Dummy bidding is when an agent, or person acting for the vendor, pretends to be genuinely interested in a property and makes bids at an auction.

If the dummy bids continue after the reserve price has been reached, the genuine bidder is being pushed to pay as much as they can.

The dummy bidding is considered unlawful, if it is not fully disclosed at the start of the auction and at the time the bid is made.

Vendor bidding however is an acceptable practice, used by a seller to make sure the property, reaches the reserve price.

The identity of the bidder is announced by the auctioneer, at the start of the auction and with each bid.

Vendor bids must discontinue, once bidding has reached the reserve price.

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