GENERAL CONDITIONS OF SALE
INTRODUCTION
The Common Auction Conditions have been produced for real estate auctions in
England and Wales to set a common standard across the industry. They are in three
sections:
Glossary
The glossary gives special meanings to certain words used in both sets of conditions.
Auction Conduct Conditions
The Auction Conduct Conditions govern the relationship between the auctioneer and
anyone who has a catalogue, or who attends or bids at the auction. They cannot be
changed without the auctioneer’s agreement.
We recommend that these conditions are set out in a two-part notice to bidders in
the auction catalogue, part one containing advisory material – which auctioneers can
tailor to their needs – and part two the auction conduct conditions.
Sale Conditions
The Sale Conditions govern the agreement between each seller and buyer. They
include general conditions of sale and template forms of special conditions of sale,
tenancy and arrears schedules and a sale memorandum.
Important notice
A prudent buyer will, before bidding for a lot at an auction:
• Take professional advice from a conveyancer and, in appropriate cases, a chartered
surveyor and an accountant;
• Read the conditions;
• Inspect the lot;
• Carry out usual searches and make usual enquiries;
• Check the content of all available leases and other documents relating to the lot;
• Check that what is said about the lot in the catalogue is accurate;
• Have finance available for the deposit and purchase price;
• Check whether VAT registration and election is advisable;
The conditions assume that the buyer has acted like a prudent buyer.
If you choose to buy a lot without taking these normal precautions you do
so at your own risk
GLOSSARY
This glossary applies to the auction conduct conditions and the sale conditions.
Wherever it makes sense:
• singular words can be read as plurals, and plurals as singular words;
• a “person” includes a corporate body;
• words of one gender include the other genders;
• references to legislation are to that legislation as it may have been modified or re-
enacted by the date of the auction or the contract date (as applicable); and
• where the following words printed in bold black type appear in bold blue type they
have the specified meanings.
Actual completion date
The date when completion takes place or is treated as taking place for the purposes
of apportionment and calculating interest.
Addendum
An amendment or addition to the conditions or to the particulars or to both whether
contained in a supplement to the catalogue, a written notice from the auctioneers or
an oral announcement at the auction.
Agreed completion date
Subject to condition G9.3:
(a) the date specified in the special conditions; or
(b) if no date is specified, 20 business days after the contract date;
but if that date is not a business day the first subsequent business day.
Approved financial institution
Any bank or building society that has signed up to the Banking Code or Business
Banking Code or is otherwise acceptable to the auctioneers.
Arrears
Arrears of rent and other sums due under the tenancies and still outstanding on the
actual completion date.
Arrears schedule
The arrears schedule (if any) forming part of the special conditions.
Auction
The auction advertised in the catalogue.
Auction conduct conditions
The conditions so headed, including any extra auction conduct conditions.
Auctioneers
The auctioneers at the auction.
Business day
Any day except (a) a Saturday or a Sunday; (b) a bank holiday in England and Wales;
or (c) Good Friday or Christmas Day.
Buyer
The person who agrees to buy the lot or, if applicable, that person’s personal
representatives: if two or more are jointly the buyer their obligations can be enforced
against them jointly or against each of them separately.
Catalogue
The catalogue to which the conditions refer including any supplement to it.
Completion
Unless otherwise agreed between seller and buyer (or their conveyancers) the
occasion when both seller and buyer have complied with their obligations under
the contract and the balance of the price is unconditionally received in the seller’s
conveyancer’s client account.
Condition
One of the auction conduct conditions or sales conditions
Contract
The contract by which the seller agrees to sell and the buyer agrees to buy the lot.
Contract date
The date of the auction or, if the lot is not sold at the auction:
(a) the date of the sale memorandum signed by both the seller and buyer; or
(b) if contracts are exchanged, the date of exchange. If exchange is not effected
in person or by an irrevocable agreement to exchange made by telephone, fax or
electronic mail the date of exchange is the date on which both parts have been signed
and posted or otherwise placed beyond normal retrieval.
Documents
Documents of title (including, if title is registered, the entries on the register and the
title plan) and other documents listed or referred to in the special conditions relating
to the lot.
Financial charge
A charge to secure a loan or other financial indebtness (not including a rentcharge).
General conditions
That part of the sale conditions so headed, including any extra general conditions.
Interest rate
If not specified in the special conditions, 4% above the base rate from time to time of
Barclays Bank plc. (The interest rate will also apply to judgment debts, if applicable.)
Lot
Each separate property described in the catalogue or (as the case may be) the
property that the seller has agreed to sell and the buyer to buy (including chattels,
if any).
Old arrears
Arrears due under any of the tenancies that are not “new tenancies” as defined by the
Landlord and Tenant (Covenants) Act 1995.
Particulars
The section of the catalogue that contains descriptions of each lot (as varied by any
addendum).
Practitioner
An insolvency practitioner for the purposes of the Insolvency Act 1986 (or, in relation
to jurisdictions outside the United Kingdom, any similar official).
Price
The price that the buyer agrees to pay for the lot.
Ready to complete
Ready, willing and able to complete: if completion would enable the seller to discharge
all financial charges secured on the lot that have to be discharged by completion,
then those outstanding financial charges do not prevent the seller from being ready
to complete.
Sale conditions
The general conditions as varied by any special conditions or addendum.
Sale memorandum
The form so headed (whether or not set out in the catalogue) in which the terms of
the contract for the sale of the lot are recorded.
Seller
The person selling the lot. If two or more are jointly the seller their obligations can be
enforced against them jointly or against each of them separately.
Special conditions
Those of the sale conditions so headed that relate to the lot.
Tenancies
Tenancies, leases, licences to occupy and agreements for lease and any documents
varying or supplemental to them.
Tenancy schedule
The tenancy schedule (if any) forming part of the special conditions.
Transfer
Transfer includes a conveyance or assignment (and “to transfer” includes “to convey”
or “to assign”).
TUPE
The Transfer of Undertakings (Protection of Employment) Regulations 2006.
VAT
Value Added Tax or other tax of a similar nature.
VAT option
An option to tax.
We (and us and our)
The auctioneers.
You (and your)
Someone who has a copy of the catalogue or who attends or bids at the auction,
whether or not a buyer.
We have used the RICS Common Auction Conditions (3rd Edition) and acknowledge that they are reproduced with the consent of the Royal Institution of
Chartered Surveyors.
