FREQUENTLY ASKED QUESTIONS

A.
Option 1 is a traditional unconditional auction where the property is sold when the auctioneer’s hammer comes down. The hammer indicates what would traditionally be called exchange of contracts. Completion normally takes place 28 days later although this period can vary so check the special conditions for the lot you are interested in.

Option 2 is a conditional sale and is a type of lock out agreement. When the hammer comes down the buyer pays a deposit of £1000 and has 28 days in which to exchange contracts. If you fails to do so the vendor can keep the deposit. Within this period the vendor agrees not to sell to anybody else.

Q. What is a Vendor?

A. The 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 reserve is agreed between the Vendor and the Auction house near the auction date and is not disclosed. If bidding does not reach the reserve price then the lot is withdrawn.

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 can 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. The conditions are also available on our web site.

Q. Can I bid without attending the auction ?

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 Auctions North East to discuss submitting telephone bids

In writing - You specify your maximum bid and the auctioneer bids for you

NB. Whichever route you chose Auctions North East 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 as per the catalogue/web site and you should contact the local Alliance member office 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 for Option 1 and recommended for Option 2.

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 Yes. Let your solicitor have a copy of the auction catalogue, he may wish to contact the Auctioneer and the Vendor’s solicitor on your behalf. In Option 1 the Auction house can provide a pack of information in advance of the auction. In Option 2 this is not necessary as the buyer has 28 days in which to exchange contracts.

Q. Can the catalogue details change?

A. There are occasionally last minute amendments to auction catalogues. Amendments are available from the Auctions North East website or by telephone request. On the day of the auction any changes will be distributed as an addendum sheet. You should liase with Auctions North East to be sure you are aware of any changes.

Q. What are Special Conditions?

A. These are conditions of the sale of a particular lot that apply to that lot only. You should obtain details of any special conditions that apply to a lot you are interested in from the Auctioneer.

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 Auctions North East 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. You need to register on the night of the auction before the auction starts. You will need to provide photo identification (passport for example) together with a utility bill showing your home address. You will be provided with a paddle showing your registration number. When your lot comes up our Auctioneer will confirm the address, the lot number and any last minute details or amendments. Make sure you are bidding for the correct property.

You can bid by raising your paddle, hand, catalogue or any appropriate means. If you are bidding an amount that is different from the one the Auctioneer is offering you should shout this out.

You should make it clear to the Auctioneer that you are bidding, however don’t worry it is not true that an Auctioneer will mistake any casual movement for a bid.

Q What happens at the fall of the Hammer?

A . Option 1. 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. You will sign our Memorandum of Agreement in the room afterwards and your solicitor will arrange completion with the Vendor’s solicitor.

Option 2. If you are the last and highest bidder at the fall of the Auctioneer's hammer, you are the successful bidder and have 28 days in which to exchange contracts. You will sign our Agreement in the room afterwards. The agreement also stops the vendor selling to anybody else within the 28 days.

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

A.
Option 1. 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. Purchasers will pay a fixed contract documentation charge of £120 including VAT. Cash payments are not acceptable. Payment should be by Bankers Draft but personal/business cheques may be accepted subject to prior agreement with Auctions North East. Payments by credit card are not possible

Option 2. You are still advised to have your finances arranged by the auction day. If you are the successful bidder you will be required to pay a deposit of £1000. This forms part of the purchase price if you proceed. If you fail to exchange contracts within 28 days then the vendor is entitled to retain your deposit. You will have to sign our purchase agreement also. Purchasers will pay a fixed contract documentation charge of £120 including VAT. Payment of the deposit must be by Banker’s Draft payable to Auctions North East.

Q. Who is responsible for insurance of the property?

A. You are responsible for insuring the property from exchange of contracts which takes place on the fall of the Hammer in Option 1 and within 28 days in Option 2.. 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 Auctions North East for information on properties available post auction. It is sometimes possible to agree a sale in the room after the auction. Our staff will always be pleased to discuss this with you at the auction.