Property Auction South Africa
1.What do I have to do to take part in the bidding process at an auction?
You have to register before the auction by means of paying a security deposit (refundable if you are not the highest bidder) and also provide a copy of your ID as well as proof of residence.
The auctioneer will ask you to complete a bidder’s registration card and you must also complete the bidder’s registration at the registration desk.
2.Can I take part in the bidding process without registering for the auction?
The auctioneer is not allowed to take bids from anybody has hasn’t followed and complied with the registration process.
3.Why do I have to pay a registration fee?
The security deposit is there to protect the auction and bidding process and also the potential bidders from people who attend auctions and simply chase up a bid and then can’t comply with the terms and conditions of the auction.
4.Can I buy on auction and make my offer subject to bond approval?
Auction sales are non-suspensive. If you bid on an auction you must be sure that you will be able to get finance and comply with the terms and conditions without any suspensive conditions.
5.Where do I get the terms and conditions for the auction?
The auctioneer will have an information pack available before the auction; the pack is published on their website and available on demand.
6.What do I have to pay if I am the highest bidder on auction?
A deposit on the amount that the property was knocked down for and also the auctioneer’s commission. These percentages vary from auction to auction and must be cleared with the auctioneer before the auction. It will also be included in the terms and conditions of the sale.
7.When can I view the property or goods to be auctioned?
The auctioneer will advertise a specific time for viewing and if no time is advertised, viewing can always be arranged with the person dealing with the property.
8.Do I have to pay any arrear costs if I buy a property on auction?
Only when you buy from the Sheriff and when it is a sale in execution. Usually the buyer is only responsible for any rates and taxes and associated costs from date of occupation. The terms and conditions from the auctioneer will always deal with this specifically. Make sure that you clear this issue with the person who handles the enquiry on the property before the auction.
9.If I am not successful on the auction ,can I make a higher offer afterwards?
If it wasn’t sold and confirmed on the fall of the hammer you are allowed to do that. The offer must be exactly on the same terms and conditions of the auction (deposit and commission payable to the auctioneer). It must be done within the confirmation period (dealt with in the conditions of sale). However, the highest bidder has got the right to equal your bid and you can’t come back with a higher offer again. You only have one chance.
10.Can I send somebody else to bid on my behalf at an auction?
If somebody else bids on your behalf at an auction, that person must be accompanied with a power of attorney giving him/her a specific instruction to bid on your behalf on that SPECIFIC property. The POA must also be accompanied with the relevant Fica (ID and proof of residence) documents of both parties.
What is a classic car auction?
A classic car auction is the ideal platform for car collectors to obtain that evading dream car to add to their collections.
Classic car auctions are lavish lifestyle events for all car enthusiasts to attend.
Why buy a collector’s car on auction?
Auctions are, by their very nature, pure capitalism at work, with the laws of supply and demand never more evident than in an auction room. If the demand for a particular car is high, the price will likely also be high. At the same time, if a car is not in high demand, chances are that a bidder can claim a collector’s item at a bargain price.
A car auction is simply where all roads meet in the collector car business. Savy buyers should work with the auction house to get the information they need in order to make informed bids.
What does “as-is” or “voetstoots” mean? What if there is a problem with the car, or if it turns out to be different after purchase than what the auction house represented before purchase?
Interested buyers must do their homework thoroughly before the auction by visiting the website for a wide selection of images and descriptions of all the lots. Interested buyers should also attend beforehand to view the vehicles in person, where possible, and obtain all information necessary to make an informed bid.
All sales “as-is” or “voetstoots” refer to the fact that the bidder is responsible for inspections and verification of condition, authenticity, and completeness of any vehicle purchased.
Pieter Geldenhuys, Managing Director of Bidders Choice, reminds the interested buyer that “cars are never represented by the auction house. All actions, any statements or representations are strictly and solely those made by the seller.”
“Once you win the bid, you own the car,” he adds.
What if the reserve is not met, but I still want the car?
In auction jargon, the reserve is the minimum price required in order for a specific lot to sell. This figure is kept confidential and is set by the seller in advance of the sale. If the reserve is not reached on the podium, the auctioneer will sell the lot subject to confirmation.
However, all is not lost for interested bidders. At many auctions, they are invited to speak to an auction house representative for continued negotiations, and a possible post-sale deal.