Frequently Asked Questions
1. "Can I submit an offer before / after the Auction?"
Yes! Speak to your broker! If your offer is accepted prior to Auction, the Auction may be withdrawn.
2. "Can I get a bond for real estate purchased on Auction?"
Yes. However, auctions are non-suspensive transactions and as such your offer at an auction sale is NOT subject to your obtaining a bond. Should you wish to obtain a bond, this is acceptable, however it is worth repeating that the sale is not subject to your obtaining finance. If, for any reason you are not granted a bond, or do not qualify for the amount to which you have bid, you will still be held liable and responsible to fulfil all your obligations in terms of the agreement signed at the auction.
3. When must I pay the Deposit and Buyer's Premium (Auctioneer's Fee)?"
The Down Payment, comprised of a 3.5% Deposit of the Bidder's Price as well as the Buyer's Premium, are payable immediately on the fall of the gavel, regardless of whether the sale is subject to confirmation. These monies are payable upfront and immediately, and cannot form part of any financing that you may have applied for.
4. "When is the balance of the Purchase Price due?"
Guarantees for the balance of the Purchase Price (comprised of the Bidder's Price plus Buyer's Premium) are due 21 days after acceptance of the offer by the seller.
5. "Can I bid on behalf of another person or entity?"
It is possible to bid on behalf of another person or entity. However, the person who bids on behalf of any other entity will be required to sign personal surety on the Auction day. Should the person or entity or any other nomination not be able, for whatever reason, to take transfer of the property, then the person who bids at the auction will be deemed the Purchaser and will become responsible for all the terms of the Auction Sale Agreement.
6. "Are there reserve prices at Auctions?"
Yes. All properties sold by FIRZT Auctions are sold with an undisclosed reserve price. If the reserve price is not met, the sale is subject to confirmation by the seller within 3 business days. If the reserve price is met the property is sold on the fall of the gavel. When a property is sold subject to confirmation, it is a formality to protect sellers and creditors from having secured assets being sold below their market value.
7. "Do I need to register in order to bid at an Auction, or can I just bid?"
Yes, you do need to register in order to bid. You will be required to present your FICA information and fill in a Registration Form. You will then be allocated an exclusive Bidder's number. The auctioneer will not accept a bid from you unless you produce your Bidder's Card number.
8." Do I need to pay a deposit in order to register to bid?"
Only online or telephonic bidders are required to pay a refundable deposit. The registration deposit is of course refundable to you if you are unsuccessful in your purchase, or if you choose not to bid.
9. "What happens if I default on the sale?"
The seller will reserve his/her/their right to take the necessary legal action against you should you be in breach of contract, i.e. fail to fulfil any of your obligations in terms of the Auctions Sale Agreement. They can exercise their various options, which will be stipulated in the contract. Ultimately you will be held liable and responsible to fulfil your obligations. Should you still remain in breach of contract, all monies already paid by you to the auctioneer and/or seller will be forfeited as "roukoop" (pre-estimated damages). It is very serious to go into breach after an auction and legal action may be taken. If you harbour any uncertainty, it is preferable not to bid.
10. "What does "STC" mean (Subject to Confirmation)?"
Properties are sold STC as they might be encumbered to a secured creditor, so confirmation will be obtained within 3 business days. During this period you are held bound by your offer and will be advised by your broker whether the offer is accepted or not. The Down Payment i.e. 15% of the Bidder's price (made up of a deposit of 3.5% of the bidder's price as well as the Buyer's Premium) is required immediately after the Auction nonetheless. Should the sale for any reason not be confirmed you will be immediately refunded in full.
11. When does the property become my risk?"
The property becomes your risk from the date of possession as stipulated in the Auction Sale Agreement. This is usually the date of registration of transfer, approximately 2 - 3 months after the sale.
12. What recourse do I have if my purchase is not to my satisfaction after the auction?"
Purchasers bidding on items at an auction acknowledge that they have familiarized themselves with the property for which they are bidding. All properties are sold "voetstoots" and the bids are made in public. Therefore, there is no recourse if you have made a mistake and bid for the wrong property or discover later that you are not satisfied with your purchase. Once you have bid, you are bound and you will subsequently be required to pay in full for the asset that you have purchased. Remember to inspect the Disclosure Document that is attached to the property's Bidder's Pack. This is a signed off disclosure by the Seller of all patent and latent defects in the property that they are aware of.
13. As the seller, how much can I expect to achieve at the Auction? What if I don't get offered what I want, do I have to sell?" The best answer is "Fair Market Value."
No-one knows what price will be achieved until the Auction is over. Through our extensive marketing campaign, we ensure your property is showcased to as many potential buyers in the marketplace as possible. You, as the seller, reserve the right to reject the final offer on condition that the reserve price is not met.
IMPORTANT TIP FOR BIDDERS!
Remember, once the gavel goes down, the deal is effectively sealed if the reserve price is met. We suggest you stick to your budget once you've settled on an amount. Remember to take into account our Buyer's Premium plus VAT, that is added on top of your Bid price. It's easy to get swept up in the excitement of the auction.