Prohibited conduct at auction: Auction CPD themes for NSW agents

For the 2026–2027 NSW CPD year (1 July 2026 to 30 June 2027), Auction laws and practice is a published compulsory interactive topic for residential real estate salespeople, buyers agents, and stock and station agents. Inside that topic, prohibited conduct — false bidding, dummy (shill) bidding, and misleading auction conduct — is where buyer confidence and licence risk meet on campaign day.

This article is a public explainer of how those auction-integrity CPD themes show up in day-to-day practice. It goes deeper than our auctions and CPD overview on the full before / during / after lifecycle. It summarises published Fair Trading CPD guidance and common professional-conduct principles drawn from approved Auction laws and practice learning. It is not legal advice, and it does not replace reading the official rules or completing your compulsory training.

According to the NSW Government CPD page (last updated 9 July 2026 at the time of writing), compulsory topics must be delivered by an approved provider in an interactive environment (face-to-face, maximum 40 attendees, or interactive webinar, maximum 25 attendees) and must include an assessment activity.

Who this auction-integrity deep-dive applies to in 2026–2027

Fair Trading lists Auction laws and practice among the compulsory topics for:

• Residential real estate salespeople — minimum 7 hours covering 4 compulsory topics
• Buyers agents — minimum 7 hours covering 4 compulsory topics
• Stock and station agents — minimum 7 hours covering 4 compulsory topics

Other Real Estate areas of practice (for example commercial agents or business brokers) have different published topic lists. Always match training to each licence category you hold and each area of practice in which you operate. See our 2026–2027 CPD requirements overview and multiple areas / dual-licences guide.

Compulsory auction learning must still come from a training provider approved by the Strata and Property Services Commissioner. EDUTIVE (Edutive Pty Ltd) is listed among the organisations approved to deliver compulsory learning topics between 1 July 2026 and 30 June 2027.

Why “genuine competition” is the core theme

Auctions depend on buyer confidence that competing bids are real. When agents, vendors, or associates manipulate the process, buyers may bid (or keep bidding) on a false picture of demand. CPD themes treat that integrity problem as occupational — not as optional etiquette.

Practical framing taught in auction CPD:

• Only genuine buyer bids and properly announced vendor bids should advance the price
• Statements about competition, registered interest, and “on the market” status must match what is actually happening
• Staff and associates are part of the risk surface — not only the auctioneer on the microphone

Completing the compulsory topic refreshes those boundaries. Supervised practice still has to apply them on every campaign.

False bidding vs lawful vendor bids

False bidding is making or accepting a bid that is not a genuine offer to purchase on the stated terms. Common risk patterns include:

• Calling or accepting a bid when no genuine bidder is willing to buy at that price
• Accepting a bid from someone with no intention of completing
• Continuing to accept bids after the property has been declared sold
• Careless acknowledgement of gestures as bids when no offer was intended

Lawful vendor bids are not the same thing — when they meet the published requirements taught in training (written authority, clear announcement, staying within reserve rules, and not continuing after the property is on the market in ways the rules forbid). An undisclosed vendor bid misrepresents the source of competition and sits with false-bidding risk, not with transparent vendor participation.

If your team uses euphemisms instead of a clear “vendor bid” announcement, treat that as a process failure to fix before the next auction — not as a wording preference.

Dummy (shill) bidding

Dummy bidding (also called shill bidding) is bidding to raise the price without a genuine intention to buy — typically at the direction of the vendor or agent.

Scenarios auction CPD commonly flags:

• An agency employee registers and bids to “warm up” the crowd
• A vendor’s friend or relative bids to drive the price without an announced vendor bid
• A selling agent signals an associate to place bids when momentum stalls
• Collusion that creates the appearance of competition where none exists

Industry and Fair Trading guidance is consistent on the principle: only genuine buyer bids and properly announced vendor bids may advance the price. Saleyard or agency “culture” is not a defence if the conduct creates false competition.

Misleading conduct around the auction

Misleading conduct is broader than bid manipulation. Themes that sit in Auction CPD include:

Misleading statements

• Claiming “multiple registered bidders” when that is not true
• Stating the property is “on the market” when the reserve has not been met (or waived under the rules you follow)
• Implying rival buyer interest when the only activity is vendor bids
• Price guidance that bears no reasonable relationship to reserve or likely sale outcomes

Misleading omissions

• Failing to announce vendor bids clearly
• Failing to disclose a material interest — for example, that a bidder is related to the vendor — where disclosure is required for a transparent process
• Concealing that the vendor has already rejected pre-auction offers above the current bidding level

Agents who repeat unverified vendor claims about competing interest can amplify the risk. Attribute carefully, verify where you can, and do not invent urgency.

Collusion and red flags

Collusive bidding — arrangements that suppress genuine competition between participants — harms vendors and other buyers. Agents must not participate in, facilitate, or ignore patterns that suggest collusion.

Practical red flags for campaign teams:

• Bids accepted from unregistered persons without scrutiny
• Agency staff seated among bidders who call out offers
• Vendor bids announced ambiguously or not at all
• Claims of “strong competition” that do not match registered bidder numbers
• Pressure to start before registration is complete

Prevention habits that commonly appear in training:

1. Mandatory bidder registration with identity checks
2. Pre-auction staff briefing on dummy-bidding prohibitions
3. Clear vendor-bid scripts for the auctioneer
4. Visible notices that vendor bids may be made
5. Post-auction review of the bidding record and any same-day complaints

How this fits your CPD and agency plan

Auction integrity training does not replace the rest of your pathway. Residential salespeople, buyers agents, and stock and station agents still need their other compulsory topics and minimum interactive hours for the year.

A practical mid-year approach:

1. Confirm Auction laws and practice applies to your current areas of practice.
2. Enrol with an approved provider in a qualifying interactive format.
3. Take prohibited-conduct outcomes back into agency checklists — registration, vendor-bid scripts, announcement language, and file discipline.
4. Log topic, provider, format, hours, completion date, and evidence in one place — CPD Tracker can help.

Licensees in charge should reflect auction training in the agency training plan where staff conduct or support auctions. See our guide to NSW LIC training plans and CPD.

How EDUTIVE can help

Browse interactive compulsory topics — including Auction laws and practice for applicable pathways — on the CPD Course catalogue, then track planned and completed sessions with CPD Tracker.

Always confirm your exact obligations against your licence categories, areas of practice, and the latest Fair Trading guidance before you enrol.

Frequently asked questions

Is Auction laws and practice compulsory in 2026–2027?

Yes for several pathways. Fair Trading lists it among the compulsory topics for residential real estate salespeople, buyers agents, and stock and station agents. Check the official CPD page for your exact list.

Are lawful vendor bids the same as dummy bidding?

No. Properly authorised and clearly announced vendor bids that stay within published rules are part of a transparent process. Dummy / shill bidding — bidding to raise the price without genuine purchase intent — is prohibited. Undisclosed vendor bids misrepresent who is competing.

Does completing auction CPD replace auction-day controls?

No. Training refreshes the framework. Bidder registration, clear vendor-bid scripts, staff briefings, and coherent records still need to operate under supervision on every campaign.

Who should treat auction integrity as a CPD priority?

Anyone whose pathway includes Auction laws and practice, plus licensees in charge supervising staff who conduct or support auctions. Match learning to each licence category and area of practice you actually work in.