BUYING ON AUCTION

Buyer's Education

In this section you will find information on why you should buy property and assets on auction, how it works and what you need to do. For a brief overview of this information, watch our Auction Introduction video. This video is played before all our auctions country-wide.

Why Buy on Auction

Internationally, auctions are invariably the first choice way of buying property, and are fast becoming the preferred method of buying property in South Africa. And that's because they offer buyers so many advantages. They're a quick, efficient, and uncomplicated means to buying property. Here are just a few reasons why you should make your next purchase on auction:

• Auctions are quick

   

   

  When you buy on auction it's instant and it's efficient. There are no lengthy waiting periods and no back-and-forth or behind the scenes discussions and negotiations between buyers and sellers. In fact purchases are very often confirmed on the spot, so there's no time wasted!

• Auctions are transparent

   

   

  An auction is open and completely transparent, meaning there are no hidden clauses, terms or conditions, so there's a far lesser likelihood of sales falling through. They're also 'real deals' and reflect real market value based on public demand and nothing else.

• Auctions are certain

   

   

  Buying on auction is a certain way of securing a purchase. The sellers are certain and always serious about selling, so more often than not a deal will be done. Auction sales confirmation rates are much higher than other methods of sale, which is a great upside for buyers.

• Auctions are opportune

   

   

  Auctions are conducive to bargains. If you're in the right place at the right time you can snap up rare and once-off opportunities on the spur of the moment, that you'd never find anywhere else! Great deals are common when buying on auction!

• Auctions are exciting

   

   

  Buying on auction can be thrilling and exciting. It all happens on the day and on the spot and there's always a buzz. Once you've bought on auction, you'll never look back!

Why buy with Alliance

Even though we are South Africa's largest auction group, we think of every client as an individual partner. No other auction house can offer you our level of expertise across asset classes, or general industry experience. If you're buying on auction, you've got more than just a few good reasons to choose us as your partner in the investment or acquisition process:

• We're the industry experts

   

   

  With five independently operated divisions we've established a world-class team of experts, across every asset-sales discipline. Mostly trained from within Auction Alliance, our people are energised, focused and always professional. This means that you're assured of the highest and most professional level of service that the industry has to offer.

• South Africa's largest auction group

   

   

  We're the biggest auction group in the country, operating nationally with the largest volume and value of auctions. As a buyer you'll be assured of the widest variety of stock to choose from, so there's every chance we've got what you're looking for.

• High sales confirmation rates

   

   

  Our overall rate of sales confirmations remains impressively high. As a buyer your chances of securing a sale are highly likely when buying at our auctions. We continue to break records and set new standards and have been connecting buyers and sellers across continents for almost two decades.

• Our value added services

   

   

  We were the pioneers of both multiple and online auctions in South Africa and continue to be at the forefront of industry innovations. We have an array of value-added services, specially designed for buyers, that make buying on auctions that much simpler and easier.

• We put our clients first

   

   

  Auctions last a few minutes, but relationships last a lifetime. And with our client-centric approach we'll always put you first. What's more is that over the years we've maintained a rock-solid network of clients and suppliers, so when you choose us you gain access to a wide spectrum of experts, entrepreneurs, and industry professionals.

How it works

Information on all current and future auctions can be obtained here at www.auction.co.za. Here you have access to the online brochure and information about 2-3 weeks prior to an auction sale. In addition, by registering with us you will receive regular reminders and alerts regarding our auction sales.

Be sure to review the information provided for each property as details vary per property. Remember to carefully read through the Conditions of Sale as these may also vary from sale to sale.

Please be sure to let us have your contact details should you be interested in a property so that we can contact you in the event that further information becomes available.

• Obtain documentation

   
  Sale pertaining to the particular property on which you are
  planning to bid, as well as investigate the property in terms
  of Local Authority documents and other pertinent documents,
  which will be made available to you in the form of a Bidder's
  Information Pack, on request.
  A Bidder's Information Pack is available from our offices 2-3
  weeks prior to the scheduled auction date. This pack includes
  legal and official documents such as the Conditions of Sale, Site

  
  It is critical that you familiarise yourself with the Conditions of Sale pertaining to the particular property on which you are planning to bid, as well as investigate the property in terms of Local Authority documents and other pertinent documents, which will be made available to you in the form of a Bidder's Information Pack, on request.

  A Bidder's Information Pack is available from our offices 2-3 weeks prior to the scheduled auction date. This pack includes legal and official documents such as the Conditions of Sale, Site Diagrams, Title Deeds, Site Plans, Zoning Certificates, Lease Agreements and Rental Schedules. These information packs will assist you in making an informed decision as to which properties to buy. Please note that the information supplied in these packs is supplied to Alliance Group by the Seller and the Local Authorities.

• View the property

   

   

  If you are interested in bidding on a specific property, it
  is best that you arrange to view the property before the
  auction day. The advertisement will clearly state whether
  a specific date and time has been set aside for viewing of
  the property or whether viewing is by appointment. You will
  be afforded the opportunity at the viewing to pre-register
  for the auction. This assists you with not having to queue
  to register on the auction day. You will be asked to pay a
  refundable registration fee by cheque in order to register
  for the auction. A Bidder's Card cannot be issued until this
  registration deposit is paid. If you are buying on behalf of
  another person or on behalf of another entity (company,
  close corporation or trust), you will still be required to
  register in your personal capacity. However, on signature
  of the auction contract at the end of the auction, you will
  be required to show proof of your authority to bid on
  the third party's behalf. If no such authority is available
  and acceptable to the Auctioneers, then you will have to
  register in your personal capacity. It is important that you

  acquaint yourself with the property

  as all properties are

  If you are interested in bidding on a specific property, it is best that you arrange to view the property before the auction day. The advertisement will clearly state whether a specific date and time has been set aside for viewing of the property or whether viewing is by appointment.

  You will be afforded the opportunity at the viewing to pre-register for the auction. This assists you with not having to queue to register on the auction day. You will be asked to pay a refundable registration fee by cheque in order to register for the auction.

  A Bidder's Card cannot be issued until this registration deposit is paid. If you are buying on behalf of another person or on behalf of another entity (company, close corporation or trust), you will still be required to register in your personal capacity.

  However, on signature of the auction contract at the end of the auction, you will be required to show proof of your authority to bid on the third party's behalf. If no such authority is available and acceptable to the Auctioneers, then you will have to register in your personal capacity. It is important that you acquaint yourself with the property as all properties are sold "voetstoots" ("as is").

• Arrange finance

   

   

  Auction sales are entirely non-suspensive on property finance and, as such, it is important that you make the necessary arrangements to obtain finance on the property prior to the auction day. You will be required to make payment of the deposit on your bid price, as well as the Auctioneer's commission, immediately on the fall of the hammer, and will thus need to have access to this cash immediately.

  Furthermore, the balance of the purchase is due on registration of transfer, but you will need to present your guarantee of funds to the Seller's Attorney within a stipulated timeframe. Should you require finance, contact one of our Business Development Managers or our Finance division.

  and, as such, it is important that you make the necessary
  arrangements to obtain finance on the property prior to
  the auction day. You will be required to make payment of
  the deposit on your bid price, as well as the Auctioneer's
  commission, immediately on the fall of the hammer, and will
  thus need to have access to this cash immediately. Furthermore,
  the balance of the purchase is due on registration of transfer,
  but you will need to present your guarantee of funds to the
  Seller's Attorney within a stipulated timeframe. Should you
  require finance, contact one of our Business Development
  Managers or our Finance division.and, as such, it is important that you make the necessary
  arrangements to obtain finance on the property prior to
  the auction day. You will be required to make payment of
  the deposit on your bid price, as well as the Auctioneer's
  commission, immediately on the fall of the hammer, and will
  thus need to have access to this cash immediately. Furthermore,
  the balance of the purchase is due on registration of transfer,
  but you will need to present your guarantee of funds to the
  Seller's Attorney within a stipulated timeframe. Should you
  require finance, contact one of our Business Development
  Managers or our Finance division.

• Proxy / Telephone bidding

   
  We highly recommend that you make every effort to attend
  the auction sale or get a representative to do so. However,
  if you are truly unable to attend the auction but still wish
  to submit a bid, you may register by means of a Proxy Bid.
  This is a form that is to be completed by you and sent to
  our offices, together with a certified copy of your identity
  document, as well as payment of 16.4% of your bid price
  into our Trust Account. This is a security precaution, and the
  amount is fully refundable on an unsuccessful bid.

  We highly recommend that you make every effort to attend the auction sale or get a representative to do so. However, if you are truly unable to attend the auction but still wish to submit a bid, you may register by means of a Proxy Bid. This is a form that is to be completed by you and sent to our offices, together with a certified copy of your identity document, as well as payment of 16.4% of your bid price into our Trust Account. This is a security precaution, and the amount is fully refundable on an unsuccessful bid.

• Understand all terms and conditions

   
  It is imperative that you obtain a copy of the final Conditions of
  Sale prior to bidding on auction in order to familiarise yourself
  with all terms and conditions, as your bid is legally binding
  and you may therefore, not retract a bid after the fact.

  
  It is imperative that you obtain a copy of the final Conditions of Sale prior to bidding on auction in order to familiarise yourself with all terms and conditions, as your bid is legally binding and you may therefore, not retract a bid after the fact.

At the auction

It is important to remember to bring the following things with you to a physical auction:

• Your Identity Document or Passport
• Your bidder's deposit
• Your pre-registration information (if you registered online ahead of time)

• Registration

   
  As aforementioned you will need to register as a Bidder, if you
  have not already done so at the property viewing. You will be
  required to fill in a Buyer's Registration Card, and will be asked
  to sign acknowledgement of the Conditions of Sale. You will also
  be asked to pay a refundable registration fee in order to register
  and provide the necessary authorities as previously mentioned.
  Your Buyer's Registration Card is numbered and this number
  is then allocated to you as a Bidder and is only valid for the
  duration of that auction. It is important that you safeguard
  this card at all times in order to prevent another person from
  bidding on your number, as, in terms of law, your bid is a
  legal, verbally binding contract with the Seller and Auctioneer.

  
  As mentioned you will need to register as a Bidder, if you have not already done so at the property viewing. You will be required to fill in a Buyer's Registration Card, and will be asked to sign acknowledgement of the Conditions of Sale. You will also be asked to pay a refundable registration fee in order to register and provide the necessary authorities as previously mentioned.

  Your Buyer's Registration Card is numbered and this number is then allocated to you as a Bidder and is only valid for the duration of that auction. It is important that you safeguard this card at all times in order to prevent another person from bidding on your number, as, in terms of law, your bid is a legal, verbally binding contract with the Seller and Auctioneer.

• Conditions of sale amendments

   
  The Auctioneer will announce any amendments to the terms
  of the sale, if any. Sometimes there may be alterations to the
  Conditions of Sale and you should obtain the latest copy at
  the auction, so that you are fully acquainted with any changes.
  Furthermore, the Auctioneer will make an announcement if there
  are any amendments or alterations to the Conditions of Sale.

  
  The Auctioneer will announce any amendments to the terms of the sale, if any. Sometimes there may be alterations to the Conditions of Sale and you should obtain the latest copy at the auction, so that you are fully acquainted with any changes.

  Furthermore, the Auctioneer will make an announcement if there are any amendments or alterations to the Conditions of Sale.

• Questions

   
  There will be time to ask questions prior to the auction. During
  the auction, a public question and answer session will not be
  facilitated as it holds up the sale process and is difficult in a large
  auction environment. Registered Bidders can privately ask any
  questions, at any stage during the auction process from company
  representatives who will be on the auction floor to assist. Please
  indicate to the Auctioneers' assistants should you have any enquiries
  and they will willingly come over to you.

  
  There will be time to ask questions prior to the auction. During the auction, a public question and answer session will not be facilitated as it holds up the sale process and is difficult in a large auction environment. Registered Bidders can privately ask any questions, at any stage during the auction process from company representatives who will be on the auction floor to assist.
  
  Please indicate to the Auctioneers' assistants should you have any enquiries and they will willingly come over to you.

• Pre-briefing auction education

   
  A Buyer Education Seminar is held 45 minutes prior to each
  Renaissance Multiple Auction Event, facilitated by a senior
  member of our team, with the intention of providing a platform for
  first-time buyers to have the bidding process explained to them in
  detail, also affording them the opportunity to ask any questions
  regarding the general auction process.

  
  A Buyer Education Seminar is held 45 minutes prior to each Renaissance Multiple Auction Event, facilitated by a senior member of our team, with the intention of providing a platform for first-time buyers to have the bidding process explained to them in detail, also affording them the opportunity to ask any questions regarding the general auction process.

  The aim of this seminar is to further make the auction process as transparent as possible as well as to accommodate our Bidders so they are able to fully benefit from the auction experience without any intrepidation.

• Bidding

   
  Please make sure that you know which property (lot number) you
  are bidding on. An Order of Sale sheet will be available. The
  sale moves at a relatively quick pace. Make sure that you make
  adequate contact with the Auctioneer or assistants so that your
  bid gets acknowledged.

  
  Please make sure that you know which property (lot number) you are bidding on. An Order of Sale sheet will be available. The sale moves at a relatively quick pace. Make sure that you make adequate contact with the Auctioneer or assistants so that your bid gets acknowledged.

• Signing the Conditions of Sale

   
  When you have successfully won a bid, you will be ushered to the
  Buyers Lounge, where you will be asked to sign the Conditions of
  Sale. Should you be interested in bidding for further properties
  or want to see the rest of the auction, you are welcome to do so
  and advise an Alliance Group team member who will get your
  details, the moment the property has been knocked down to you.

  
  When you have successfully won a bid, you will be ushered to the Buyers Lounge, where you will be asked to sign the Conditions of Sale. Should you be interested in bidding for further properties or want to see the rest of the auction, you are welcome to do so and advise an Auction Alliance team member who will get your details, the moment the property has been knocked down to you.

• Auctioneer's commission

   
  After the property has been knocked down to you, you will
  also be asked to pay the Auctioneer's Commission plus VAT,
  as well as a deposit on the purchase price of the property.
  We regret that cash payments are not permitted in terms of
  current FICA Law. Please remember the Auctioneers' commission
  when you are bidding and that it is payable over and
  above the purchase price.

  
  After the property has been knocked down to you, you will also be asked to pay the Auctioneer's Commission plus VAT, as well as a deposit on the purchase price of the property. We regret that cash payments are not permitted in terms of current FICA Law. Please remember the Auctioneers' commission when you are bidding and that it is payable over and above the purchase price.

• V.A.T.

   
  Prospective buyers should ascertain whether VAT is payable on
  the purchase price prior to the auction.

  
  Prospective buyers should ascertain whether VAT is payable on the purchase price prior to the auction.

• At the end of the auction

   
  Once the contract is signed and your payment is made, you are
  free to leave, and will be contacted by the Seller's attorney with
  regard to the conveyancing procedure.

  
  Once the contract is signed and your payment is made, you are free to leave, and will be contacted by the Seller's attorney with regard to the conveyancing procedure.

FREQUENTLY ASKED QUESTIONS

Below are just a few frequently asked questions from some of our customers.

• Can I submit an offer prior to the auction sale?

   

   

  Yes you can. By using the "BID NOW" feature on our new website you can submit on offer prior and post auction. All offers / bids are subject to Seller confirmation, and if your bid is not accepted prior to auction, it will be used as the opening bid. For more information on this, contact 0861 ALLIANCE.

• 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.

• When must I pay the deposit and auctioneer’s commission?

   

   

  The deposit and auctioneer's commission are payable immediately on the fall of the hammer, 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.

• When is the balance of the purchase price due?

   

   

  The balance of the bid price is due on registration of transfer in the case of a Real Estate purchase. In the case of movable assets, the balance is payable immediately on conclusion of the auction and no goods may be removed until full payment is received for them.

• 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 agreement of sale

  For more information on this, see our Proxy BID page under our services.

   

• Are there reserve prices at auctions?

   

   

  Lots at auctions are sold with no reserves, but may be subject to confirmation by the Seller within a certain time period, more often than not on the same day as the auction takes place. Lots at Sales in Execution are sold on the fall of the hammer without any confirmation period, and with no reserve. When a lot is sold subject to confirmation, this is not a reserve, but merely a formality to protect sellers and creditors from having secured assets being sold well below their market value.

• Do I need to register in order to bid on an auction, or can I just bid?

   

   

  Yes, you do need to register in order to bid. You will be required to fill in a Bidder's Card and you will be allocated an exclusive Bidder's number. The auctioneer will not accept a bid from you unless you produce your Bidders Card.

  You can now pre-register for auction events on our website.

• Do I need to pay a deposit in order to register to bid?

   

   

  Yes. You are required to pay a refundable deposit in order to register at an auction. The deposit amount required for registration will appear in the auction advertisements. The registration deposit is always refundable to you.

• What happens if I default on the sale?

   

   

  The seller will reserve his/her right to take the necessary legal action against you should you go be in breach of contract or fail to fulfill any of your obligations in terms of the Conditions of Sale. They can exercise their various options, which will be stipulated in the Conditions of Sale. Ultimately you will be held liable and responsible to fulfill 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 "rouwkoop" (pre-estimated damages). It is very serious to go into breach after an auction and legal action will be taken. Therefore if you harbour any uncertainty, it is better not to bid.

• What happens if an item is sold to me STC (Subject to Confirmation)?

   

   

  Items sold STC are usually encumbered to a secured creditor and confirmation will be obtained within the time frame specified at the auction. During this period you are held bound by your offer and will be advised by an Auctions staff member as to whether the offer is acceptable or not. Payment is required immediately after the auction sale nonetheless. Should the sale for any reason not be confirmed you will be immediately refunded.

• When do the movable assets or real estate become my risk?

   

   

  The assets become your risk from the date of possession as stipulated in the Conditions of Sale. If possession is given on confirmation or the fall of the hammer then you will be responsible for the assets and be required to arrange suitable insurance and storage from that date.

• 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 familiarised themselves with the items for which they are bidding . All items 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 items or discover later that you are not happy with your purchase. Once you have bid, you are bound and you will subsequently be required to pay in full for these assets and remove them from the venue.