Sheriff’s auctions of real estate differ from the usual auction conducted by real estate agents/licensed auctioneers. You are advised to read this information and seek independent legal advice if you intend to bid at a Sheriff’s auction.
What is the Sheriff selling at a real estate auction?
A person’s equitable interest in a property only.
Can I view the property before the auction?
Generally, a property cannot be inspected before a Sheriff’s real estate auction.
How can I attend a Sheriff real estate auction?
The Sheriff holds auctions online or at an advertised location. For online auctions, you need to register using the Sheriff’s Real Estate Online Auction registration form.
What is the reserve price for the property?
The Sheriff sets a reserve price, however it is not disclosed to the public.
What happens if the property does not sell at auction?
The Sheriff may host another auction and sell it without a reserve. The highest bid will usually be subject to court approval.
Does the Sheriff provide the certificate of title to the property?
No, the Sheriff does not have access to the certificate of title. The purchaser may need to take legal action to obtain the title.
Does the Sheriff provide a vendor’s statement?
No, the Sheriff does not provide a vendor’s statement.
Does the Sheriff insure the property?
No, the Sheriff does not insure the property.
How does the purchaser pay?
The purchaser must pay by Osko or Eftpos. Visit osko.com.au (External link) to check if your bank participates.
Are adjustments made for outgoings (such as rates) on the property?
No, the purchaser is liable for all unpaid and future outgoings for the property, including interest for those amounts.
Is there a cooling off period?
No, there is no cooling off period.
Does a Sheriff sale discharge other interests on the title - such as caveats?
No, the Sheriff sells the debtor’s interest in the property subject to all other interests and recordings on the title. The purchaser must pay any other encumbrances (such as mortgages or caveats) in addition to the final auction bid amount.
What happens if the judgment debtor is living at the property?
The Sheriff does not provide vacant possession. The purchaser may need to take legal action to obtain possession of the property.
Can this contract be subject to a loan being approved?
No, on the day of the auction you must have the ten percent deposit at the fall of the hammer and the remaining clear funds within 14 days of signing the contract.
Normal sales versus Sheriff’s sales
| Normal sale | Sheriff's sale |
|---|---|
| The property is being sold. | The person’s interest in the property is being sold. |
| Real estate agents are engaged to sell the property, or the registered proprietor can sell the property themselves. | Real estate agents are not engaged to sell the property. |
| Sales can be by auction, tender or private treaty. | Sales can only be by auction. |
| The seller generally holds open for inspections before selling the property. | The Sheriff does not generally hold open for inspections but may allow one in limited circumstances. |
| An auctioneer or a real estate agent will conduct the auction. | A sheriff’s officer will conduct the auction. |
| Auctions can be conducted online, at the property or at a disclosed location. | Auctions are normally conducted online but can also be conducted at a disclosed location. |
| If the property is passed in, the highest bidder can negotiate with the seller to buy the property. | If the property is passed in, the Sheriff cannot enter into negotiations with bidders. |
| The contract of sale can be conditional on finance or property reports for example. | The contract of sale must not have any conditions. |
| There is a reserve price but it is not disclosed. | There is a reserve price but it is not disclosed. |
| The seller can accept any price. | The Sheriff must obtain a fair and reasonable price for the property. |
| The sale price includes the payment of any other interest, such as mortgages, caveats and rates. | The sale price does not include the payment of any other interest, such as mortgages, caveats and rates. |
| The purchaser usually needs to pay a deposit | The purchaser must pay a 10% deposit on the fall of the hammer. |
| The deposit may be refundable depending on the contract. | The deposit is not refundable. |
| In some circumstances there is a cooling off period. | There is no cooling off period. |
| The purchaser pays stamp duty on the property (where applicable) | The purchaser pays stamp duty on the property. |
| The purchaser gets possession of the property on settlement. | The purchaser does not get possession of the property on settlement. |
| GST applies to sales of commercial and new residential properties | GST applies to sales of commercial and new residential properties |
| A vendor’s statement or section 32 is required. | A vendor’s statement or section 32 is not required. |
| The certificate of title is provided. | The certificate of title is not provided. |
| PEXA is used for normal sales. | If there is no outgoing or incoming mortgage, you can invite the Sheriff into the PEXA workspace to complete the transfer. If there is an outgoing or incoming mortgage, the transfer will need to be completed as a paper settlement until further notice. |
For more information
Visit Real estate auctions by the Sheriff or email realestatesection@justice.vic.gov.au (External link)
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