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We have compiled the following list of property auction terms with a simple explanation to help you understand the terminology being used in an auction sale.
This method of sale means the buyer and seller are legally bound to complete once the contracts are signed, on the terms agreed. If the property is sold by auctions, contracts are exchanged immediately and usually a 10% deposit must be paid. Completion usually a further 3 and 4 weeks. This method is the quickest and most secure way to sell your property.
This is the lowest possible bid that a bidder can place on a property. The minimum level at which bidding can commence once a bid is submitted. The starting bid should not be relied on as a valuation, as the reserve may be higher.
The reserve is the minimum price the vendor is prepared to sell the property for. The property will not be sold for less than this figure. This figure does not have to be published by the agent prior to the auction. Once the reserve price has been met, this fact will be displayed on the bidding panel.
Prior to the auction date, a buyer can arrange a survey of the property in question and their solicitor can preview the legal documents. If the buyer is interested in the property, they need to register for the auction and submit a bidding deposit. Once they are approved to bid, they can submit an offer, once the auction has commenced. If they are successful, the booking deposit is retained and they must pay the remainder of the deposit (usually 10% of the sale price less the bidding deposit).
An agent may choose to allow interested parties to submit an offer prior to the auction. If you wish to submit an offer pre-auction, you need to contact the selling agent and they will guide you through the process. Uour offer will be brought to the vendor for consideration before the auction. Your offer will still be unconditional and you will be obliged to sign the legal documents. Do you need to mention bin?
Once the auction is completed, the vendor/agent signs the contract for sale and the successful buyer/agent countersigns digitally. At this point, both parties are legally bound to complete the property transaction. The sale isn't fully complete yet but there is a legal obligation for the buyer to complete the sale.
To close the sale the purchaser pays the balance of the sale price (purchase price fewer monies paid to date) to the seller's solicitor. The closing date can happen on the same day as the exchange date but normally a grace period of 3-4 weeks is given. The vendor must vacate the property on the closing date and hand over the keys to the buyer.
Offr provides cutting edge and user-friendly technology for estate agents to recreate the buzz of an auction online. Real-time notifications, instant bidding and bid extensions help to keep all interested parties notified and informed. An online auction is convenient and accessible to anyone, anywhere in the world. conduct an auction directly on your website and avail of these benefits;
Do you want to run an auction directly on your website? Contact us today on +44 20 3870 4553 or +353 76 888 6888 to discuss.
Agents using the Offr platform: https://offr.io/find-agent