Frequently Asked Questions

You need to register in order to bid. You will be required to fill in a Bidder’s Card and will be allocated with an exclusive Bidder’s number. The auctioneer will ( in the case where there a many bidders attending the auction) not accept a bid from you unless you produce your Bidders Card. You needed to have regiusatered before you can complete the ZCoinditions of Sale agreemnent .

 

Do I need to pay a deposit in order to register to bid?

You may, in some instances, be required to pay a refundable deposit in order to register at an auction. Please check the auction advertisement for the auction details,

 

When will I be required to make payment of the deposit and auctioneer’s commission?

The deposit and auctioneer’s commission are payable immediately on the fall of the hammer, irrespective whether the sale is subject to confirmation.

 

Can I change the Conditions of Sale?

No. The Conditions of Sale is approved by the seller before the sale; it is not negotiable and may not be altered in any way.

 

Are there reserve prices at auctions?

Most auctions are sold with no reserve, however, bids may be subject to confirmation by the Seller within a certain time period. Sales in Execution ‘lots” are however, sold on the fall of the hammer without any confirmation period, and with no reserve. Subject to confirmation is not a reserve price but is a formality to protect the seller and creditors from having secured assets being sold well below their market value.

 

Can I get a bond for immovable property purchased on auction?

Yes but auctions are non-suspensive transactions and therefore an offer at an auction sale is not subject to your obtaining a bond. You would need to obtain a pre-approved bond (or finance) prior to the auction. If you bid and your offer is accepted and you are not granted a bond, or do not qualify for the amount of your bid, you will be held liable and responsible to fulfil all the obligations in terms of the Condition of the Sale Agreement signed at the auction.

 

What is meant by sold “Subject to Confirmation”?

Immovables and movables that are sold Subject to Confirmation are usually encumbered to a secured creditor. Confirmation will be obtained within the time frame specified at the auction and you will be advised as to whether your offer has been acceptable or not. However, payment is required immediately after the auction sale.You will be refunded in full immediately after it has been established that your offer has not been accepted.

 

When is the balance of the purchase price payable?

In the case of immovable property (real estate), the balance of the bid price is due on registration of transfer. However in the case of movable assets, the balance is payable immediately on conclusion of the auction and no goods may be removed until full payment is received for them.

 

Can I submit an offer prior to the auction sale?

Yes, offers submitted prior to auction will be considered.

 

Can I bid on behalf of another person or entity?

Yes you can bid on behalf of another person or entity. You need to note that should the person or entity on whose behalf you are bidding, not be able, for whatever reason, to take transfer of the property, then you (who bids at the auction) will be deemed the purchaser and will become responsible for all the terms of the agreement of sale. You will be required to sign personal surety on the auction day.

 

What happens if I fail to come up with the balance of the purchase price?

It is a very serious matter to go into breach after an auction and legal action will be taken against you. If you have any uncertainty, it is best not to bid at all. In terms of the Conditions of Sal, the seller will reserve their right to take the necessary legal action against you should you be in breach of contract or fail to fulfill any of your obligations in terms of the Conditions of Sale. You will be held liable and responsible to fulfill your obligations. Should you still remain in breach of contract, all monies already paid by you to the auctioneer and/or seller will be forfeited as "rouwkoop" (pre-estimated damages).

 

When do the movable assets (real estate) become my risk?

If possession is given on confirmation or the fall of the hammer then you will be responsible for the assets and be required to arrange suitable insurance and storage from that date. Alternatively, the assets become your risk from the date of possession as stipulated in the Conditions of Sale.

 

Do I have any recourse if I have bid on the wrong items or they are found to be unsatisfactory after the auction?

Purchasers must familiarised themselves with the items for which they are bidding at an auction. Remember that all items are sold "voetstoots" and the bids are made in public. There is therefore no recourse. Once you have bid, you are bound and you will subsequently be required to pay in full for these assets and remove them from the venue.