PropFi.NZ Ltd is a next generation property portal that offers the real estate industry an innovative, affordable and effective way to advertise, market and sell property online
The auction method of sale has been around for thousands of years. It’s tried and tested and it works. Traditional property auctions are held either in rooms or on site and the auction process is generally the same wherever you are. PropFi® is simply providing yet another venue for property auctions, which means they can also be held online. PropFi® provides a platform that facilitates the traditional auction process exclusively for real estate licensees and auctioneers.
In New Zealand, the new Auctioneers Act 2013, made it possible for real estate agents and salespeople licensed under the Real Estate Agents Act 2008 to sell, or offer to sell land by auction and thereby act as auctioneers. By taking auctions online, agents and salespeople are now able to achieve the same outcome that auctions can bring - an unconditional sale. They can also offer their clients another option with online auctions which are accessible to the greatest number of bidders who can bid for property safely, discreetly and conveniently from anywhere they choose …
The online auction process adheres strictly to the Conduct of Auction outlined in clause 2 of the Particulars and Conditions of Sale of Real Estate by Auction 2012 Fourth edition (5). Via the auctioneers’ dashboard, the auctioneer can start the auction live on the advertised date and time; make announcements to bidders; set and adjust the reserve price (on vendor’s instructions); set and adjust bidding increments; bid on behalf of the vendor (vendor bids) and bid on behalf of a third party (proxy bids); refuse any bid; announce that the property is “now selling” or “on the market” (once the reserve is met); pause the auction to chat to the vendor; close the auction and sell or pass in the property, cancel the auction at any time to withdraw the property and settle any bidding disputes.
After the auction, the auctioneer can sign the Memorandum of Contract on behalf of the purchaser who receives purchaser instructions. This instructs the purchaser to immediately pay to the vendor’s licensed real estate agent a deposit of 10% of the purchase price, unless otherwise agreed (signed variation) and complete the GST information in Schedule 1 if applicable.
An online auction conducted by a licensed real estate agent or salesperson acting as auctioneer is legally defined as an auction under NZ legislation and buyers and sellers have all the same rights. Bidders who wish to register for online auctions must have a verified identity, which is a once-off requirement on the site, before they can bid. It is a logical progression in the way in which people buy and sell houses and from a compliance point of view it is highly beneficial to the industry.
PropFi.NZ Ltd is a compelling inter-industry initiative that has propelled real estate into the world of buying and selling property online. PropFi.NZ Ltd proudly boasts a world first accomplishment with its first live online auction on 2nd November 2016 of 14 Orchard Way Bethlehem, Tauranga conducted by Rodney Fong of Ray White Tauranga.