This type of auction is also called conditional auction. It is auction after the acceptance of an offer or during the close of the auction, where the buyer places a non-refundable reservation fee or deposit to secure the property as will be instructed by the seller and stated in the terms and conditions. The buyer is given 28 days to complete the transaction and aims at exchanging contracts within 28 days of the draft contract being received by the buyer's solicitor.
Each property is advertised with a start bid, which is the recommended time at which the bidding should open. Potential buyers must not rely on start bid as a valuation because in most cases, the reserve (not more than 10% above the starting price) is above this level.
It is the minimum price acceptable by a seller for a subject property and, above this price, the property will remain unsold. Reserve price is a private agreement between the vendor and the auctioneer and, it is not published. It is usually not more than 10% of the starting bid. The reserve and the start bid are subject to change.
BUYERS ADMINISTRATION FEE
Few of our properties are subject to buyers administration fee and if you are interested in a particular lot, you are advised to speak to a team member before you bid and clearly read and understand the terms and conditions attached to the property. Please note that the buyers administration fee is received on a non-refundable basis and in line to the final negotiated
selling price. If there is a violation in the terms of the agreement as a result of sale fall through by the vendor, the buyers administration fee becomes repayable to the buyer in full.
It is an agreement between Auction Properties UK and the buyer which clearly states the terms and conditions which the buyer need to meet. The sale will not be instructed and the Memorandum of Sale will not be sent out until the buyer signs the online registration form.
You will need to speak with an auction team member if you wish to place a pre-auction offer. If a property has entered into a live online auction and the pre auction offer is accepted by the seller, the property will be disabled on the website. Then you will have 28 days for completion.
EXCHANGE OF CONTRACTS
The buyer and the seller sign the sale contract here but, the purchase is not complete at this point. It is usually the point at which the two parties are legally obliged to complete the transaction.
It is the point at which the purchase becomes final and prices are made in full by the buyer's solicitor which the seller's solicitor receives. Completion can also take place during the exchange of contracts, usually a week or so later. The seller must vacate the property on this date and the keys released to the buyer, who will move into the property.
For more clarity or questions, feel free to contact us by email or telephone to speak to a member of the auction team.