AU2014246653A1

AU2014246653A1 - Property auction method and apparatus

Info

Publication number: AU2014246653A1
Application number: AU2014246653A
Authority: AU
Inventors: Julie TYMMS; Mirray TYMMS
Original assignee: Poa Tech Pty Ltd
Current assignee: POA TECHNOLOGIES Pty Ltd
Priority date: 2013-04-02
Filing date: 2014-04-01
Publication date: 2015-10-22
Also published as: WO2014161032A1

Abstract

Apparatus for performing an auction of a property in a networked computer environment, the apparatus including a processing system that receives a bid from an bidder via a communications network, increases a current bid value in accordance with the bid, determines if the bid is a winning bid and for a winning bid, generates a notification for the winning bidder, the notification allowing the winning bidder to receive an option on the property, the option allowing the winning bidder to receive ownership of the property.

Description

WO 2014/161032 PCT/AU2014/000347 PROPERTY AUCTION METHOD AND APPARATUS Background of the Invention [0001] The present invention relates to a method and apparatus for auctioning a property, and in one particular example, to a method and apparatus for auctioning a property by auctioning an option on the property. Description of the Prior Art [0002] The reference in this specification to any prior publication (or information derived from it), or to any matter which is known, is not, and should not be taken as an acknowledgment or admission or any form of suggestion that the prior publication (or information derived from it) or known matter forms part of the common general knowledge in the field of endeavour to which this specification relates. [0003] A bidding fee auction, also called a penny auction, is a type of auction in which participants pay a fee to place small incremental bids. The auction ends after a period of time with no new bids, with the last bidder winning the item. In such auctions, the winning bidder pays the final bid price, which is significantly lower than the retail price of the item, whilst the auctioneer makes money on the fees for each bid as well as the payment for the winning bid. [0004] However, there are limitations on the applicability of bidding fee actions to some forms of article, such as real estate, or other properties rights. In particular, because the price paid by the winner of the auction is only a percentage of the genuine value of the product, this can have implications regarding the perceived ongoing value, as well as other financial implications, such as tax implications. Summary of the Present Invention [0005] In a first broad form the present invention seeks to provide apparatus for performing an auction of a property in a networked computer environment, the apparatus including a processing system that: a) receives a bid from an bidder via a communications network; WO 2014/161032 PCT/AU2014/000347 -2 b) increases a current bid value in accordance with the bid; c) determines if the bid is a winning bid; and, d) for a winning bid, generates a notification for the winning bidder, the notification allowing the winning bidder to receive an option on the property, the option allowing the winning bidder to receive ownership of the property. [0006] Typically the processing system, upon receipt of a bid, uses a timer to determine if a time limit expires before another bid is received. [0007] Typically the processing system determines the time limit based on at least one of: a) a current bid value; and, b) an auction time. [00081 Typically, upon receiving a bid, the processing system: a) determines if the bid is a valid bid; and, b) processes the bid if the bid is a valid bid. [00091 Typically the processing system determines a bid is a valid bid by: a) confirming the bidder is registered to bid; and, b) confirming the bidder has available bids. [0010] Typically for a valid bid, the processing system: a) updates a number of available bids for the bidder; and, b) updates the current bid value. [0011] Typically the processing system: a) receives an auction registration request; b) determines if the auction is open; and, c) registers the user as a bidder at least partially in response to a successful determination. [0012] Typically the processing system: a) receives an auction registration request from a user; b) determines if the user has sufficient funds; and, c) in response to a successful determination, at least one of: WO 2014/161032 PCT/AU2014/000347 -3 i) registers the user as a bidder; and, ii) updates a user account. [00131 Typically the processing system provides a registration notification to a user registered as a bidder. [0014J Typically the registration notification includes an indication allowing the user to refer a third party to the auction. [0015] Typically the processing system: a) compares a number of registered bidders to a bidder threshold; and, b) commences the auction at least partially in response to a successful comparison. [00161 Typically the processing system determines the bidder threshold at least partially in accordance with a property value. [0017] Typically, the processing system: a) provides an auction commencement notification to registered bidders, the commencement notification including an indication of a commencement time; and, b) commences the auction at the commencement time. 100181 Typically for a winning bidder associated with a winning bid, the processing system: a) determines required information relating to the winning bidder; and, b) uses the required information to arrange transfer of the option. 100191 Typically the processing system: a) generates a representation indicative of auction details, including at least one of a current bid value and a timer; and, b) transfers the representation to the computer system via the communications network. [00201 In a second broad form the present invention seeks to provide a method of auctioning a property in a networked computer environment, the method including: a) receiving bid from bidders via a communications network; WO 2014/161032 PCT/AU2014/000347 -4 b) determining a winning bid; and, c) providing an option on the property to a bidder associated with the winning bid, the option allowing the winning bidder to receive ownership of the property. [0021] Typically the method includes determining a winning bid based on a current bid when a time limit expires. [0022] Typically the time limit depends on at least one of: a) a current bid value; and, b) an auction time. Brief Description of the Drawings [0023] An example of the present invention will now be described with reference to the accompanying drawings, in which: [0024] Figure 1 is a flow chart of an example of a property auction process; [0025] Figure 2 is a schematic diagram of an example of a distributed computer architecture; [0026] Figure 3 is a schematic diagram of an example of a base station processing system; [0027] Figure 4 is a schematic diagram of an example of a computer system; [0028] Figure 5 is a flow chart of an example of a process of registering for an auction; [0029] Figure 6 is a flow chart of an example of a process of preparing an auction; [0030] Figure 7 is a flow chart of an example of a process of performing an auction; [0031] Figure 8A is a schematic diagram of an example of a first user interface for use in participating in an auction; and, [0032] Figure 8B is a schematic diagram of an example of a second user interface for use in managing an account. Detailed Description of the Preferred Embodiments [0033] An example of a process for auctioning a property will now be described with reference to Figure 1. [0034] In this example, it is assumed that the process is performed at least in part using an electronic processing device forming part of a processing system, which is in turn connected WO 2014/161032 PCT/AU2014/000347 -5 to one or more other computer systems via a network architecture, as will be described in more detail below. [0035] For the purpose of the example, the following terminology will be used. The term "user" is used to refer to an entity such as an individual, company, or the like, that is interacting with the processing system, for example to view details of available auctions, but is not necessarily participating in bidding activities. The term "bidder" refers to a user making a bid, whilst the term "winning bidder" refers to a bidder that has made a winning bid as part of a particular auction. [0036] In this example, at step 100 the processing system receives a bid from a bidder. The bidder is an entity that is able to make bids on the property, which in turn typically requires that the entity register to participate in the bidding process in advance of the auction being performed, as will be described in more detail below. The bid may be received in any one of a number of ways but is typically received from a computer system via a communications network. As part of this process, the processing system may also generate a representation indicative of auction details, such as a current bid value and time limit for bidding, with this representation being displayed to the user via the computer system. [0037] The representation could be in any appropriate form depending on the preferred implementation. In one particular example, bidding is performed in an online environment, with the representation being webpages hosted by the processing system that allow users to view information, including auction details, such as the current bid value and time available for bidding, details of available properties, user account information, or the like, as well as allowing users to submit bids, so the users act as bidders. However, this is for the purpose of example only, and in practice any mechanism for receiving the bid and/or displaying auction details, such as through use of other communications channels including SMS (Short Messaging Service), email or the like, could be used. [0038] At step 110 the processing system increases a current bid value in accordance with the received bid, so that the current bid value on the property corresponds to the most recently received bid. At step 120 the processing system determines if the bid is a winning bid and if WO 2014/161032 PCT/AU2014/000347 -6 not returns to step 100 allowing further bids to be received. Thus, it will be appreciated that bidding continues until a winning bid is made. [0039] A winning bid that can be determined in any one of a number of ways depending on the preferred implementation. For example, a winning bid could be the first bid received which is greater then a predetermined threshold. More typically however a time limit is placed on the process of making bids so that the winning bid is the first bid that is received and for which no subsequent bids are received within a given time limit. Whilst the time limit may be fixed, more typically the time limit is set based on a range of factors, such as the current bid value, the amount of time for which the auction has been progressing, or the like. This can be used to modify the time limit as the bidding process progresses, for example to reduce the time limit, thereby stimulating excitement around the bidding process as will be described in more detail below. [0040] At step 130 the processing system generates a notification for the winning bidder that made the winning bid. The notification can be used to inform the bidder that they have won the auction and can allow the bidder to receive an option on the property. This process is typically facilitated by having the processing system obtain required information from the winning bidder and using this to populate the necessary paperwork, thereby assigning the option to the winning bidder. The option can then be subsequently used to allow the winning bidder to receive ownership of the property as will be appreciated by a person skilled in the art. [0041] Accordingly, the above describe process allows an auction to be performed on a property, such as commercial or residential real-estate, by auctioning an option on the property, which can be subsequently assigned and then exchanged for the property itself. Performing the auction by auctioning the option on the property allows the option on the property to be sold at any value which may not necessarily reflect the value of the property, without adversely affecting the true value of the property. [0042] Thus, the operator of the auction can procure an option on the property in accordance with normal market rates, thereby protecting the value of the property and ensuring all financial and legal obligations, such as stamp duty payments, are met on the basis of the WO 2014/161032 PCT/AU2014/000347 -7 legitimate value of the property. The operator then auctions an option on the property, with the value of the winning bid on the auction having no impact on the value of the property, whilst still allowing the property to be acquired by the winning bidder. [0043] In one example, this allows the auction to be performed as a fee paying auction in which bids are incremented by small currency values such as one cent. In this instance, fees are paid by users to participate in the auction, for example by charging users a flat fee to register as a bidder and/or by charging a fee to purchase or make individual bids. By structuring the auction appropriately, for example by ensuring a suitable number of bidders register for the auction, this allows sufficient revenue to be recovered by the operator of the process to cover costs and purchase the property. Despite this, as bids increase in only single cent values, the property option on the property is typically auctioned for a small percentage of the property value such as less then 10%. [00441 Accordingly, in this arrangement the auction organiser can run the auction and sell the option on the property for a notional amount to the highest bidder. The organiser of the auction receives sufficient revenue allowing them to cover the purchase the property, any necessary legal expenses including conveyancing fees, lawyer's charges, stamp duty or the like. The option on the property is then provided to the winning bidder allowing the winning bidder to "call" the option with the property being legally transferred from the option organiser to the winning bidder. [0045] It will therefore be appreciated that this provides a mechanism for allowing a property to be sold at a nominal value far below market value whilst still ensure legal requirements of the property sale are met, as well as ensuring market value of the property is maintained. [0046] Despite this, it allows bidders to bid on properties at small notional values such as a few thousand dollars this therefore makes the auction process particularly attractive, thereby encouraging large participation in the auction, whilst avoiding any of the legal issues associated with the notional price for which the property is auctioned. [0047] A number of further features will now be described.

WO 2014/161032 PCT/AU2014/000347 -8 [0048] As described above bids are incremented by small values such as one cent. The typical sale price of the property is a few percent of notional market value. It will be appreciated however that this can still be several thousand dollars, which if incremented in single cent bids would mean that the auction would take a significant amount of time. To avoid undue delays and to increase excitement associated with the auction process, a time limit can be used to limit the available time between bids and to constrain the overall duration of the auction. [0049] The time limit can be implemented by having the processing system use a timer upon receipt of a bid to determine whether a time limit expires before another bid is received, in which case the most recent bid becomes the winning bid. The time limit can vary throughout the auction process and in one example, can depend on a current bid value and an auction time. Expiration of the time limit can be determined in any suitable manner such as by comparing a timer to a threshold and determining if the timer has reached the threshold, or alternatively the timer can be started at a particular value and count down to zero with the value being selected based on the current bid value or the auction time. [00501 In one example, this is used so that the time limit available to bid decreases progressively as the auction continues. In one example, the time limit may initially start at a relatively high value such as 30 seconds, with the time limit progressively decreasing down to a few seconds as the auction continues. It should be noted that this is not a trivial issue as when performing auction manually it is not possible to process bids on such a short time scale. Accordingly, it will be appreciated that as the time limit for bidding approaches a few tens of seconds or less, it is only feasible for this auction process to be implemented utilising an electronic bidding system. Furthermore, whilst the electronic bidding system could be implemented at a single location, in practice this is performed using a distributed architecture so that bidders may be geographically separated making the auction more convenient for bidders. [00511 During the bidding process, when the processing system receives a bid the processing system will typically determine if the bid is a valid bid and then only process the bid if it is valid. In particular, this process may involve confirming that the bidder is registered to bid, for example confirming the bidder has paid a registration fee, as well as confirming that the WO 2014/161032 PCT/AU2014/000347 -9 bidder has available bids. In this regard, the bidder is typically required to purchase bids, with the processing system recording how many bids the user has available. Whilst this can be achieved in any suitable manner, the processing system may administer an account on behalf of the user, with the account including information such as a number of available bids. In this instance, as a user bids, the account is updated so to reflect the number of bids remaining. [0052] In one particular example, a user must pay a dollar for each bid with each bid corresponding to a single cent increase in purchase price for the property, although it will be appreciated that any suitable values can be used. [0053] As mentioned above users typically undergo a registration process and accordingly, the processing system typically receives an auction registration request, determines if an auction corresponding to the request is open and then registers the user as a bidder in response to a successful determination. It will be appreciated from this that the processing system can run a number of different auctions simultaneously, with the user opting into particular auctions by registering. [00541 The registration typically requires the user to pay an associated fee and accordingly, the processing system, upon receiving an auction request from a user, will determine if the has sufficient funds and in response to a successful determination register the user as a bidder and update a user account. In this regard, the user account can specify an amount of money available for the user to spend and this typically corresponds to funds provided by the user in advance. In the event that insufficient funds are available, the user may be provided with the opportunity to provide supply additional funds. [00551 Once the user has been registered the processing system provides a registration notification to the user confirming they registered as a bidder. In one example the registration notification includes an indication allowing the user to refer a third party to the auction. This is a mechanism to encourage additional users to join the auction as bidders as will be described in more detail below. [0056] Typically during the registration process the processing system will compare a number of registered bidders to a bidder threshold and commence the auction in response to a WO 2014/161032 PCT/AU2014/000347 - 10 successful comparison. In this regard, the auctions typically require a minimum number of registered bidders in order to be profitable. In particular, the bidder threshold corresponding to the number of registered bidders required to make a profit, can be selected at least partially in accordance with a property value. [0057] For example, if each bidder is required to pay $100 in order to register a number of bidders may be set at 5000 allowing a $500,000 property to be auctioned. It will be appreciated that in this instance with 5000 bidders registering as part of the process, the property value can be covered solely through the registration fees. Any additional money spent during the auction on bids as well as the final bid value, will represent profit for the auction organiser. 10058] However, it will be appreciated that the above described payment values and number of bidders is for the purpose of illustration only and is not intended to be limiting. In this regard, different numbers and payment amounts can be used depending on factors, such as the property value, or the country within which bidders are location. For example, in some jurisdictions, bidders may find the amount of $100 to be prohibitive, in which case lower registration payments may be required. In one example, this can be achieved by allowing the auction operator to define different registration fees depending on the country in which bidders are located. In this example, the number of required bidders can be determined either based on an absolute number of bidders, or alternatively based on an amount of revenue received from registration fees, thereby ensuring sufficient revenue is obtained. [00591 As mentioned above, once a required number of bidders have registered the auction can commence. Whilst commencement can be immediate, more typically commencement occurs after a set time period, so upon a successful comparison, an auction commencement countdown begins, as will be described in more detail below. At this point in time the processing system can provide an auction notification to registered bidders, the notification including an indication of a commencement time for the auction. Thus, this allows users to register as bidders in advance for the auction with nothing further being required until the auction commences, and with the bidders being automatically notified once the required number of bidders has been registered and the auction is to commence.

WO 2014/161032 PCT/AU2014/000347 - 11 [0060] Once the auction has been concluded, the processing system will determine required information relating to a winning bidder and then use this information to arrange transfer of the option. The required information will typically be any information required in order to transfer the option as will be appreciated by a person skilled the art. [0061] In one example, the process is performed by one or more processing systems operating as part of a distributed architecture, an example of which will now be described with reference to Figure 2. [0062] In this example, a base station 201 is coupled via a communications network, such as the Internet 202, and/or a number of local area networks (LANs) 204, to a number of computer systems 203. It will be appreciated that the configuration of the networks 202, 204 are for the purpose of example only, and in practice the base station 201 and computer systems 203 can communicate via any appropriate mechanism, such as via wired or wireless connections, including, but not limited to mobile networks, private networks, such as an 802.11 networks, the Internet, LANs, WANs, or the like, as well as via direct or point-to point connections, such as Bluetooth, or the like. [0063] In one example, the base station 201 includes a processing system 210 coupled to a database 211. The base station 201 is adapted to be used in running the auction and in particular, in coordinating the bidding process, as well as maintaining information regarding bidders or users, and to administer billing and other related operations. The computer systems 203 are therefore adapted to communicate with the base station 201, allowing bids and other information to be submitted, as well as allowing details of the auction, such as a current bid value, to be reviewed. [0064] Whilst the base station 201 is a shown as a single entity, it will be appreciated that the base station 201 can be distributed over a number of geographically separate locations, for example by using processing systems 210 and/or databases 211 that are provided as part of a cloud based environment. [0065] However, the above described arrangement is not essential and other suitable configurations could be used.

WO 2014/161032 PCT/AU2014/000347 - 12 [00661 An example of a suitable processing system 210 is shown in Figure 3. In this example, the processing system 210 includes at least one microprocessor 300, a memory 301, an optional input/output device 302, such as a keyboard and/or display, and an external interface 303, interconnected via a bus 304 as shown. In this example the external interface 303 can be utilised for connecting the processing system 210 to peripheral devices, such as the communications networks 202, 204, databases 211, other storage devices, or the like. Although a single external interface 303 is shown, this is for the purpose of example only, and in practice multiple interfaces using various methods (eg. Ethernet, serial, USB, wireless or the like) may be provided. [00671 In use, the microprocessor 300 executes instructions in the form of applications software stored in the memory 301 to allow the auction process to be performed, as well as to perform any other required processes, such as communicating with the computer systems 203. The applications software may include one or more software modules, and may be executed in a suitable execution environment, such as an operating system environment, or the like. [0068] Accordingly, it will be appreciated that the processing system 300 may be formed from any suitable processing system, such as a suitably programmed computer system, PC, web server, network server, or the like. In one particular example, the processing system 300 is a standard processing system such as a 32-bit or 64-bit Intel Architecture based processing system, which executes software applications stored on non-volatile (e.g., hard disk) storage, although this is not essential. However, it will also be understood that the processing system could be any electronic processing device such as a microprocessor, microchip processor, logic gate configuration, firmware optionally associated with implementing logic such as an FPGA (Field Programmable Gate Array), or any other electronic device, system or arrangement. [0069] As shown in Figure 4, in one example, the computer system 203 includes at least one microprocessor 400, a memory 401, an input/output device 402, such as a keyboard and/or display, and an external interface 403, interconnected via a bus 404 as shown. In this example the external interface 403 can be utilised for connecting the computer system 203 to peripheral devices, such as the communications networks 202, 204, databases 211, other WO 2014/161032 PCT/AU2014/000347 - 13 storage devices, or the like. Although a single external interface 403 is shown, this is for the purpose of example only, and in practice multiple interfaces using various methods (eg. Ethernet, serial, USB, wireless or the like) may be provided. [0070j In use, the microprocessor 400 executes instructions in the form of applications software stored in the memory 401 to allow communication with the base station 201, for example to allow data to be supplied thereto and allowing details of the bidding process to be displayed to participants, such as bidders. [0071] Accordingly, it will be appreciated that the computer systems 203 may be formed from any suitable processing system, such as a suitably programmed PC, Internet terminal, lap-top, hand-held PC, smart phone, PDA, web server, or the like. Thus, in one example, the processing system 300 is a standard processing system such as a 32-bit or 64-bit Intel Architecture based processing system, which executes software applications stored on non volatile (e.g., hard disk) storage, although this is not essential. However, it will also be understood that the computer systems 203 can be any electronic processing device such as a microprocessor, microchip processor, logic gate configuration, firmware optionally associated with implementing logic such as an FPGA (Field Programmable Gate Array), or any other electronic device, system or arrangement. [00721 Examples of the auction process will now be described in further detail. For the purpose of these examples, it is assumed that the processing system 210 maintains a user account set-up during a registration process. The user account can store information relating to the user, such as authentication information, financial information, such as an amount of pre-paid or otherwise available credit, and optionally other information such as a bidding history, contact information or the like. As part of the registration process, a potential user may also undergo identity verification, for example by having them supply identification information, such as passport, credit card details and the like. This can be used to avoid fraudulent use of the system, as well as to meet financial auditing requirements. 10073] It is also assumed that the processing system 210 hosts webpages allowing the user to browse details of available auctions, participate in auctions and submit bids. The processing system 210 is therefore typically a server which communicates with the computer system 203 WO 2014/161032 PCT/AU2014/000347 - 14 via a communications network, or the like, depending on the particular network infrastructure available. [0074] To achieve this the processing system 210 of the base station 201 typically executes applications software for hosting webpages and running auctions, with actions performed by the processing system 210 being performed by the processor 300 in accordance with instructions stored as applications software in the memory 301 and/or input commands received from a user via the I/O device 302, or commands received from the computer system 203. [0075] It will also be assumed that the user interacts with the processing system 210 via a GUI (Graphical User Interface), or the like presented on the computer system 203, and in one particular example via a browser application that displays webpages hosted by the base station 201. Actions performed by the computer system 203 are performed by the processor 401 in accordance with instructions stored as applications software in the memory 402 and/or input commands received from a user via the I/O device 403. [0076] However, it will be appreciated that the above described configuration assumed for the purpose of the following examples is not essential, and numerous other configurations may be used. It will also be appreciated that the partitioning of functionality between the computer systems 203, and the base station 201 may vary, depending on the particular implementation. [0077] An example process for registering a bidder for a property auction will now be described with reference to Figure 5. [0078] In this example, the user uses a computer system 203 to access a webpage hosted by the base station 201, allowing the user to browse or search for properties available as part of upcoming auctions and select a property of interest at step 500. This may be achieved using any suitable mechanism but would typically involve displaying a list of available properties with the user being able to review details and then indicate a selection of one of the properties through an appropriate web interface as will be appreciated by a person skilled in the art.

WO 2014/161032 PCT/AU2014/000347 - 15 10079] At step 505 the user is optionally prompted to login, for example if they have not already done so. As part of the login process the user typically provides authentication information, such as a username or password, which has previously been established with the base station 201. At step 510 the base station 201 determines if the user was authenticated and if not, provides an access rejection notification which directs the user to either attempt to login again or register for login. It will be appreciated that this login process outlined in steps 505 to 515 is a typical website login process and this will not be described in any further detail. It will also be appreciated that the login and browsing processes can be performed in any order and that the above example is for the purpose of illustration only. [0080] At step 520, assuming the user has been successfully authenticated, the processing system 210 will determine if the auction is still open for the selected property. If not, at step 525 the processing system notifies the user that the auction has closed allowing the process to return to step 500 so that the user can select an alternative property. [0081] Otherwise, assuming the auction is open, the process moves on to step 530 allowing the processing system 210 to ascertain whether the user has sufficient funds to pay the registration fee. In this regard, the registration fee may be of any appropriate value, typically set by the auction organiser. The registration fee may also vary depending on options selected by the user. Thus, for example, the user may select to simply pay a registration fee or alternatively purchase a bidding pack which includes payment of the registration fee and purchase of a number of bids. In a further example, the registration fee may be paid using bids, so for example the user could submit $100 worth of bids to cover the registration fee. [0082] If the user does not have sufficient funds or bids, at step 535 the processing system 210 generates a prompt asking the user to provide further funds or purchase further bids. At step 540 the processing system 210 determines if further funds are provided or further bids purchased, and if not the processing system 210 does not register the user for the auction, with a notification of this being provided to the user, for example by directing the user to a suitable webpage. It will be appreciated that at this point, the process may return to step 500, allowing an alternative property to be selected, or alternatively to step 540 allowing further funds to be provided.

WO 2014/161032 PCT/AU2014/000347 - 16 10083] In any event, at step 550 once sufficient funds or bids have been made available, the processing system 210 updates a user account to reflect the new level of funds available after the registration fee has been deducted with the user being added to a list of registered bidders. At step 555 the processing system 210 provides a notification of registration to the user, for example by email, SMS, displaying an appropriate webpage, or the like. The notification typically includes a link allowing the user to view information regarding the auction, such as when this will start. The notification also optionally includes a link, such as a URL (Universal Resource Locator) which allows the user to refer third parties. The referral process is typically used to encourage additional users to join in the auction. In order to achieve this, upon successful referral of a third party a user may be provided with "free" bids allowing them to participate in the auction without having to buy additional bids. [0084] At step 565 the user may further optionally purchase additional bids. It will be appreciated that this can be achieved in any suitable manner but typically involves having the user access a "purchase bids" option on a webpage hosted by the processing system 210, allowing funds to be deducted from the user account with the processing system 210 updating the user account to reflect an increased number of available bids. [0085] An example of a process for preparing an auction will now be described with reference to Figure 6. [0086] In particular, at step 600 each time an individual registers to bid, the processing system 210 will determine a number of registered bidders and assess whether a bidder threshold has been reached at step 605. As previously described, the bidder threshold is typically selected to ensure that the registration fees would cover the purchase price of the property, and optionally other associated expenses, thereby ensuring that the auction organiser is able to at least cover administrational costs of operating the auction. In one example, the bidder threshold may be set so that registration fees amount to an amount greater than the property value. [0087] In the event that the bidder threshold has not been reached, the process continues with further bidders being registered at step 610 and the process returning to step 600 to determine WO 2014/161032 PCT/AU2014/000347 - 17 a number of registered bidders. This continues until a required number of bidders have been registered. [0088] Once this occurs, the processing system 210 determines an auction start time, notifies the registered bidders, and initiates an auction commencement timer, which counts down to the auction start time. Notification of the start time can be achieved in any suitable manner, but typically involves the use of email, SMS, or the like, thereby ensuring the start time is communicated to all registered bidders. The start time may also be indicated on a webpage, accessed via a link provided to the bidders upon registration. The auction start time will typically be a set time period from when the number of the registered bidders has been reached, such as 48 hours, allowing sufficient time to notify registered bidders that the auction is to occur. Additionally, auctions will typically operate at a fixed time of day, such as. 6pm, maximising the opportunity for bidders to be available. However it will be appreciated that this is for the purpose for example only and any suitable time can be used depending on the preferred implementation. [00891 At step 620 the processing system 210 optionally registers any further bidders, such as referred or other interested bidders, with the processing system 210 performing a similar registration process to that set out above with respect to steps 505 to 565. [0090] The processing system 210 will then continue to monitor the auction commencement timer to determine the time until the auction starts, commencing the auction at the appropriate time at step 625. During this process, the processing system 210 typically hosts a webpage that can be viewed by registered bidders, and which displays information regarding the auction. This can include a countdown timer showing how long remains before the auction is to occur, and may also display other relevant information, such as a number of bidders registered, or the like. This can be used to heighten the anticipation of bidders, increasing their likelihood of participation in the auction, as well as allowing unregistered bidders to register. [0091] The auction process will now be described in more detail with reference to Figure 7. [0092] In this example, once the auction start time occurs the processing system 210 hosts an auction webpage that can be accessed by registered bidders only. The webpage will typically WO 2014/161032 PCT/AU2014/000347 - 18 be hosted at a particular URL which can be notified to registered bidders as part of the notification process at step 615. The webpage would typically display information regarding the auction and will typically be viewable prior to the auction commencing, as described above. [00931 The information displayed can vary depending upon the preferred implementation and may include an indication of the number of registered bidders currently present (i.e. logged into the particular webpage) so that this assists in generating excitement surrounding the auction. The webpage will also typically display information relevant to the auction such as a current bid and a countdown timer showing the amount of time available to make further bids. [0094] An example of a user interface for use in participating in an auction, and in particular of a webpage displayed using a browser application, will now be described with reference to Figure 8A. 100951 In this example, the webpage 800 includes basic auction details including a property address 801, and auction status information 802, 803. A number of page tabs 804 are provided allowing a user to view pages including information regarding the property, such as photos, a video, floor plan and map. Additionally a tab is provided for allowing the user to view current bids, as will be described in more detail below. [00961 The webpage 800 includes a bid/timer window 810 showing an indication of a current bid price 811, the countdown timer 812, a timer limit value 813 and a bid input option 814, allowing a user to make a bid. It will be appreciated that this allows the user to view details of the current auction progress, and also make bids as required, as will be explained in more detail below. A further linear indicator 815 in the style of a thermometer is provided to show the maximum number of paid bids that have been spent. [0097] The webpage 800 also includes an incentive window 820, displaying details of a current incentive, such as a free prize, or the like, as well as current highest and second highest bidder information 821. In this regard, the system can be adapted to incentivise bidding by providing prizes to the highest bidder during a predetermined time period, such as WO 2014/161032 PCT/AU2014/000347 - 19 each hour. This allows users to see the number of bids placed by the current highest and second highest bidder, which can encourage users to make additional bids. [0098] The webpage 800 displays a purchase window 830, including a number of input buttons 831 allowing users to select bid packages for purchase. [0099] In this example, with the bid tab 804 selected, a bid window 840 is displayed, which allows a user to view a bid history list 841, showing recent bids by all of the bidders in the auction, as well as their own personal bid history list 842, showing just their own bids. This information is updated in real time during the bidding process, as will be described in more detail below, allowing user's to view details of their own bids but also those of other bidders. This provides transparency to the system, giving users greater confidence in the legitimacy of the auction process. [0100] At step 700 when the auction commences the processing system 210 sets the auction timer and a current bid value, which is displayed in the bid/timer window 810, with the processing system 210 then monitoring for bids at step 705. Bidding is typically performed by having a user select a bid option presented to them via the webpage, with the processing system 210 determining selection of the bid option, using known techniques. It will be appreciated that as part of this process, the processing system 210 will ascertain when the bid was made and resolve any conflicts in the event that bids are received from multiple parties simultaneously. [0101] At step 710 the processing system 210 determines if a bid has been received and if not whether the time limit has expired at step 715. If no bid is received and the time limit has not expired the processing system returns to step 705 to continue monitoring for bids. [0102] In the event that a bid is received, then the process moves on to step 720 with the processing system 210 operating to assess whether the bid is valid. In particular, this will typically involve the processing system 210 ensuring that the bid has been received from a registered bidder and also that the registered bidder has bids available. In the event that the bid is determined to be invalid for any reason, the processing system 210 notifies the bidder that the bid is being rejected at step 725, returning to step 705 to allow the processing system 210 to continue monitoring for bids. As part of this process, the user making the bid may be WO 2014/161032 PCT/AU2014/000347 - 20 directed to webpage indicating to them why the bid has been rejected, and allowing them to correct any deficiencies, for example by allowing the user to purchase additional bids. [0103] If it is determined that the bid is valid at step 720 the process moves on to step 730 with the bidder account being updated with an indication of the current bid, and to reduce an indication of the number of bids available. The processing system 210 designates the bid as a current bid, which in one example simply involves incrementing a value of a previous bid by a predetermined amount, such as one cent, and displaying this in the bid/timer window 810. The processing system 210 will also records details of each bid, for example in a suitable database or the like, allowing this to act as a log of the bidding process, so that the auction can be subsequently reviewed as required. As part of this process, the processing system 210 also adds details of the bid to the bid history list 841 of all users, and also to the personal bid history list 842 of the user making the bid. Additionally, and/or alternatively, an assessment of the bid may be made, with a bid value being determined based on a nature of the bid. For example, if a bidder has received free bids through referral of a third party, the increment could be lower than for paid bids, so a one cent increment could be used for free bids, versus a different incremental amount, such as two cents up to one dollar, for paid bids. [0104] The processing system also determines a new timer value, at step 735. The timer value is used by bidders to monitor the time limit available to the next bid, and is typically determined based on stored rules, which define the time limit based on factors such as the current bid value, a percentage of the property value, and/or total time elapsed. [0105] It will therefore be appreciated that the process returns to step 700, updating the auction timer and current bid value displayed in the bid/timer window 810 and continuing with bids being received until a time limit expires and no further bid is received. In this case at step 740, the processing system 210 determines the current bid to be the winning bid and generates a notification which is transferred to the winning bidder that made the winning bid at step 745. This can be achieved in any suitable manner, but typically involves sending the winning bidder an email, or redirecting them to an alternative webpage. Additionally, other bidders are informed of the ending of the auction, typically by displaying appropriate information to them via the auction webpage. This can also include additional information, WO 2014/161032 PCT/AU2014/000347 -21 such as details of a winner of the completed auction and information regarding one or more upcoming auctions, thereby encouraging participation in further auctions. [0106] The notification typically includes a request for information that is needed in order to proceed with a processing transfer of the option and accordingly at step 750 the bidder provides the required information which the processing system 210 then passes on to any relevant party such as a lawyer. This allows the bidder to contact the lawyer and receive the property option at step 755 with the option being subsequently called allowing the property to be transferred to the winning bidder at step 760. In this regard, the process will typically involve having the option assigned to the winning bidder from the auction operator. The winning bidder can then call the option, with this being used to effect transfer of the property to the wining bidder. During this process, the auction operator arranges to make any necessary payments for the winning bidder, so that in effect the auction operator transfers funds to cover expenses including the contract price of the property, stamp duty, conveyancing fees and the like, to the winning bidder, and then from the winning bidder to the relevant parties. Typically this process is performed via appropriate payment channels, so that in practice no input is required from the winning bidder, so that from the winning bidder's perspective no input is required. [0107] Accordingly, the above described example allows auctions of property to be performed online, as part of a fee paying auction, whilst ensuring legal and financial requirements associated with property transactions are met. 10108] It will be appreciated that in addition to operating the auction, the processing system 210 may provide ancillary related services, such as providing forums for discussion by users and/or bidders, providing information services, access to property information, legal services of the like. [0109] For example, the processing system 210 also allows users to manage their account and an example of a user interface for use in managing an account is shown in Figure 8B. [0110] In this example, the user interface is in the form of a webpage 850 including selection tabs 851, allowing a user to select to view different information including a dashboard, profile, balance, referral and support information. In this example, a balance window 870 is WO 2014/161032 PCT/AU2014/000347 - 22 shown which is used to display details of the user's bids and expenditure, including a history and debits and credits to the user's account. It will be appreciated that this allows a user to view their expenditure and hence monitor their participation in auctions to make sure this does not exceed their available funds. [0111] The webpage 850 also displays an account window 860 including information regarding the user's account, such as details of the user's available bids 861, a buy bids option 862, information regarding available paddles 863, which are needed to join an auction, and a join auction option 864. Thus, it will be appreciated that this provides a mechanism to allow users to monitor their account, including their own bidding history and expenditure, as well as purchase bids and join auctions. [0112] A number of further features of a specific implementation, will now be described. [0113] In one example, users of the website are classified as being one of a different type of user, with information and processes available being customised for each user. In one particular example, the types of user include non members that are able to browse the website, a basic member that can view a personalised web, including site updates, newsletters, and updates on wishlist areas for properties, a full member that can bid on an auction, and an address verified member, with address verification typically only occurring upon winning of an auction. [0114] Thus, for example, when a new user visits the website, they are a non member, and may therefore be provided with limited to browsing basic information, with the user being directed to register in the event that they want to view further information. When a user registers, the new user is encouraged to buy a bid pack for a set amount of money, at which point they enter personal information, including full name, address, credit card details or the like. This allows an identity of the user to be verified and for the user account to be established. [0115] Registered users can logon using their authentication information, or an associated account, such as a Facebook, Twitter, Google account, or the like, with additional information being made available to the user, such as allowing the user to register for a specific auction or the like.

WO 2014/161032 PCT/AU2014/000347 - 23 [0116] In more detail, unregistered users typically see details of property(s) for auction. Information regarding how the site operates can be provided, with the user being encouraged to register with the site and then buy a paddle and/or exchange bids for a paddle, (via a bid pack) to register for an auction. [0117] For basic members, for example that login using a Facebook account (or Twitter, Google, or own email), or similar, they are typically able to view details of properties, as well as the site being personalised, for example displaying basic information regarding the user based on their account and showing a zero balance for buying an auction registration or bids. They also see details of how to register to become a full member, details of how to refer the site to third parties, or the like. [0118] Once logged on full members typically see a personalised version of the site, including property details, account information, including details or available bids or funds, details of auctions for which they are registered, or the like. Full members also see the property displayed differently, indicating that they are able to register for the auction. In the event that full members are registered for auctions, details of these can be displayed including a countdown timer to auction commencement, details of ongoing auctions or the like. In the event that the user is registered for multiple auctions, these can be displayed via respective tabs or windows, allowing the user to rapidly switch between and participate in multiple auctions simultaneously. The user will also have bid options displayed to them, allowing them to make bids. In the event that the user wins an auction, details are displayed to the user, including information required for them to claim the option. Additionally, non winning bidders and/or registered users can be presented with information concerning the winner so registered bidders recognise someone has legitimately won the auction, increasing confidence in bidding in further auctions. [0119] In one example, access to the website can be restricted based on a location of users. For example, in some jurisdictions the process may encounter legal obstacles, in which case access to individuals in those jurisdictions can be implemented using IP address blocking functionality.

WO 2014/161032 PCT/AU2014/000347 - 24 [0120] In one example, bids are purchased as part of packages, making the purchasing of bids easier for the user. Example bid packages include: " Silver $110 - 110 bids * Gold $175 - 180 bids * Platinum $250 - 260 bids [0121] In one example, buying a paddle to register for an auction can be achieved using bids (other than free bids), with the paddle costing 100 bids. Thus, each of the above bid packs provides sufficient bids to allow a user to register for the auction, as well as at least some bids for use during the auction. It will be appreciated however that the above described packs are for the purpose of example only, and that in practice any suitable package of bids could be used. Additionally, bid packs may be associated with incentives, so that, for example, users obtain a greater number of bids if they are paying with cash as opposed to credit cards, or the like. [0122] In one example, the processing system 210 can implement bidding rules for individual users. To achieve this, the user typically defines rules, which are then stored as part of the user account. These rules can then be used by the processing system 210 in assessing whether or not a bid is valid. For example, the user could set a maximum bid limit, in which case when the user makes a bid, the processing system 210 will compare this to the bid limit, and will indicate that the bid is invalid in the event that the bid exceeds the limit. It will be appreciated that a wide range of different bid rules can be defined, including a maximum bid limits, as well as limits on the number of bids, maximum bids within set time frames, or the like. This process facilitates users in allowing them to define rules that are subsequently enforced by the processing system 210, preventing users forgetting about self enforced restrictions, or the like. [0123] Information can be displayed to users and in particular registered bidders in any one of a number of ways. For example, when an auction webpage first launches, this could include a simple animation showing an auction room filling up as registered bidders logon and access the auction webpage.

WO 2014/161032 PCT/AU2014/000347 -25 [0124J In one example, once users have registered to bid on an auction, the user may be required to be access the auction webpage prior to commencement of the auction in order to join in the bidding process. [0125] An example of the parameters associated with an auction are as follows: * Property value $400,000 (variable in admin backend) * Times (x) by factor 1.25 (variable in admin backend) * 5,000 registered bidders in the room a Auction start time 48 hours (variable) + 6pm (variable) of property address local time (variable) - in admin backend * Auction STARTS at which point closed to new bidders! * First 30 minutes (variable) auction timer set to 60 seconds (variable) * Next 30 minutes (variable) auction timer set to 30 seconds (variable) * Additional time periods can be set up as needed 0 From this period onwards, no end (variable) auction timer set to 20 seconds (variable) * Until auction hits 1% of property value (variable), auction drops to 15 seconds (variable) a Until auction hits 2% of property value (variable), auction drops to 10 seconds (variable) o Until auction hits 3% of property value (variable), auction drops to 5 seconds (variable) * Additional value calculations can be set up as needed [01261 An example referral process was described above. However, a number of different referral processes will now be described. [0127 In one example, when a user registers as a basic or full member, they get a referral link, typically in the form of a URL, allowing them to refer a third party. If the third party registers using the link, the third party becomes a referred party, with actions of the referred party earning bids for the member that referred them. For example, when the referred party registers, the referrer can earns a set number of free bids. If the referred party buys bids, the WO 2014/161032 PCT/AU2014/000347 - 26 referrer can get a commission of a number of free bids totalling up to 10% of the number of bids purchased by the referred party. This process provides ongoing benefit to the member making the referral (often referred to as evergreen referral commission), so that this provides an ongoing benefit to the member, encouraging them to refer more users. In one example, free bids can be adapted to expire after an amount of time, such as 30, 60 or 90 days, whereas purchased bids typically do not expire. This can help encourage members to join auctions and use up free bids, increasing user participation. Referring members can be provided with details of referees, allowing them to correspond with referees, such as through a group message or email, encouraging their ongoing participation and thereby allowing the referring member to increase their referral commission. 101001 Other types of referral can include posting on social networking sites, such as Linkedin, Facebook, or the like, with a number of free bids being provided for each post, typically limited to a set number of bids in a give time limit. [0101] It should also be noted that in one example, free bids cannot be used to register for an auction, thereby ensuring that the referral process cannot be used, and ensuring that sufficient revenue is obtained for covering operating costs. However, alternatively, free bids could be used to register for an auction, provided the member has referred a sufficient number of bid purchasing new members. An example of this would be 20 new paying members and the free member can exchange the required number of bids to register for an auction. Despite this, the ability to bid using free bids helps encourage member participation, and encourages users to purchase additional bids, thereby helping raise additional revenue. 10102] Additionally, the processing system 210 can be provided to distribute information to registered users via mechanisms other than webpages, including through emailing or the like. This allows newsletters and other notifications to be provided, as well as to allow upcoming auctions to be advertised. [0103] Accordingly, the above described method and apparatus provide a mechanism for auctioning of properties, such as real-estate or other property interests. The outcome of the auction is not a "Contract of Sale" but rather, is an "Option on the Property" which, when the WO 2014/161032 PCT/AU2014/000347 - 27 Auction is completed is assigned to the auction winner. The option can then be subsequently called, so that the property is then transferred to the auction winner. [0104] Thus, the winner of the auction ultimately receives a contract of sale at the "Industry correct" valuation of $380,000, the vendor is paid the full valuation amount, stamp duty is paid on the full valuation by the auction operator, thereby obviating stamp duty requirements on the winner, with costs of legal requirements also being met by the operator. 10105] This avoids the problems associated with auctioning a property for an amount other than the actual value of the property, which can in turn adversely effect financial and legal aspects of property sales, such as stamp duty revenue, real estate industry valuation processes, or the like. Valuations of other remaining properties in the area are unaffected, and the purchased property, having being purchased at full price, is unlikely to suffer from a reduced ongoing value. [0106] Throughout this specification and claims which follow, unless the context requires otherwise, the word "comprise", and variations such as "comprises" or "comprising", will be understood to imply the inclusion of a stated integer or group of integers or steps but not the exclusion of any other integer or group of integers. [0107] Persons skilled in the art will appreciate that numerous variations and modifications will become apparent. All such variations and modifications which become apparent to persons skilled in the art, should be considered to fall within the spirit and scope that the invention broadly appearing before described.

Claims

THE CLAIMS DEFINING THE INVENTION ARE AS FOLLOWS:

1) Apparatus for performing an auction of a property in a networked computer environment, the apparatus including a processing system that:

a) receives a bid from an bidder via a communications network;

b) increases a current bid value in accordance with the bid;

c) determines if the bid is a winning bid; and,

d) for a winning bid, generates a notification for the winning bidder, the notification allowing the winning bidder to receive an option on the property, the option allowing the winning bidder to receive ownership of the property.

2) Apparatus according to claim 1, wherein the processing system, upon receipt of a bid, uses a timer to determine if a time limit expires before another bid is received.

3) Apparatus according to claim 2, wherein the processing system determines the time limit based on at least one of:

a) a current bid value; and,

b) an auction time.

4) Apparatus according to any one of the claims 1 to 3, wherein, upon receiving a bid, the processing system:

a) determines if the bid is a valid bid; and,

b) processes the bid if the bid is a valid bid.

5) Apparatus according to claim 4, wherein the processing system determines a bid is a valid bid by:

a) confirming the bidder is registered to bid; and,

b) confirming the bidder has available bids.

6) Apparatus according to any one the claims 1 to 5, wherein for a valid bid, the processing system:

a) updates a number of available bids for the bidder; and,

b) updates the current bid value.

7) Apparatus according to any one of the claims 1 to 6, wherein the processing system: a) receives an auction registration request;

b) determines if the auction is open; and,

c) registers the user as a bidder at least partially in response to a successful determination. 8) Apparatus according to any one of the claims 1 to 7, wherein the processing system: a) receives an auction registration request from a user;

b) determines if the user has sufficient funds; and,

c) in response to a successful determination, at least one of:

i) registers the user as a bidder; and,

ii) updates a user account.

9) Apparatus according to any one of the claims 1 to 8, wherein the processing system provides a registration notification to a user registered as a bidder.

10) Apparatus according to claim 9, wherein the registration notification includes an indication allowing the user to refer a third party to the auction.

11) Apparatus according to any one of the claims 1 to 10, wherein the processing system: a) compares a number of registered bidders to a bidder threshold; and,

b) commences the auction at least partially in response to a successful comparison.

12) Apparatus according to claim 11, wherein the processing system determines the bidder threshold at least partially in accordance with a property value.

13) Apparatus according to claim 11 or claim 12, wherein, the processing system:

a) provides an auction commencement notification to registered bidders, the commencement notification including an indication of a commencement time; and, b) commences the auction at the commencement time.

14) Apparatus according to any one of the claims 1 to 13, wherein for a winning bidder associated with a winning bid, the processing system:

a) determines required information relating to the winning bidder; and,

b) uses the required information to arrange transfer of the option.

15) Apparatus according to any one of the claims 1 to 14, wherein the processing system: a) generates a representation indicative of auction details, including at least one of a current bid value and a timer; and,

b) transfers the representation to the computer system via the communications network.

16) A method of auctioning a property in a networked computer environment, the method including:

a) receiving bid from bidders via a communications network;

b) determining a winning bid; and, c) providing an option on the property to a bidder associated with the winning bid, the option allowing the winning bidder to receive ownership of the property.

17) A method according to claim 16, wherein the method includes determining a winning bid based on a current bid when a time limit expires.

18) A method according to claim 17, wherein the time limit depends on at least one of: a) a current bid value; and,

b) an auction time.