AUCTION CONDUCT CONDITIONS
A1
Introduction
A1.1 Words in bold blue type have special meanings, which are defined in the
Glossary.
A1.2 The catalogue is issued only on the basis that you accept these auction
conduct conditions. They govern our relationship with you and cannot be
disapplied or varied by the sale conditions (even by a condition purporting to
replace the whole of the Common Auction Conditions). They can be varied
only if we agree.
A2
Our role
A2.1 As agents for each seller we have authority to:
(a) prepare the catalogue from information supplied by or on behalf of each
seller;
(b) offer each lot for sale;
(c) sell each lot;
(d) receive and hold deposits;
(e) sign each sale memorandum; and
(f) treat a contract as repudiated if the buyer fails to sign a sale memorandum
or pay a deposit as required by these auction conduct conditions.
A2.2 Our decision on the conduct of the auction is final.
A2.3 We may cancel the auction, or alter the order in which lots are offered for
sale. We may also combine or divide lots. A lot may be sold or withdrawn
from sale prior to the auction.
A2.4 You acknowledge that to the extent permitted by law we owe you no duty of
care and you have no claim against us for any loss.
A3
Bidding and reserve prices
A3.1 All bids are to be made in pounds sterling exclusive of any applicable VAT.
A3.2 We may refuse to accept a bid. We do not have to explain why.
A3.3 If there is a dispute over bidding we are entitled to resolve it, and our decision
is final.
A3.4 Unless stated otherwise each lot is subject to a reserve price (which may be
fixed just before the lot is offered for sale). If no bid equals or exceeds that
reserve price the lot will be withdrawn from the auction.
A3.5 Where there is a reserve price the seller may bid (or ask us or another agent
to bid on the seller’s behalf) up to the reserve price but may not make a bid
equal to or exceeding the reserve price. You accept that it is possible that all
bids up to the reserve price are bids made by or on behalf of the seller.
A3.6 Where a guide price (or range of prices) is given that guide is the minimum
price at which, or range of prices within which, the seller might be prepared
to sell at the date of the guide price. But guide prices may change. The last
published guide price will normally be at or above any reserve price, but
not always – as the seller may fix the final reserve price just before bidding
commences.
A4
The particulars and other information
A4.1 We have taken reasonable care to prepare particulars that correctly describe
each lot. The particulars are based on information supplied by or on behalf of
the seller. You need to check that the information in the particulars is correct.
A4.2 If the special conditions do not contain a description of the lot, or simply refer
to the relevant lot number, you take the risk that the description contained
in the particulars is incomplete or inaccurate, as the particulars have not
been prepared by a conveyancer and are not intended to form part of a legal
contract.
A4.3 The particulars and the sale conditions may change prior to the auction and
it is your responsibility to check that you have the correct versions.
A4.4 If we provide information, or a copy of a document, provided by others we
do so only on the basis that we are not responsible for the accuracy of that
information or document.
A5
The contract
A5.1 A successful bid is one we accept as such (normally on the fall of the
hammer). This condition A5 applies to you if you make the successful bid for
a lot.
A5.2 You are obliged to buy the lot on the terms of the sale memorandum at the
price you bid plus VAT (if applicable).
A5.3 You must before leaving the auction:
(a) provide all information we reasonably need from you to enable us to
complete the sale memorandum (including proof of your identity if required
by us);
(b) sign the completed sale memorandum; and
(c) pay the deposit.
A5.4 If you do not we may either:
(a) as agent for the seller treat that failure as your repudiation of the contract
and offer the lot for sale again: the seller may then have a claim against you
for breach of contract; or
(b) sign the sale memorandum on your behalf.
A5.5 The deposit:
(a) is to be held as stakeholder where VAT would be chargeable on the
deposit were it to be held as agent for the seller, but otherwise is to be held
as stated in the sale conditions; and
(b) must be paid in pounds sterling by cheque or by bankers’ draft made
payable to us on an approved financial institution. The extra auction conduct
conditions may state if we accept any other form of payment.
A5.6 We may retain the sale memorandum signed by or on behalf of the seller until
the deposit has been received in cleared funds.
A5.7 If the buyer does not comply with its obligations under the contract then:
(a) you are personally liable to buy the lot even if you are acting as an agent;
and
(b) you must indemnify the seller in respect of any loss the seller incurs as a
result of the buyer’s default.
A5.8 Where the buyer is a company you warrant that the buyer is properly
constituted and able to buy the lot.
A6
Extra Auction Conduct Conditions
A6.1 Despite any special condition to the contrary the minimum deposit we accept
is £2,000 (or the total price, if less). A special condition may, however,
require a higher minimum deposit.
Words in bold blue type have special meanings, which are defined in the
Glossary.
The general conditions (including any extra general conditions) apply to the
contract except to the extent that they are varied by special conditions or by
an addendum.
G1.
The lot
G1.1 The lot (including any rights to be granted or reserved, and any exclusions
from it) is described in the special conditions, or if not so described the lot is
that referred to in the sale memorandum.
G1.2 The lot is sold subject to any tenancies disclosed by the special conditions,
but otherwise with vacant possession on completion.
G1.3 The lot is sold subject to all matters contained or referred to in the documents,
but excluding any financial charges: these the seller must discharge on or
before completion.
G1.4 The lot is also sold subject to such of the following as may affect it, whether
they arise before or after the contract date and whether or not they are
disclosed by the seller or are apparent from inspection of the lot or from the
documents:
(a) matters registered or capable of registration as local land charges;
(b) matters registered or capable of registration by any competent authority
or under the provisions of any statute;
(c) notices, orders, demands, proposals and requirements of any competent
authority;
(d) charges, notices, orders, restrictions, agreements and other matters
relating to town and country planning, highways or public health;
(e) rights, easements, quasi-easements, and wayleaves;
(f) outgoings and other liabilities;
(g) any interest which overrides, within the meaning of the Land Registration
Act 2002;
(h) matters that ought to be disclosed by the searches and enquiries a
prudent buyer would make, whether or not the buyer has made them; and
(i) anything the seller does not and could not reasonably know about.
G1.5 Where anything subject to which the lot is sold would expose the seller to
liability the buyer is to comply with it and indemnify the seller against that
liability.
G1.6 The seller must notify the buyer of any notices, orders, demands, proposals
and requirements of any competent authority of which it learns after the
contract date but the buyer must comply with them and keep the seller
indemnified.
G1.7 The lot does not include any tenant’s or trade fixtures or fittings.
G1.8 Where chattels are included in the lot the buyer takes them as they are at
completion and the seller is not liable if they are not fit for use.
G1.9 The buyer buys with full knowledge of:
(a) the documents, whether or not the buyer has read them; and
(b) the physical condition of the lot and what could reasonably be discovered
on inspection of it, whether or not the buyer has inspected it.
G1.10 The buyer is not to rely on the information contained in the particulars but
may rely on the seller’s conveyancer’s written replies to preliminary enquiries
to the extent stated in those replies.
G2.
Deposit
G2.1 The amount of the deposit is the greater of:
(a) any minimum deposit stated in the auction conduct conditions (or the
total price, if this is less than that minimum); and
(b) 10% of the price (exclusive of any VAT on the price).
G2.2 The deposit
(a) must be paid in pounds sterling by cheque or banker’s draft drawn on an
approved financial institution (or by any other means of payment that the
auctioneers may accept); and
(b) is to be held as stakeholder unless the auction conduct conditions provide
that it is to be held as agent for the seller.
G2.3 Where the auctioneers hold the deposit as stakeholder they are authorised
to release it (and interest on it if applicable) to the seller on completion or,
if completion does not take place, to the person entitled to it under the sale
conditions.
G2.4 If a cheque for all or part of the deposit is not cleared on first presentation
the seller may treat the contract as at an end and bring a claim against the
buyer for breach of contract.
G2.5 Interest earned on the deposit belongs to the seller unless the sale conditions
provide otherwise.
G3. Between contract and completion
G3.1 Unless the special conditions state otherwise, the seller is to insure the lot
from and including the contract date to completion and:
(a) produce to the buyer on request all relevant insurance details;
(b) pay the premiums when due;
(c) if the buyer so requests, and pays any additional premium, use reasonable
endeavours to increase the sum insured or make other changes to the policy;
(d) at the request of the buyer use reasonable endeavours to have the buyer’s
interest noted on the policy if it does not cover a contracting purchaser;
(e) unless otherwise agreed, cancel the insurance at completion, apply for
a refund of premium and (subject to the rights of any tenant or other third
party) pay that refund to the buyer; and
(f) (subject to the rights of any tenant or other third party) hold on trust for
the buyer any insurance payments that the seller receives in respect of loss
or damage arising after the contract date or assign to the buyer the benefit
of any claim; and the buyer must on completion reimburse to the seller the
cost of that insurance (to the extent not already paid by the buyer or a tenant
or other third party) for the period from and including the contract date to
completion.
G3.2 No damage to or destruction of the lot nor any deterioration in its condition,
however caused, entitles the buyer to any reduction in price, or to delay
completion, or to refuse to complete.
G3.3 Section 47 of the Law of Property Act 1925 does not apply.
G3.4 Unless the buyer is already lawfully in occupation of the lot the buyer has no
right to enter into occupation prior to completion.
G4
Title and identity
G4.1 Unless condition G4.2 applies, the buyer accepts the title of the seller to the
lot as at the contract date and may raise no requisition or objection except in
relation toany matter that occurs after the contract date.
G4.2 If any of the documents is not made available before the auction the following
provisions apply:
(a) The buyer may raise no requisition on or objection to any of the documents
that is made available before the auction.
(b) If the lot is registered land the seller is to give to the buyer within five
business days of the contract date an official copy of the entries on the
register and title plan and, where noted on the register, of all documents
subject to which the lot is being sold.
(c) If the lot is not registered land the seller is to give to the buyer within five
business days an abstract or epitome of title starting from the root of title
mentioned in the special conditions (or, if none is mentioned, a good root of
title more than fifteen years old) and must produce to the buyer the original
or an examined copy of every relevant document.
(d) If title is in the course of registration, title is to consist of certified copies
of:
(i) the application for registration of title made to the land registry;
(ii) the documents accompanying that application;
(iii) evidence that all applicable stamp duty land tax relating to that
application has been paid; and
(iv) a letter under which the seller or its conveyancer agrees to use all
reasonable endeavours to answer any requisitions raised by the land registry
and to instruct the land registry to send the completed registration documents
to the buyer.
(e) The buyer has no right to object to or make requisitions on any title
information more than seven business days after that information has been
given to the buyer.
G4.3 Unless otherwise stated in the special conditions the seller sells with full title
guarantee except that (and the transfer shall so provide):
(a) the covenant set out in section 3 of the Law of Property (Miscellaneous
Provisions) Act 1994 shall not extend to matters recorded in registers open
to public inspection; these are to be treated as within the actual knowledge
of the buyer; and
(b) the covenant set out in section 4 of the Law of Property (Miscellaneous
Provisions) Act 1994 shall not extend to any condition or tenant’s obligation
relating to the state or condition of the lot where the lot is leasehold property.
G4.4 The transfer is to have effect as if expressly subject to all matters subject to
which the lot is sold under the contract.
