Important Things to Know before Attending Auction Property For Sale
Posted by highstreetauction on July 21st, 2017
Buying properties at auctions id done by many people these days. In South Africa also buying and selling of property is don through auctions also. Residential property as well as Commercial property, like Industrial property, are bought and sold at auctions. Auction Property For Saleattracts attention from many people, who love to try their luck in owning property at auctions. Being able to smartly bid at auction can help the players at auction win the game.
You need to register yourself as a bidder and get a number or a bidder’s "paddle" valid for the particular auction you wish to attend. You need to carry along you your ID document, proof of your residential address (like for example a municipal account), and the registration fee etc. This registration fee is generally payable by Electronic Fund Transfer (EFT) or bank guaranteed cheque. This fee is completely refundable if you decide not to bid at the auction at all, or if your bid is unsuccessful and you do not end up owning Auction Property For Sale.
Remember this that a person still needs to register even if she or he will not bid for her/him but is going to bid on behalf of someone else. It might also happen that a person attends and bid at an auction on behalf of a legal entity such as a close corporation or trust. In such cases the individual will be asked to produce proof of her/his authority to bid.
The person bidding on other’s behalf may also be required signing an undertaking (surety), which will make her/him responsible to go through with buying the property in case the other person/ entity drops out post a successful bid. It is advised therefore, to think many times before you decide to bid on someone else’s behalf!
In case a person at the auction happens to make a successful bid on an immediate basis, then she or he will be asked to sign off on the Conditions of Sale, which confirms her/his purchase of the property, before she/he leaves the auction site.
The person will also require paying the auctioneer’s commission ( generally 1/10th of the purchase price + VAT). The successful bidder also needs to make a deposit of at least 5% of the purchase price, less your initial registration fee. Arrange for funds shortly post auction for making “a guarantee of payment” to the seller’s lawyer.
Readers should know that there is a kind of auction known as Absolute Auctions. Absolute auctions are sales where there is no such thing called reserve price and the property is simply sold off to the highest bidder. If you can bid very highly and have got no financial limitation at all, then you end up winning the bidding and owning the property eventually.
No minimum/maximum purchase price limit or reserve price is there in such auctions. This usually happens in the case at sales "in execution". This means where the property is being sold because the debtor cannot repay the debt for financial breakdown. This auction is schedules following a judgment against the owner for unpaid debt.
About the Author:
The writer is an expert in the field of property and real estate. He will share ideas related to Houses On Auction In Johannesburg,Property Companies In South Africa,Retail Property Auctions,and more
