Properties on Auction
About Property Auctions
Dales Bros has been professionally and successfully auctioning property for decades and offers clients the following:
- No seller’s commission.
- Extensive experience in property auction processes and administration.
- A proven track record in selling a broad range of both residential and commercial property including high-end properties by Auction.
- An extensive support base for setting up and preparing properties for Auction.
- An interactive website for marketing properties through.
- A comprehensive data base of buyers.
- Peace of mind that you are dealing with one of South Africa’s most established auction houses.
In keeping with overseas trends property auctions are fast becoming a popular way to market residential, commercial, industrial and agricultural property, with emphasis on the purchaser being accountable for the commission generated from any successful purchase transaction. As in the case of most auction options, your property enjoys widespread marketing support and exposure.
Conventional Property Auction Method
- The seller is NOT charged a seller’s commission.
- An Agent will give a full and detailed proposal of the value your property, inclusive of the recommended marketing campaign and how these costs are apportioned. A reserve price can be discussed and set prior to the auction taking place, providing piece of mind to the seller.
- The property is sold “Voetstoets” and is not sold subject to any suspensive conditions i.e. somebody buying your property but only once they have sold their property, or had their finance approved.
- Following the auction the seller will enjoy a seven (7) day confirmation period, to consider any offers submitted on auction.
- The entire process from date of instruction to the expiry of the confirmation period should not take longer than 5 weeks, making this the simplest and most time efficient means of disposal.
- All buyers at the auction must have their finance pre-approved thereby cutting out the threat of potential time wasters or bogus buyers. A ten thousand rand (R10, 000) bank guarantee is also required in order to qualify to bid. This deposit is forfeited in the event that the purchaser defaults in his payment obligations.
- Finally, we will require a sole mandate from the date of instruction to 30 days after the auction. This covers us against any offers being submitted prior to Auction, and also gives us the opportunity to sell the property privately after the Auction if the auction price is not accepted for any reason.
Dales Bros Cluster Auctions
An alternative method is to include your property on one of our Dales Bros Cluster (Group) Auctions whereby we advertise and auction 10-15 properties collectively.
The Auction is conducted by professional auctioneers and electronic visuals of each property are presented (PowerPoint). Cluster auctions are generally held within a Dales Bros sales room or at an alternative and suitable up-market venue. Each property included in any one Cluster Auction is put up for Auction consecutively (one after another).
Dales Bros require a sole mandate from date of instruction to 30-days after the Auction, with a seventy two (72) hour confirmation period allowing you to consider any offers submitted. Most importantly we will only commit to auctioning the property if we are at least 80% sure the property will sell.
The Cluster Auction option does not necessarily offer a “spot light” on your property, as it is advertised and marketed together with other properties simultaneously. This is opposed to the conventional method of marketing and auction where one property is sold. This Cluster Auction process does however offer the seller the benefit of securing a sale from buyers in a room full of potential investors or suchlike - looking at your property together with the other properties going on Auction. Broader exposure to a base of strong buyers is thus the benefit.
Rules of Auction
Redlyn Business Park, 5 Riverhorse Place
Riverhorse Valley Durban
Dales Bros Estate Agents (Pty) Ltd
Cnr Underwood & Caversham Roads
- Rules of auction comply with section 45 of the Consumer Protection Act, Act 68 of 2008 (The Act) and with the Consumer Protection Act Regulations (The Regulations) that have been published in terms thereof in Government Gazette No. 34180 on 1 April 2011 (Volume 550) and any amendments thereto from time to time
- Section 45 Subsection (2) of the Act provides that : When goods are put for sale by auction in lots, each lot is, unless there is evidence to the contrary, regarded to be the subject of a separate transaction.
- The auction will commence at the published time and will not be delayed to allow any specific person or more persons to take part in the auction.
- A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in any other customary manner, and until that announcement is made, a bid may be retracted.
i) Notice is hereby given that the sale by auction is subject to a reserve price and confirmation thereafter by the seller or:
ii) a right to bid by or on behalf of the owner or auctioneer, in which case the owner or auctioneer, or any one person on behalf of the owner or auctioneer, as the case may be may bid at the auction
- A person who attends the auction to bid on behalf of another person must produce a letter of authority meeting the requirements of regulation 26 (3) in order to so bid on behalf of that person.
- The auctioneer undertakes to place all moneys into the trust account of the conveyances for the benefit of the purchaser upon confirmation of the sale of the property.
- An announcement will be made by the auctioneer during the course of the auction the reason for the auction unless that reason is the normal and voluntary disposal of goods by the owner.
9.1) All prospective buyers must register and at the auctioneer’s discretion, are required to pay a deposit at the prevailing rates to obtain a buyer’s number entitling him to bid.
9.2) Buyers bidding on behalf of companies, close corporations, partnerships, trusts or undisclosed principals, do so entirely at their own personal risk.
9.3) In the event of such company, close corporation, partnership, trust or undisclosed principal not ratifying any purchase, the buyer shall be personally liable in respect of such purchase.
9.4) Any buyer using the facility of a buyer’s card shall be responsible for all purchases made with such card, whether by himself or a third party
i) The bidders’ record contemplated in regulation 26 and the vendor roll contemplated in regulation 26(2) are available for inspection during normal hours without the charge of a fee and
ii) a statement indicating whether additional costs may be added and if so, how much such additional costs will be.
- The rules of auction will be signed by the auctioneer who is going to conduct the auction and he or she must certify that the rules of auction to the best of his or her knowledge meets the requirements of this regulation 21. If on the day of auction the auctioneer who signed the rules of auction as contemplated in sub regulation (5) is unavailable to conduct the auction, the auctioneer who then conducted the auction will be deemed to have so certified the rules of auction
- The rules of auction will be available to the general public at least 24 hours prior to the commencement of auction.
- That the auctioneer invites any person present to object to the rules of auction NOT being read upon, and nobody does.
14.1) The Auctioneer – Dales Bros Estate Agents (Pty) Ltd
14.2) The prospective buyer – any person who registers and attends the auction, whether to potentially buy on behalf of a company, close corporation, partnership, trust, an undisclosed principal or personally.
14.3) The buyer – any person who successfully bids for goods or a lot on behalf of a company, close corporation, partnership, trust, an undisclosed principal or personally.
14.4) Lots – a lot can be one property or a group of properties
14.5) Subject to confirmation – sold subject to the seller’s confirmation of the purchase price.
15.1) The Auctioneer acts in all respects only as an agent for and behalf of the seller.
15.2) The Auctioneer does not warrant the correct description, authenticity or title of any item and is not liable for any defect, error of description, whether quantative or qualitative, whether made before, during or after the sale, or whether made orally, or in writing in respect of any lot.
15.3) In the event of a negligent or fraudulent misrepresentation by the seller to either the Auctioneer or the buyer, the Auctioneer shall be entitled to cancel the relevant sale, and refund the purchase price in respect thereof to the buyer. However, if the Auctioneer has already paid out the seller, the buyer must seek relief from the seller.
15.4) The buyer’s right of redress lies solely against the seller. The seller has indemnified the Auctioneer against all loss, damages, claims and costs (including costs on an attorney and own client sale) made against the Auctioneer of which the Auctioneers incur or suffer arising out of or in connection with any act or omission on the part of the seller.
15.5) The person making the highest bid for any lot shall be the buyer thereof, subject always to any further conditions announced by the auctioneer (eg. Conditions making the bid “subject to confirmation” or a reserve price).
15.6) The Auctioneer shall have absolute authority in settling any dispute that arises between 2 or more bidders. The Auctioneer may, at his sole discretion, settle such dispute by declaring any one of the bidders the buyer, or by placing the lot up once again for auction, or by any other means that the Auctioneer in his sole discretion, considers expedient. The Auctioneer’s decision is final.
15.7) The Auctioneer shall in his sole discretion be entitled to determine the minimum amount of each bid.
15.8) No person shall retract his bid once it has been made.
15.9) The Auctioneer shall have the authority to refuse any bid and to withdraw any lot.
15.10) The seller and/or Auctioneer shall be entitled to place a reserve on any item, or to make any sale subject to the seller’s confirmation.
15.11) The Auctioneer may bid on behalf of the seller and a prospective buyer.
15.12) In the event of offers being received which in the opinion of the Auctioneer are not satisfactory, the auctioneer reserves the right to sell the lot concerned subject to the seller’s confirmation. If the Auctioneer has not received such confirmation within the stipulated period, the offer shall automatically lapse and be of no force or effect.
15.13) Verification of the confirmation shall be the responsibility of the buyer.
15.14) All lots are sold without duty to repair by the seller. Buyers must acquaint themselves prior to the sale as to the condition, identity and authenticity of the property, and should exercise and rely on their own judgment as to whether the lot accords with its description or not.
15.15) The Auctioneer’s vendor roll shall be conclusive proof of the amount of the final bid and is binding on the buyer.
PAYMENT & REMOVAL
16.1) Immediately any lot is knocked down, and a buyer declared, the buyer shall pay the Auctioneer by bank guaranteed cheque or by other means acceptable to the auctioneer, the purchase price which shall consist of the amount of his final bid (knock down price), plus the buyer’s commission, plus VAT on the commission, plus VAT on the knock down price (if applicable) all of which shall be at the prevailing rate on the day of payment.
16.2) Lots on which VAT is payable by the buyer on the knockdown price are announced by the Auctioneer. The prevailing rate on the day of payment will be applicable.
17.1) In the event that a buyer fails to pay the full purchase price for the lot within the prescribed time, or fails to comply with any other term of the sale, the Auctioneer shall retain a possessory lien on all of the buyer’s goods in the possession of the Auctioneer. The Auctioneer may, without notice to the buyer, re-sell the lot or goods in possession of the Auctioneer either by public auction or private treaty, at the risk of the buyer. The buyer shall bear all the expenses incurred by such re-sale including but not limited to the Auctioneer’s collection charges, any attorney and client charges and interest that has accrued on the outstanding amount. Interest on all outstanding amounts shall be calculated at 3% above the prevailing prime overdraft rate as set by the Reserve Bank on the whole amount due from the date of sale to the date of payment.
17.2) In the event of the purchase price in respect of the re-sale of the lot being less than the purchase price offered by the buyer, the buyer shall be liable to make payment of such difference on demand. 17.3 In the event of a default payment and a deposit having been paid by the buyer, such deposit shall be forfeited.
18.1) Every person on the Auctioneer’s premises at the same venue before, during or after a sale is there at his own risk, and he shall have no claim against the Auctioneer in respect of any damage he may sustain through any cause whatsoever.
18.2) The Auctioneer complies with all the applicable laws and regulations governing auctions. 183 Should the Auctioneer elect to institute proceedings in the High Court, the parties consent to the jurisdiction of the Durban and Coastal Local Division.
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REDLYN BUSINESS PARK, 5 RIVERHORSE PLACE, LOWER GROUND 1 - 5, RIVERHORSE VALLEY, (OFF QUEEN NANDI DRIVE)
Pinetown Receiving Depot
CNR UNDERWOOD AND CAVERSHAM ROADS. PINETOWN
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