Guide to Buying and SellingA Brief Guide to Buying & Selling by Auction
Buying by Auction really is quite simple, but you do need to be aware of the possible pitfalls.
Once you have seen a Lot (property to be sold by Auction) that interests you and decide that you would like to bid on that particular Lot, then the next step is to review the respective Searches and the Preliminary Agreement provided by the Auctioneer. The Auctioneer or his office carry no responsibility for the veracity or the correctness of the Searches, therefore it is recommended and it is your responsibility to check the veracity and correctness by setting an appointment with either the Notary that has carried out the Searches or seek independent legal advice. Once you are satisfied with the legal, notarial and other aspects in regards to the said Lot, including such other matters as building permits, make sure that your finances are in place and get a certified cheque from your bank to cover the initial Deposit and Administration Fee.
On the day of the Auction you would need to register with the Auctioneer’s assistants indicating your intentions to bid in the Auction. To help in making you more familiar with the normal Auction Procedures, more detailed information is listed below .
If you would like any particular point clarified then do call us on (356) 21388402.Guide Prices
The Guide Prices are the parameters which we believe the Lot may achieve, although by the very nature of the entries, actual sale prices may be higher or lower depending on the demand. The Guide Prices are given in good faith, and may be changed at any time leading up to the Sale. The Reserve Price (the lowest price that the Lot can be sold for) given to us by the Vendor, is confidential between the Vendor and Auctioneer and cannot be disclosed.Viewings
We arrange ‘block’ viewings at specific times for each lot. Negotiators have tight schedules, so those arriving late at a confirmed appointment may only have a limited viewing time. You will understand that delays put whole schedules out for the rest of the day, thereby disrupting subsequent appointments. A confirmed booking is required for each viewing and we do not guarantee to attend block viewings where appointments to view have not been confirmed by prospective Purchasers. Viewings of all tenanted properties are strictly by appointment and will be by courtesy of the tenants at times convenient to them. All tenants are under strict instructions not to allow unauthorised viewings and interested parties are asked to respect their privacy at all times.Professional Assistance
If you are intending to bid you are advised to obtain professional independent advice from your Lawyer/Notary. Financial arrangements must be arranged before the date of the Auction and any valuation/survey if required by the bank should be completed before you bid. We can help you with your valuation.
Prospective Purchasers are required to make all their own investigations to satisfy themselves as to the condition of all Lots and must read all pre-contracts including the Preliminary Agreement prior to bidding. We remind you that you must understand that if you are the successful Purchaser, then the Preliminary Agreement is binding on the fall of the hammer. The Preliminary Agreement is to be signed immediately after the auction.Legal Documentation
All legal documentation supplied to us, including Special Conditions of Sale, Leases, Plans, Planning Permissions, Title details and Searches will be available for inspection at the Auctioneer's Office by prior arrangement and in the Auction Room before the Sale. The Special Conditions of Sale, Searches and other documentation will be dispatched upon request upon pre-payment of the appropriate copying charges, which are dependent upon the size of the individual packages. If documentation is unavailable at the time of your call we will contact you again when received. Please contact us on (356) 21388401 or search on our website www.maltapropertyauctioneers.com for further information.
All the legal documents and permits have been supplied to us by our Notary, Lawyers or Vendors. The Auctioneer or his office carry no responsibility for the correctness of such documents and you are strongly advised to seek independent advice on the contents. If you are attending the Auction we would also advise you to review the documents in the Sale Room prior to bidding.
Power Of Attorney: Although we strongly advise prospective Purchasers to attend the Sale, were a Prospective Purchaser can not attend the Auction then a Notarized Power Of Attorney given to a third party assigned by the Prospective Purchaser must be presented on registration at the Auction. For last minute emergencies we can help by providing Notarial assistance.Deposits
The Deposit payable by the successful Purchaser which becomes due on the fall of the hammer, amounts to 10% of the bid/purchase price. This will be paid in the following manner:
A) Prospective Purchasers should ensure that they bring a Bankers Draft and a cheque book to the Sale Room to cover their maximum bid. The Bankers Draft to be brought by the Purchasers must be of a minimum value of 10% of the LOWER suggested Guide Price, without such bankers draft/s the potential Purchaser will not be registered and therefore will not have the right to bid on any of the lots.
B) If the value of the Bankers Draft is lower than 10% of the actual Purchase Price then a further payment for the difference is to be paid by the purchaser, on the signing of the Preliminary Agreement after the Auction. Only in this case would a personal or company cheque be acceptable by the Auctioneer.
Bank drafts as well as cheques should be made payable to "Malta Property Auctioneers Ltd".
We have a primary duty to our Clients (the Vendor/s) and reserve the right to immediately re-offer any Lot if the deposit conditions are not strictly adhered to in accordance with our Conditions of Sale.Administration Fee
An Administration Fee of six hundred euro (€600) is payable on each lot purchased, at the same time as the payment of the deposit on each Preliminary Agreement. In the event of non-payment, a deduction of €600 will be made in favor of the Auctioneer from the amount paid by the purchaser. The balance will then be applied to the deposit which is due on the Preliminary Agreement.Pre Auction Offers
The Auctioneer reserves the right to present offers received before the Auction Date to the Vendor. Only pre-Auction offers substantially ABOVE the top Guide Price will be submitted to our Clients. Pre-Auction offers will only be considered if the property has been viewed and the legal papers inspected. Pre-Auction bids will be considered solely on the basis of an immediate signing of the Preliminary Agreement and acceptance by the Vendor, with the Purchaser providing the full deposit and Administration Fee.Withdrawn or Sold Lots
It is possible that a lot is withdrawn or sold prior to the auction: therefore we recommend that any interested parties call our office 48 hours before the auction to ensure that the Lot is still being auctioned on the auction day.The Auction Day
Arrive in plenty of time and register yourself as a recognized bidder. Read the Addendum (changes that might be made on the Lots) and view any last minute documentation. Hear the opening announcements - they may affect your decision to purchase. The Auctioneer will be in attendance one hour before the Auction. Questions are not invited during the Auction but last minute information can be obtained from the Auctioneer’s Assistance while the Sale is in progress.
Listen carefully to the Auctioneer's opening remarks and, if you are not interested in the first few Lots, watch the way in which the Auction is conducted. Bid briskly by raising your Bidding Number so that the Auctioneer can see you clearly - leave winking and nodding to the professionals!
On the fall of the hammer the highest Bidder above the Reserve Price is contracted to buy. They will be immediately approached for their Deposit and Administration Fee and should sign the Preliminary Agreement before leaving the Room.Registration
In compliance with the Money Laundering Act all potential Purchasers are required to register their details before bidding. At registration you will need to provide an I.D Card or Passport giving the full names and address of the Purchasers, Bidders details (if these are different from the Purchaser) and Solicitor/Legal Representative. You will also be asked to confirm your method of payment of the Deposit and the Administration Fee.
Free Registration takes place at the Auction, where you will be allocated a personal Bidding Number which will enable you to bid. The Auctioneer reserves the right to sell to the Underbidder if the highest Bidder is unregistered or cannot comply with the deposit requirements.
After the Auction
A list of unsold Lots will be available after the Auction stating the minimum price at which that Lot can now be bought. Offers will be submitted on the basis of an immediate signing of the Preliminary Agreement upon acceptance by the Vendor.Final Deed of Sale
The Final Deed Of Sale will be signed by no later then 30 days from the signing of the Preliminary Agreement or the date stipulated thereon.
Only with the Vendors approval, in the case were a foreigner purchases the Lot and an AIP Permit is necessary, The Final Deed Of Sale will be signed within 60 days from the signing of the Preliminary Agreement or the date stipulated thereon. In this case the Foreign Prospective Purchaser of the Lot is to inform the Auctioneer or his office of his intentions to bid, at least 48 hours prior to the Auction.Finally
Good luck on the day and if you are unsure about any aspect of buying or selling then do call our office at -
Tel: (356) 21388402 Mob : 79797956 Mob : 99493899 Fax : 21388403