Your Questions, Answered.
We pride ourselves in being property auction experts. This Information Centre aims to answer all the frequently asked questions we receive about the auction process.
Yes, you can. If you can’t attend the auction in person you lodge your best bid with the auctioneer in writing by completing the Written Bid Form on our website and sending it in at least 1 hour prior to the auction start. Alternatively, you can have someone else attend and give them bidding instructions in the room on your behalf. Yes, you can. But you will need to work quickly when you find the property that you want to buy. First you should familiarise yourself with the auction process and we suggest that you attend an auction to see how it works. Work out how much you can afford to pay for the property and associated costs of purchase, then start searching for a suitable property in your area of choice. If you need a mortgage, like most first-time buyers, it is sensible to start arranging this as soon as possible – it will help you to set your budget, to bid with confidence knowing that you have the funds needed and to get things moving quickly when you do make the winning bid. Remember if you do need a mortgage then the property needs to be mortgageable; you will probably appoint a surveyor or another professional to check the property for you and provide advice on value. You will also need a solicitor to deal with the legal aspect and advise on any problems. Then with help from others decide on your budget and maximum bid before attending the auction. Then check your finances, make sure that you have the 10% deposit accessible as you will be required to pay it over on the day of the auction. You need to call the Auctioneer (or the Vendor, if the Vendor so arranges) to view all developed property. Undeveloped property that needs no keyed access may be viewed on your own, at your risk, provided you have the property details and can accurately locate it. On occasions, some properties are offered for sale without internal viewing being available. We do suggest that you speak to the Auctioneer team member; they will be able to answer any questions that you have concerning the property. Bidding at auction isn’t difficult but doing for the first time can be a little daunting. We have several ways for you to bid, the main one being bidding in person in the room. If you can’t attend the auction, there are the options of being able to bid, having a representative bid on your behalf (proxy bidding), or, it may be possible to bid live online too. If you want to place a written bid, please notify us in advance of the auction day to ensure that your bid can be accommodated. To bid in person, you just need to listen for the lot that you wish to bid on and raise your paddle clearly to attract the auctioneer’s attention and get your bid accepted. Once he or she has seen you and taken your first bid, they will know to keep looking to see if you wish to bid again. If you feel you may be too nervous to bid yourself, you can bring someone along to bid on your behalf, or a member of the auction team will be happy to assist if needed. For more information, please see our Terms and Conditions of Auction Sale. The deposit payable by the successful purchaser immediately after the hammer has fallen is 10% of the sale price. Deposits usually need to be paid from cleared funds. Please check the check the Terms and Conditions of Auction Sale. for a list of accepted payment methods. Please ensure sufficient funds are available in your account before bidding. Yes, you can buy in a company name but you will need to provide extra information in order to so. Firstly, bring along with you a letter of authority on company letterhead, signed by a director or officer of the company confirming you have authority to act on behalf of the company. You will also need to provide the company registration number and registered address. This is in addition to the personal ID in the same form as all other buyers. Yes, you can and many of buyers purchase with finance provided by lenders. You will nearly always need to have the deposit monies, however if you have other property assets you may be able to borrow against these. Some purchasers buy with a traditional mortgage, but to do so you will need to ensure you choose a lender who can act quickly. Other than the deposit, and the balance of the purchase price, there are no additional fees payable by the Purchaser to the Auctioneer. The Reserve Fee is the minimum bid amount set by the Vendor. No bid will be accepted below this amount. You will need to check the Terms & Conditions of Auction Sale, which will advise you on what methods of payment will be accepted by the Auctioneer. Auctioneer usually requests cleared funds so payments by bank transfer, banker’s draft or debit card or wire transfer will be required. You may be allowed payment by personal or business cheque but do refer to the auctioneer if you are unsure. Cash over US$9,999 will not be accepted due to anti money laundering regulations. Yes, you can. Firstly, the property will need to be mortgageable, so you will usually be choosing a good condition property. Then you will need to have your mortgage in place and your mortgage offer to hand when you bid at the auction. That’s because if you are successful you will be required to sign the contracts on the fall of the gavel, pay your deposit and will want to have your funding guaranteed so that it is available for completion. No, you don’t. Auctions are open to the public and anyone can attend. Occasionally, if there are many more buyers than usual, and more than the auctioneer expected, they may ask that space is made available as a priority to those wishing to bid. If you are the successful bidder, you will need to pay your 10% deposit on the day. The balance of the purchase monies will be paid as part of the completion process. Please see the Condition of Sale for more information on this. You can move into the property once legal completion has happened. The auctions team will be informed by the Vendor that they can release the keys, at which time you will be the owner of the property and able to move in. A survey isn’t compulsory, but if you are unsure about the structure or condition of the property then you might wish to instruct a surveyor, an engineer, or your builder for advice. Remember that contracts are exchanged on the fall of the gavel, so if you are wishing to bid then you need to complete due diligence prior to the auction. A Purchaser who is an Anguillian must pay the balance of the purchase price within fourteen (14) days after the date of the Auction. If the Purchaser fails to pay the balance purchase price within 14 days the Deposit paid by him shall be forfeited. A Purchaser who is not an Anguillian must pay the balance purchase price within fourteen (14) days of the approval of the Licence by the Government of Anguilla or within three (3) months of the Auction whichever is the first to occur. If the Purchaser fails to obtain a Licence within the period specified (meaning an application for the licence has been submitted and is pending), the Vendor shall be entitled, upon seven (7) days’ written notice to the Purchaser, to rescind the sale and the Purchaser shall be entitled to the return of the deposit without interest. If the Purchaser obtains the Licence within the time specified but for whatever other reason fails to pay the balance purchase price within fourteen (14) days of the grant of the Licence, the Deposit paid by him shall be forfeited. Best advice is to get the banker’s draft made out for 10% of your maximum bid price. It is always sensible to check on the mortgageability of a property before bidding on it. But as a rule of thumb, the following situations will likely make a property unmortgageable. Failure to complete breaches the contract and can bring significant penalties. This will usually include forfeiting the 10% deposit and you are advised to take advice from your solicitor regarding any other consequential claims that could be made against you and what other obligations you might have. Buyers in this predicament may wish to explore the possibilities of short term finance and put in place a plan to resell the property quickly after completion. Your 10% deposit (subject to a minimum) must be paid soon after the gavel comes down. Taking legal advice is part of your necessary due diligence before you bid. Some regular auction buyers may feel experienced enough to do this work themselves, but for others we recommend that you do consult a solicitor. If required, do speak with the auctions team about who to use and what you need them to do. It is often a good idea to insure the property as soon as you have exchanged contracts. You may want to ask the auctions team whether the vendor will continue to insure through to completion. Some do, but this cannot be assumed, so recommend that you insure the property regardless. If the property is damaged during the period between exchange and completion, then you as the purchaser will require it rectified and that will be easier to achieve under your own insurance policy than by going after the seller’s insurers. As a buyer, you will need to decide and consult with your insurer as to the likely costs. You will be due to receive rent from the date when legal completion occurs and it transfers into your ownership. There should be no delay but you will need to liaise with your solicitor and with the tenant to set up rent payment procedures. Due diligence means that you have done your homework on a property that you are interested in bidding on. You need to do this before placing a bid as there will be no turning back if it is successful. This includes checks on the property itself, its condition, remedial works required, location, design, and suitability. Also, due diligence refers to vetting of the title documents, searches, special conditions of sale and other related papers. Many buyers will engage the services of a solicitor to check the legal document and advise on their findings; also, a buyer may seek advice from surveyors, engineers, architects etc. regarding the property or land as well. No, unless the Vendor removes the property from Public Auction listing. After auction day, unsold lots will be relisted for future auctions. No, this really should never happen. An auctioneer will want to make eye contact with each bidder when they start bidding and normally seek confirmation that they are bidding intentionally before accepting the bid. Don’t be fearful that attending an auction might result in you accidentally buying a property, this doesn’t happen.BUYING AT AUCTION
An Administration Fee or Charge covers a portion of the auctioneer’s costs in servicing the requirements to sell the property such as arranging valuation, designing advertisements, responding to queries and arranging viewing of the property. The amount can either be a fixed fee, or a percentage of the sale price (subject to a minimum amount). We specialise in real estate, including land, houses, hotels, villas and vehicles. We charge and Administrative Fee to cover some of the upfront expenses, then Auctioneer’s Commission will be charged after the property has sold and exchanged contracts. Commission levels vary according to the type and value of the property and the efforts involved in disposing of it. We sometimes charge a Room Rental Fee. The Auction Teem will advise if your type of auction attracts a room rental fee. Some of the upfront expenses you will also have to pay for are advertisements, valuation reports and service of any notices on relevant individuals. An estimate of those expenses can be obtained from the Auction Team. Generally, for the average property on auction, you can instruct, exchange and complete in as little as 4 weeks if you need to sell urgently. More often though, properties will be entered into auction 4 – 6 weeks before the auction day, exchange occurring at the sale, and then full legal completion happening 2 - 4 weeks later (if the purchaser does not need an alien Landholding licence). The more marketing time a property has before the auction, the higher chance it will have to sell. However, the auction team will accept late entries, sometimes only 2 weeks before the auction day, but you may need to have a keener, more attractive reserve price to attract bidding interest. Many types of property will sell well at a traditional auction, sometimes achieving higher sale prices than through real estate agents. If your property matches any of the following descriptions, then auction will likely be right for you. + Does it need refurbishment, can it be redeveloped or extended, or is there space for another home to be built? For such properties, there is a multitude of conversion specialists, small builders and clever developers who will compete to buy it. + Are there difficulties or issues with the property – is it unmortgageable, is there a short lease, neighbourhood difficulties, does it have an adverse history, or legal issues or have sales kept failing. Such stock is most regularly sold by auction and often it is better to make auction your first-choice route rather than have it exposed and fail through a real estate agent. + Is your property tenanted or has it been rented out? If so and this is its likely future use, you will want investors fighting for it. + Maybe it is a vacant or an occupied commercial lot, or a property being sold as an investment? If so, auction becomes the normal choice. + If you are in a hurry, need a certain sale, or want to ensure a level playing field and full transparency? Many people do, and they choose auction for one or more of these reasons. Yes, this is called the reserve price. Your property will be offered subject to this reserve price, and it may be kept confidential between the vendor and auctions team but make more sense to publicise this. It is usually a figure below which the auctioneer cannot sell the property during the auction. An auction property will be promoted more heavily than if offered through a real estate agent. As well as being added to our website, it will also be sent to an email database of active auction buyers and proactively sent to local buyers as part of a diverse marketing strategy. Press advertising will be used in areas where this is still productive, but we also use social media actively too. Once the gavel has fallen, the sale is agreed and contracts have exchanged, and neither the seller nor the buyer can pull out at this stage. On the very rare occasion where the buyer fails to complete in accordance with the contract, then a contingency process is followed and the buyer risks losing their deposit and incurring further penalties too.SELLING AT AUCTION
Properties that do not sell at reserve are withdrawn from the sale. If the offer made is at the reserve price, then the property can often be hammered down under standard auction rules. A vendor may reduce the Auction price for the next round of Auctions or repeat the auction at the same reserve price. Every one of our auctions is advertised on our website. You can look at the full list of upcoming auctions by visiting our Auctions Calendar. Our schedule tells you the date and start time of each auction and there’s a link to view the properties that we are offering. This is untrue. Many of the properties offered at auction are mortgageable and could be moved into without difficulty. However, there will be others that may have issues or require works and will not be suitable for mortgage lending. We always endeavour to describe properties accurately. All buyers are advised to complete all necessary due diligence prior to bidding – if a property’s condition is a worry, then consider having a survey or inspection and obtain appropriate reports. This is important as it will help you to make an informed decision before bidding begins. Also consider appointing a solicitor as early in the process as possible – they will need to review the legal documents for any property that you are interested in and check other information such as searches, planning permissions etc. The Auctioneer generally will offer the properties in lot order, starting with lot 1. Occasionally and in special circumstances, this might be varied. It is best to assume that auctioneer will stick to lot order and if you are interested in bidding, you should ensure that you arrive in the room early enough and that you position yourself so that you can be seen by the auctioneer.GENERAL QUESTIONS