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Glossary
of Auction Terms
Here
is your guide to the language of the auctioneer, now armed with this easy
to use glossary, you will soon be speaking like an auction native.
The
Basics
Auction
- the auction itself is a system of sale where something, in this case
property is sold to the highest bidder
Auctioneer
- this is the person who has the job of announcing each lot for sale, they
will also acknowledge bids placed in the room in person or via the phone
or internet, they will announce the final bid price when the gavel is
struck and will also declare if a lot is sold or unsold
Auction
Catalogue -
this publication is a catalogue of each lot for sale, it gives details of
the property including how you can arrange to view the property and the
general conditions of the sale
Bid
- the bid is is a specified amount you offer during the auction in person
or leave on your behalf with the auction house
Lot
- a lot is the individual property or land whose details are featured in
the auction catalogue, each different lot is identified by a unique number
that will help you keep up with the current lot that is being bided for
during the auction itself
Biding
In
the Room - when the auctioneer announces the current bid as 'in the room'
it means that that bid came from someone in the room and not by phone or
internet
Telephone
bid - if you cannot make it to the auction but are available on the phone
then you can arrange to make a telephone bid, a member of staff from the
auction house will telephone you from the saleroom just before the lot you
are interested in is about to start, they will then relay any bid you make
to the auctioneer during the lot
Internet
Bids - this is a very new way of bidding and not all auction houses will
have this facility, the way of internet bidding also differs from auction
house to auction house, some will simply use something such as email or
messenger others will have the equivalent of their own eBay site but this
is much rarer
Proxy bid
The auctioneers can undertake bidding on behalf of buyers unable to attend the auction in person. The buyers must contact the auction house prior to the auction to obtain an official, proxy bidding form. This must then be returned to the auction house with a deposit cheque within the time specified by the auctioneers. The buyer writes the maximum amount they will bid to on the form and the auctioneers will bid on behalf of the buyer, up to, but not beyond, the stated price.
Reserve
A reserve price is the lowest price the vendor will accept. This is agreed between the vendor and the Auctioneer. Most properties entered into the auction have a reserve price. This is confidential and not disclosed to any interested parties.
Withdrawal
Failure to reach the reserve price or insufficient bidding. The auctioneer will withdraw the property from the auction
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 whether contained in a supplement to the catalogue. This may be a written notice in the catalogue, or announced at the auction.
Completion
On completion of the sale of the lot there is usually a defined time period from the auction to the completion date in which the sale must be finalised. Penalties will be applied if the sale is completed late which can include losing your deposit.
Exchanging contracts
If you are the successful bidder at the auction sale, the sale is binding on the fall of the hammer and you will then be asked to sign and exchange contracts in the auction room.
Guide price
A guide price gives an indication of the price that the property is expected to sell for and what the vendor is hoping to achieve.
Guide prices are for information only and shouldn’t be relied on as an indication of reserve price, or representing professional valuations for any purpose. Purchasers are deemed to have relied on their own knowledge or obtained the independent, professional advice of others.
Legal pack
The vendor's solicitors prepares a legal pack containing copies of all the legal papers that you and your solicitor are likely to need to make an informed decision about your lot. The pack should include (where applicable) copies of: special conditions of sale, title deeds, leases, office copy entries, searches, replies to pre-contract enquiries.
All legal packs will be available for inspection at the auction room. You must be aware that you buy subject to all documentation and terms of contract whether or not you have read them.
Previews or exhibitions
A viewing of the property held in advance of the auction. Pre-auction viewings are open to the public and may be attended at no charge.
Private treaty
The sale of a property at a price agreed by the seller and the buyer or their agents.
Tenancies
Contracts to occupy or lease the property subject to rent. A lot may be sold subject to exisiting tenancy agreements.
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