Auctions - Questions and Answers

Q. What is a Vendor?

A. Vendor is the person or organisation selling a property or plot of land.

Q. What is a reserve price?

A. A reserve price is the lowest price the Vendor will accept. The existence of a reserve price will be disclosed but the amount of the reserve will not.

Q. What is a guide price?

A. Guide Prices are simply an idea of what price the property is expected to sell for on the day. These often change in the run up to an auction so you should contact the auctioneer to check these.

Q. Should I obtain a catalogue?

A. Yes. The catalogue contains details of the property and the General Conditions of Sale and you should take the time to read these carefully.

Q. Can I bid via telephone?

A. If you cannot attend the auction it may be possible to bid by proxy. This can be done in one of two ways.

By telephone You will need to contact Codys to discuss submitting telephone bids

In writing You specify your maximum bid and a third party bids for you.

NB. Whichever route you chose Codys require you to complete a proxy bidding form and to deposit a cheque large enough to cover the sale deposit amount based upon the largest figure you intend to bid.

Q. Can I inspect the property before the auction?

A. It is usually possible to view the property before the auction. Viewings are arranged on a block basis and you should contact Codys to book a viewing.

Q. What if I need finance?

A. It is essential that you have all necessary funding in place for the day of the auction.

Q. Do I need a survey?

A. A survey is only mandatory if you require a mortgage. However, we would recommend that you ask a chartered surveyor to undertake a survey on your behalf before buying any property.

Q. Should I contact a solicitor?

A. Let your solicitor have a copy of the auction catalogue, he may wish to contact the Auctioneer and the Vendorís solicitor on your behalf.

Q. Can properties be sold or withdrawn prior to auction?

A. Properties do sometimes sell prior to auction or occasionally are withdrawn. You should check with Codys on the day of the auction to confirm that the lot in which you are interested is still being offered.

Q. How do I bid at auction?

A. We ask all people intending to bid at Auction to register either before or on the day of Auction if you are attending. You will then be given a bidders registration number. If you are successful the Auctioneer will ask you for you bidding number.

Q. What happens at the fall of the Gavel?

A. If you are the last and highest bidder at the fall of the Auctioneer's hammer, you are the successful purchaser and are legally committed to pay the price you bid and complete the purchase. No one can outbid you after the sale and the Vendor is equally legally bound to complete the sale under the terms and timescale stipulated in the contract.

Q. If successful at the auction what do I have to pay?

A. You must have your finances available on the day. If you successfully purchase a lot at auction you will be required to pay a deposit before you leave the auction room. The deposit required is 10% of the sale price or £2,000 (whichever is the greater). Cash payments are acceptable. Personal/business cheques will be accepted subject to Codys receiving satisfactory proofs of identity (passport or driving license or recent utility bill) together with details of your Solicitors. Payments by credit card are not currently accepted.

Q. Who is responsible for insurance of the property?

A. You are responsible for insuring the property from exchange of contracts. You should make arrangements in advance.

Q. What if the lot does not sell?

A. If a lot does not reach the reserve price the lot will be withdrawn. Interested parties should contact Codys for information on properties available post auction.

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