victoria

Buying at auction in Victoria: what every buyer needs to know

There’s no cooling-off when you buy at auction in Victoria, and new reserve price rules started this month. Learn how auctions work, what to check first and how to bid with confidence.

Auctions are one of the most common ways to buy a home in Victoria. They’re fast, public and final. When the hammer falls and you sign the contract, you’re committed: there’s no cooling-off period and, usually, no finance condition.

Victoria’s auction rules have also just changed. From 1 October 2026, agents must give buyers a new Property Price Statement, and for auctions held from 16 October 2026, the seller’s reserve price must be published at least 7 days before the auction.

This guide explains how auctions work in Victoria, what the new pricing rules mean for you, and what to do before, during and after auction day.

How auctions work in Victoria

Auctions in Victoria are governed by the Sale of Land Act 1962, the Estate Agents Act 1980 and the Sale of Land (Public Auctions) Regulations 2024. The regulations set out the rules the auctioneer must follow.

The auction rules and an auction information statement must be on display at the auction venue for at least 30 minutes before bidding starts. Before taking bids, the auctioneer must tell bidders, among other things:

• that the auction is run under the auction rules and no bids will be accepted after the fall of the hammer;
• that bidders will be identified on request;
• that it’s against the law to make a false bid or disrupt the auction; and
• whether there will be vendor or co-owner bids, and any extra conditions that apply.

You can ask the auctioneer a reasonable number of questions during the auction, and if you’re bidding, you can ask who made another bid. Importantly, by bidding you accept the terms of the contract on display, so read it before the auction starts.

For more detail, see Consumer Affairs Victoria’s guide to buying property at auction.

No cooling-off period at auction

In a private sale, a Victorian buyer usually has a cooling-off period of 3 clear business days under section 31 of the Sale of Land Act. That right does not apply if you buy:

• at a publicly advertised auction; or
• within 3 clear business days before or after a publicly advertised auction.

That means a pre-auction offer accepted less than 3 clear business days before the auction has no cooling-off, and neither does a deal you negotiate soon after a property is passed in. In practice, once you sign, the contract is binding. All of your checks need to be done before auction day.

New reserve price and Property Price Statement rules

Victoria’s property pricing laws changed on 1 October 2026. According to Consumer Affairs Victoria:

• The Property Price Statement replaces the Statement of Information. It must show the agent’s selling price or a price range of no more than 10%, the property’s key features, three comparable sales (or an explanation if fewer than three can be found) and the suburb median price.
• The reserve price must be published. For auctions and fixed-date sales held on or after 16 October 2026, the agent must publish the seller’s reserve price at least 7 days before the sale, as a single dollar amount with no words like “from” or “over”. The auction can’t go ahead unless the reserve has been published for the full 7 days.
• Sold prices must be published. Within 7 days of a sale becoming unconditional, the agent must add the sale price to the Property Price Statement and keep it online for at least 18 months.

You can get the Property Price Statement at an open for inspection, through a link next to the price in the online listing, or from the agent within 2 business days of asking.

Underquoting

It’s illegal for an agent to advertise or tell you a price below the seller’s reserve or asking price, a written offer the seller has already rejected as too low, or the agent’s own estimated selling price. If you think a property has been underquoted, you can report it to Consumer Affairs Victoria.

Our view (speculative): a published reserve should make it much easier to judge whether a property is within your budget before you spend money on reports and inspections. It won’t tell you what the property will sell for, because competitive bidding can push the price well above the reserve.

Before auction day

Because there’s no cooling-off and no finance condition, preparation is everything. Before you bid:

• Get the section 32 statement and contract reviewed. Check the special conditions, the deposit, the settlement date and anything unusual in the title or planning information. See our guide to section 32 vendor statements.
• Arrange your finance. Get formal pre-approval and check it covers this property. Auction contracts almost never include a finance condition. Our guide to finance conditions in Victoria explains why that matters.
• Inspect the property. Get a building and pest inspection before the auction, because you can’t make the sale conditional on one afterwards. See our guide to building and pest conditions.
• Check the Property Price Statement and the published reserve, and set your limit, including stamp duty and other costs.
• Sort out your deposit. Ask the agent how the deposit must be paid. If you need a smaller deposit, or a different settlement date, you must agree it with the seller before the auction.
• Read Consumer Affairs Victoria’s due diligence checklist, which agents must make available at inspections.

From 1 June 2027, agents will have to make the section 32 statement available at least 14 days before an auction. Until then, ask for it as early as possible.

Vendor bids, co-owner bids and dummy bids

A vendor bid is a bid made on the seller’s behalf, usually to move the bidding towards the reserve. It’s allowed only if the auction rules on display permit it and the auctioneer announces it at the start. A vendor bid can only be made by the auctioneer, who must say it’s a vendor bid when making it.

Where a property is jointly owned, a co-owner who genuinely wants to buy may bid from the crowd, but not through the auctioneer.

Dummy bidding is illegal. An auctioneer must not invent bids or accept a bid they know is made for the seller outside the vendor bid rules, and it’s an offence for anyone to arrange an illegal bid. The auctioneer can still refuse a bid, refer a bid to the seller, or withdraw the property from sale.

If the auctioneer pauses to speak to the seller and then announces the property is “on the market”, the seller has agreed to sell to the highest bidder.

If you are the successful bidder

There’s no binding contract until both you and the seller sign. As the successful bidder, you’ll be asked to:

1. sign the contract on the same terms as the one on display;
2. pay the deposit set out in the contract, unless you agreed something different before the auction; and
3. settle on the date in the contract.

There’s no legal minimum deposit, but it’s usually 10% of the price. If you bring a bank cheque for 10% of your maximum bid and buy for less, your deposit will simply be more than 10%. The deposit is held in trust until settlement. In some cases the seller can ask for it to be released early, as explained in our guide to section 27 deposit release.

If you then can’t settle, the seller can serve a default notice and, if you don’t fix the default, end the contract and keep the deposit. That’s why finance must be in place before you bid.

If the property is passed in

If bidding doesn’t reach the reserve, the property is passed in. The highest bidder usually gets the first chance to negotiate with the seller. If that fails, the agent may approach other bidders, or the seller may offer the property for private sale.

Remember that a contract signed within 3 clear business days after the auction has no cooling-off period, even though you’re negotiating privately. You may be able to ask for conditions, such as finance, as part of the negotiation, but the seller doesn’t have to agree.

Frequently asked questions

This article is general information only and is not legal advice. It reflects Victorian law at the date of publication. Please contact us for advice about your circumstances.

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