Auction Terms

Addendum
An addition or alteration to the conditions of the contract. These are usually in the legal pack but can also be announced at the auction itself.

Auction
Public sale where property is sold to the highest bidder over the reserve price.

Auction Catalogue
This provides a description of the property, details about viewings, the solicitors acting for the seller and any conditions relating to the sale. These are prepared by the auctioneer.

Bid
An offer to buy a property at a specified price.

Completion Date
The date when completion of the purchase or sale takes place and the balance of the purchase price is sent to the sellers solicitors. Usually 21-28 days after the auction.

Deposit
If you are the successful bidder you will need to pay over the deposit at the auction of 10% of the purchase price.

Exchanging Contracts
If you are the successful bidder at the auction sale, and the hammer falls you will then be asked to sign and exchange contracts and pay over a deposit of 10%.

Finances
These must be organised before you bid at auction as there is only a short period of time after the auction before completion takes place, and you will be required to pay interest to the seller if the matter does not complete on the completion date.

Guide Price
This gives an indication of the price that the property is expected to sell for and what the seller is hoping to achieve.

Hammer
Once if falls and your bid has been accepted you are unable to change your mind without financial loss.

Interest
If the matter does not complete on the completion date you will be charged interest on the outstanding monies until completion does take place. The seller can serve notice specifying the number of days he will wait for the purchase to complete. If that timescale is not met you could loose your deposit.

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Legal Pack
Available from the sellers solicitors and contains copies of the searches and legal papers. They can be obtained in advance of the auction and will be available on the day of the auction.

Legal Advice
It is essential that you take legal advice before going ahead with the purchase. You must be aware that you buy subject to anything affecting the property, the terms of the contract, the search results, and the physical condition of the property.

Lot
Each separate property is described as a lot.

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Proxy Bid
The auctioneers can undertake bidding on behalf of buyers who are unable to attend the auction in person. You will need to complete a form telling the auctioneer the maximum amount you will pay for the property. You then send this form to the auctioneer before the auction with a cheque for the deposit.

Questions
These all need to be dealt with before you bid there is no requirement of the seller to deal with any enquiries after the property has been successfully auctioned.

Reserve
A reserve price is the lowest price the seller will accept. This is usually agreed between the seller and the auctioneer and is confidential and will not be disclosed to any interested parties.

Searches
The results of standard searches will be included in the legal pack, however depending on the type of property it may be advisable to carry out further searches.

Telephone Bid
A member of staff from the auctioneers telephones you to bid on particular lots and relays your bids to the auctioneer during the course of those lots.

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Withdrawal
If the property is sold before the auction or the bidding does not reach the reserve price the auctioneer will withdraw the property from the auction.

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