What you need to know - notice to prospective buyers – Buying at auction is a simpler process than you may think, but you need to be well prepared for auction day.
It is important to appreciate that if you bid at an auction, and your bid is successful you will have entered into a binding contract to purchase the lot you were bidding for.
When you have decided which property interests you, we suggest the following course of action:
View the Property
Arrangements can be made through the local selling agents, as detailed in this catalogue.
Conditions of Sale
Each lot is sold subject to conditions of sale. These are in two parts (i) the General Conditions which are printed at the end of this catalogue. The sections headed "Glossary" and "Conduct Of The Auction" form part of these General Conditions; and (ii) the Special Conditions which apply separately to each lot. You should seek legal advice on the meaning of all these conditions of sale.
Advise your Conveyancer
Pass a copy of this catalogue to your conveyancer, who can then begin to make the necessary legal enquiries. Give plenty of time, as you will be expected to enter into a legally binding contract if your bid is successful at the auction.
Arranging Finance
Since you will enter into a binding contract at the fall of the hammer and pay a substantial non-refundable deposit, it is essential that all financial arrangements are made well in advance. This is particularly important if you need to arrange mortgage finance. If this is the case it must be sorted out well before auction day. You will normally be expected to complete the purchase and pay the balance of the purchase price between 14 and 28 days after the auction date.
Surveyors Report
If you bid for a property, it is assumed that you have made all the necessary enquiries beforehand. After the fall of the hammer it is too late for second thoughts. If you have any doubts or concerns, do not bid for the property. Arrange any surveys well in advance. The local agent holding the key will be pleased to cooperate with your surveyor.
Insurance
Once a property has been sold and contracts exchanged, it will become your responsibility for insurance cover. Make sure you have taken out the necessary cover for the period between the auction and the legal completion date. Your conveyancer will advise you of your insurance obligations.
Legal Packs
We can usually provide legal packs for any of the lots displayed in this catalogue. The legal pack will consist of the Special Conditions of Sale, a copy of the local search (if and when available), a copy of the office copies of the registers and filed plan, plus a copy of any lease affecting the property. If you wish to purchase a legal pack at a cost of £20 please contact the National Auction Division on 01773 769971, quoting the lot number and your credit/debit card details. The documents will then be photocopied and forwarded to you by first class post.
Legal packs may also be inspected at the offices of the National Auction Division, by appointment, or in the Sale Room prior to the auction.
We want your visit to the auction to be an enjoyable and productive experience. To ensure your day runs smoothly take a minute to read the following advice for prospective buyers.
Arrive Early
It is best to allow plenty of time before bidding on your particular lot begins. You need to complete the Bidding Registration Form in this catalogue and hand this in at the registration desk before the auction starts so that you can receive your bidding number.
It is possible that there may be some last minute alterations and these will be printed on a sheet and available prior to the commencement of the auction.
Bidding
Be positive. Signal your bid by definite movements, for instance the raising of your hand or catalogue. Contrary to popular belief ‘secret bidding and vague twitching of the eyebrows’ have no place in a real auction. If you have any doubts about bidding then speak to your conveyancer who can arrange to do this for you. If you are bidding on behalf of a company (including a sole trader), you will be required to provide a letter on company headed paper, signed by an official of the company, which confirms that you are authorised to act on its behalf. When the Auctioneer announces “Going for the first time, going for the second time, going for the third and last time - sold” this is the final stage of the sale process and you must not leave it too late if you want to bid.
Success!
Personal Information and Your Identity
Individuals who successfully bid for a property at auction will be required to provide a few personal details and evidence to confirm both their name and address.
For individuals present at the auction:
A Halifax Auctions colleague will be required to collect and record some personal details and evidence of your name and address. Please refer to the leaflet 'About You – Personal Information and Your Identity' available in HBOS branches. This leaflet provides details of what personal details will be required and which documents may be accepted to evidence name and address. (Please note you cannot use the same document to confirm both your name and address).
For individuals who cannot be present at the auction, and want to bid by proxy or telephone:
Please call Halifax Auctions on 01773 769971. Arrangements will then be made for you to call into a HBOS outlet to provide the personal details and evidence of name and address, we will then forward the appropriate bidding form to you.
Individuals representing companies:
Individuals who are representing a company will also be required to provide personal details and evidence of their name and address as detailed above. In addition they will be required to produce a letter on Company Headed paper confirm they have the company's authority to bid.
Successful bidders will be required to pay a 10% deposit (minimum £2000) on the day of the auction. For security reasons, HEA Auctions will take payment by, cheque, bankers draft, credit card or debit card. Purchasers should note that all cheques (which should be made payable to Halifax Estate Agents) are presented for Special Clearance on the day of the auction. A transaction fee of £25 (inc. VAT) will be charged for paying a deposit by credit card, which is payable at the time of the transaction. Debit cards do not incur a transaction fee. Each successful bidder will also be required to pay the auctioneer a separate, non-refundable administration fee of £250 (which includes VAT) . This fee is payable on exchange of contracts, so you will need to pay this at the same time as the deposit. You will also be asked to provide details of the conveyancer who will be acting for you. Our staff will arrange for the Memorandum of Sale to be completed and you will then be asked to sign the contract papers. You will be given your part of the contract to take to your conveyancer and completion of the sale will normally take place between 14 and 28 days later. You are not entitled to receive the keys to the property until completion has taken place.
Withdrawn Lots
If the property you are interested in is withdrawn at the sale because it failed to reach its reserve price, please ask to speak to one of our staff, who will register your interest with the seller.
Unable to attend on Auction Day
In the event that you are unable to attend on the day, it may be possible to bid by proxy. Full details can be obtained from Halifax Auctions, details on the back cover of this catalogue. All bidders who cannot attend on the day must send in the fully completed bidding form, deposit monies and separate administration fee, to arrive at Halifax Auctions at least two working days prior to the sale. Late registrations cannot be accepted.
Conclusion
We hope that these notes will have removed any fears you may have about bidding at Auction. If you require clarification on any point do not hesitate to contact us.