REINSW warns agents to limit auction crowds to 20 people

The NSW real estate industry peak body rushed to warn its members to limit on-site auctions to 20 people this weekend, a surprise move as Sydney’s COVID-19 case numbers edge up.

The Real Estate Institute of NSW published a video to its Facebook page late on Friday in which president Leanne Pilkington and chief executive officer Tim McKibbin urged their members to limit on-site auctions on Saturday to 20 attendees, excluding vendors and agents.

In the video, Ms Pilkington said the Institute was advised only on Wednesday of the rule by the Department of Fair Trading NSW’s director of consumer, building and property Matthew Whitton.

The warning brings into focus hundreds of auctions held in the state in the last two months with larger crowds, with scant previous communication about a 20-person cap.

Ms Pilkington told Domain that while open homes were exempt from the 20-person limit using the four-square-metre rule, it was not the same for auctions.

“I found out about it on Wednesday this week,” she said. “The threat was that there were fines going to be delivered [on Saturday] and we know there were just under 500 auctions planned for Sydney. There was no way to get around to all the agents.”

Underscoring the fluid discussions, a NSW Fair Trading spokesperson said late on Saturday that no more than 20 visitors could be on site at once for open homes.

Ms Pilkington said it was “a bit of a frenzy” on Friday afternoon trying to convince Fair Trading NSW not to issue fines this weekend.

“We spent all afternoon to get them to agree that they give advice rather than fining agents. It makes no sense that there is an exemption for open homes but not for auctions,” she said.

“It doesn’t matter how big the block of land is – even if it’s on two acres of land, you can only have 20 people. It’s part of the public health order. I’m not clear when that came out.”

The catalyst for the eleventh-hour announcement, according to Ms Pilkington, was that Fair Trading NSW inspectors conducted routine licence checks last weekend and discovered auction crowds of more than 20 people.

“Basically Fair Trading was saying you have to have marshalls at auctions and open homes … they were applying much stricter rules to the agent, than what the agents have to comply to,” she said.

“Agents don’t have to have COVID safe plans, we recommend it. They don’t need to wear masks, although we are suggesting they should,” Ms Pilkington said. “Our members were being told ‘you have to do this’ but it’s not legislated.”

A COVID-19 safety plan is recommended but not mandatory for the real estate sector, according to an email from the Institute sent to members, seen by Domain. The email also said masks and gloves are not mandatory but should be made available, while safety marshals are a “good idea” but not mandatory.

However a COVID-19 safety plan is mandatory for auction houses but it does not need to be registered, according to the Institute’s email.

Ms Pilkington said while this weekend was a warning, next weekend it would be enforced.

Bensons Auctions auctioneer Stu Benson said the last-minute announcement threw “a spanner in the works” for his Saturday auctions.

“Our 5.7-acre plot could have legally and responsibly accommodated a few hundred,” Mr Benson said.

“It’s bedlam. We’ve had agents and auctioneers messaging each other to establish procedure,” he added. “We did hear there were going to be spot checks by NSW Health … to make sure the regulation and guidelines are being adhered to.”

He said NSW Health needed to communicate with the Institute better to ensure any rules were practical and made sense.

“Alerting the industry hours before a huge day of auctions causes so much confusion … no one wants to be responsible for shutting down our industry or anyone else.”

A Department of Fair Trading NSW spokesperson told Domain the public health order does not contain an exemption for residential premises to hold more than 20 people, including auctions.

According to the Order: “People can participate in outdoor public gatherings of not more than 20 people. There is a 20-person limit on visitors to a home. The Order directs employers to allow employees to work from home if this is reasonably practical. The Order commenced on 1 July 2020.”

Domain understands a formal statement will be issued on Monday.

NSW recorded 14 new cases of COVID-19 on Saturday, with health authorities warning a Sydney CBD cluster linked to the City Tattersalls Club is likely to grow.