Auctioneering

• Can’t agree on pricing
• Lease not signed for the subject property
• If it requires a lot of legal due diligence
• Special purchaser
• Bad time to sell/poor market conditions
• Size of asset more suitable for PT sale

45 days

• Real estate agency and brokerage, RICS professional statement, global, (3rd edition)
• UK commercial real estate agency, RICS professional statement, (1st edition)
• UK residential real estate agency, RICS professional statement, (6th edition)
• Bribery Act 2010 • Equality Act 2010
• Estate Agents Act 1979 • Consumer Protection from Unfair Trading Regulations 2008 (CPRs) (when dealing with consumers)
• Business Protection from Misleading Marketing Regulations 2008 (BPRs) (when dealing with businesses)
• The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

They can be an important guide for auctioneers in their relationship with the seller and the buyer/bidders and in the auctioneer’s powers and duties from the point of the instruction until its completion.

• Deposit - 10% deposit to be paid on the day. The buyer can rescind the contract if this does not clear
• Info on serving a notice to complete

Auctioneers right to refuse bids

Requirement to check info in marketing particulars

• A glossary
• General conditions of sale
• Special conditions of sale provided by the seller’s conveyancer
• Memorandum of sale

• The manner in which the auctioneer may accept deposits, for example, by cheque, banker’s draft, electronic transfer or debit or credit cards
• Whether the deposit will be held as stakeholder or agent for the seller and to whom any interest earned on the deposit will accrue
• Confirmation to whom the balance of the deposit will be sent
• The auctioneer’s procedures for checking the identity of the bidder.

• There is no prohibition against holding an auction on the property and that local authority regulations can be observed
• The hirer has no objections to the venue being open to the public (as a public auction will be held at the property) and that the hirer of the auction room has insurance cover
• The permitted size of the auction room will accommodate the anticipated number of bidders and, in particular, that fire regulations will be complied with.

The Sale of Land by Auction Act 1867 (s. 5)

• Call client
• Notify buyer of error
• The vendor can then either accept the bid, reoffer the property or ask the buyer to make up the difference

Auctioneers decision who they go with

• Memorandum of sale
• Addendum
• Special conditions of sale
• Particulars
• Common Auction Condition 4th Edition
• Auctioneers Notices Part 1 and 2

• Speak to buyer and client
• Buyer in breach of contract
• Request for payment again
• If not paid by completion period – serve notice to complete
• Rescind contract
• Can sue for loss of value

• Guide is the minimum price at which the seller is prepared to sell at the date of publication. If a range of prices is given, the minimum acceptable price should not exceed the lower end of the range.
• Reserve is confidential and is the lowest figure it can legally sell for.

• S5 housing Act 1995
• If resi is 50% or more of building
• Must be 2 or more resi tenants

Yes, as stated in the brochure

section 7 of that Act remains in force (requirement for the auctioneer to make clear details of their name and address for all consumers during the auction itself — failure to do so is a fine of £20).

• This act makes it a criminal offence for buyers to give an inducement or reward to any person for abstaining from bidding at a sale by auction.
• It is also an offence for buyers to accept the inducement or reward.

• Legal responsibilities of an auctioneer - AML check and H&S compliance
• Pre Auction Actions - Agree TOG, ensuring legal docs are available, choosing a venue
• Advice on setting a reserve
• Preparation of an auction catalogue and online marketing
• Running the auction
• Post auction actions

• I am aware of the process however it is not something I am familiar.
• A party agrees to buy a property at certain price. If the property sells in excess of this figure than there is a agreement payment to the underwriter

• Pros:
• Speed of sale
• Certainty of sale
• Good when high interest
• Public accountability - good for public bodies (transparent)
• Mass marketing
• Seller dictates terms of contract
• Less time for due diligence e.g. planning approval

• Cons:
• Lack of confidentiality
• Cannot choose purchaser
• Costs associated with market
• If property does not sell can tarnish asset

Provides info on any changes to marketing particulars or specifics of a sale

It is contractual

• Address
• Date
• Price
• Deposit
• Purchase
• Solicitors Details
• Seller
• Signatures

• Permitted by the Sale of Land by Action Act.
• Auctioneer is permitted to bid on behalf of the seller in a manor that is proper.
• Auctioneers Notices state that this is permitted also.

• Special conditions of sale may vary
• Particulars will be specific to the individual property

• Priced the property based on comparables
• Attracted good levels of interest, just needed slightly more time to find the buyer at the right level.

• We arrive at a value believe the property can achieve
• Apply a slight discount to generate competitive bidding and achieve a higher price
• As the contract is unconditional investors may pay less.
• Price low to achieve high

2%

Costs for marketing and cost of running the auction

Disbursements

• There is room for negotiation on higher value lots
• As long as work is profitable
• If fee is reduced, level of service provided should be reduced

• Property Address
• Client details
• Clients Solicitor
• Auction Date
• Fee
• Agency bases
• Selling rights
• Terms of how auction works
• CHP
• PII

• No, unethical.
• Always provide honest advice.