“1. Can I submit an offer before auction?”
Yes, however the offer submitted must be on standard auction terms and conditions.
“2. Can I get a bond for real estate purchased on auction?”
Yes. However, auctions are non-suspensive transactions and as such your offer at an auction sale is NOT subject to your obtaining a bond. Should you wish to obtain a bond this is acceptable, however it is worth repeating that the sale is not subject to your obtaining finance. If, for any reason you are not granted a bond, or do not qualify for the amount to which you have bid, you will still be held liable and responsible to fulfil all your obligations in terms of the agreement signed at the auction.
“3. When must I pay the deposit and Auctioneer’s Commission?”
The deposit and Auctioneer’s Commission are payable immediately on the fall of the hammer, regardless of whether the sale is subject to confirmation. These monies are payable upfront and immediately, and cannot form part of any financing that you may have applied for.
“4. When is the balance of the purchase price due?”
The balance of the bid price is due on registration of transfer in the case of a Real Estate purchase. In the case of movable assets, the balance is payable immediately on conclusion of the auction and no goods may be removed until full payment is received for them.
“5. Can I bid on behalf of another person or entity?”
It is possible to bid on behalf of another person or entity. However, the person who bids on behalf of any other entity will be required to sign personal surety on the auction day. Should the person or entity or any other nomination not be able, for whatever reason, to take transfer of the property, then the person who bids at the auction will be deemed the Purchaser and will become responsible for all the terms of the agreement of sale.
For more information download our Proxy Bid document.
“6. Are there reserve prices at auctions?”
Lots at auctions are sold with undisclosed reserves, and are subject to confirmation by the Seller within a certain time period, more often than not on the same day as the auction takes place. Lots at Sales in Execution are sold on the fall of the hammer without any confirmation period, and with no reserve. When a lot is sold subject to confirmation, this is not a reserve, but merely a formality to protect sellers and creditors from having secured assets being sold well below their market value.
“7. Do I need to register in order to bid on an auction, or can I just bid?”
Yes, you do need to register in order to bid. You will be required to fill in a Registration Form and you will be allocated an exclusive Bidder’s number. The auctioneer will not accept a bid from you unless you produce your Bid Card number.
*In the future You will be able to pre-register for auction events on our website.
“8. Do I need to pay a deposit in order to register to bid?”
Yes. You are required to pay a refundable deposit in order to register at an auction. The deposit amount required for registration will appear in the auction advertisements. The registration deposit is always refundable to you.
“9. What happens if I default on the sale?”
The seller will reserve his/her right to take the necessary legal action against you should you go be in breach of contract or fail to fulfill any of your obligations in terms of the Conditions of Sale. They can exercise their various options, which will be stipulated in the Conditions of Sale. Ultimately you will be held liable and responsible to fulfill your obligations. Should you still remain in breach of contract, all monies already paid by you to the auctioneer and/or seller will be forfeited as “rouwkoop” (pre-estimated damages). It is very serious to go into breach after an auction and legal action will be taken. Therefore if you harbour any uncertainty, it is better not to bid.
“10. What happens if an item is sold to me “STC” (Subject to Confirmation)?”
Items sold STC are usually encumbered to a secured creditor and confirmation will be obtained within the time frame specified at the auction. During this period you are held bound by your offer and will be advised by an Auctions staff member as to whether the offer is acceptable or not. Payment is required immediately after the auction sale nonetheless. Should the sale for any reason not be confirmed you will be immediately refunded.
“11. When do the movable assets or real estate become my risk?”
The assets become your risk from the date of possession as stipulated in the Conditions of Sale. If possession is given on confirmation or the fall of the hammer then you will be responsible for the assets and be required to arrange suitable insurance and storage from that date
“12. What recourse do I have if my purchase is not to my satisfaction after the auction?”
Purchasers bidding on items at an auction acknowledge that they have familiarized themselves with the items for which they are bidding . All items are sold “voetstoots” and the bids are made in public. Therefore, there is no recourse if you have made a mistake and bid for the wrong items or discover later that you are not happy with your purchase. Once you have bid, you are bound and you will subsequently be required to pay in full for these assets and remove them from the venue.