FAQs

The world of property auctions can sometimes seem a little daunting, here is a list of frequently asked questions to help you out. Also, feel free to ring us on 01633 254044 if you have any further queries.

+ What is a vendor?

The vendor is the person or organisation selling a property or plot of land. The vendor is also the agent or auctioneer’s client and the person to whom the agent/auctioneer is responsible to.

+ What is a reserve price?

A reserve price is the lowest price the vendor will accept. The existence of a reserve price will be disclosed but the amount of the reserve will not. Reserve prices are usually set just a few days before the auction.

+ What is a guide price?

Guide prices are neither an opinion of value of the property nor an exact figure of where the reserve price will be set. They may be set at, above or below the reserve price but in accordance with RICS guidelines they are normally within 10% of the reserve. The guide price may change in the run up to an auction so buyers should contact the auctioneer to check prior to the sale.

+ Should I obtain a catalogue?

Yes. The catalogue contains details of the property and the General Conditions of Sale and you should take the time to read these carefully. Buyers can either download an electronic copy or have a hard copy sent out in the post.

+ Can I inspect the property before the auction?

Viewings are normally undertaken on set dates at our special open house viewing days. A list of our viewings can be found via our AUCTIONS PAGE. Viewers are asked to book in to viewings in advance. Viewings may be booked electronically or by telephoning the office. The purpose for asking people to book in is so that we have a record of viewers but also so that we can contact all parties in the event of delays/cancelation etc.

+ What if I need finance?

It is essential that you have all necessary funding in place for the day of the auction. If you need finance to purchase a property (if you do not have all of the money), you can arrange finance either through a traditional lender although this may take too long, or you can use a short-term bridging company. Together is one such company that has experience of providing such finance with very fast turnaround times.

+ Do I need a survey?

A survey is only mandatory if you require a mortgage. However, we recommend that you ask a chartered surveyor to undertake a survey on your behalf before buying any property or at the very least you take a reputable builder to assess the property.

+ What is a legal pack?

A legal pack will be prepared by the solicitors acting for the sellers of a particular property. Every property being sold will have a legal pack and without one the property cannot be sold. The legal pack contains relevant legal information to allow buyers to do their due diligence. Information should include title documents (ownership, boundaries etc.), searches, planning consents, fixtures and fittings lists and potentially much more. We strongly advice interested parties to obtain a copy of the legal pack which can be downloaded via a link on the individual property on the website or by telephoning the auctioneers.

+ Should I contact a solicitor?

Yes. Let your solicitor have a copy of the auction catalogue, he/she may wish to contact the Auctioneer and the Vendor’s solicitor on your behalf. You should also ensure that your solicitor inspects the legal pack/s for any property/s that you are interested in. If you do not have a solicitor we can recommend one to you. An independent solicitor is always present at the auction and they can give you an opinion on a legal pack if you require it.

+ Can the catalogue details change?

There are sometimes amendments to auction catalogues such as tenancy details. Mistakes can also be made in relation to information provided on properties in the catalogue. In the run up to the sale any mistakes or amendments are noted on an addenda sheet which is updated on a regular basis. This sheet can be viewed on the website or a copy obtained from the auctioneers. On the day of the auction a final addendum sheet is produced and distributed.

+ Can properties be sold or withdrawn prior to auction?

Properties do sometimes sell prior to auction or occasionally are withdrawn. These are also shown on the addendum sheet. You should check with Paul Fosh Auctions on the day of the auction to confirm that the lot in which you are interested is still being offered prior to travelling.

+ How do I bid at auction?

When your lot comes up our Auctioneer will confirm the address, the lot number and any last minute details or addenda. Make sure you are bidding for the correct property! You can bid by raising your hand, catalogue or any appropriate means. You should make it clear to the Auctioneer that you are bidding, however don’t worry it is not true that an Auctioneer will mistake any casual movement for a bid. Don’t delay making your bid too long though, once the hammer falls contracts are legally exchanged so if you’re too slow, you may lose it!

+ Can I bid via telephone?

If you cannot attend the auction it may be possible to bid by proxy or telephone. By proxy means that you are asking the auctioneer to bid for you whilst by telephone means that you keep a degree of control. Telephone and proxy bids need to be confirmed in writing at least 24 hours prior to the sale. You will need to contact Paul Fosh Auctions to discuss submitting a bid by proxy or telephone. A form will need to be completed on which you must specify your maximum bid that the auctioneer bids for you (if proxy) and you must deposit a cheque large enough to cover the sale deposit amount based upon the largest figure you intend to bid or transfer funds to the auctioneer’s client account in advance. The form also asks for other information which would be entered onto the contract in the event that you were successful.

+ What happens at the fall of the Gavel?

If you are the last and highest bidder at the fall of the Auctioneer's hammer, you are the successful purchaser and are legally committed to pay the price you bid and complete the purchase. No one can outbid you after the sale and the Vendor is equally legally bound to complete the sale under the terms and timescale stipulated in the contract.

+ If successful at the auction, what do I have to pay?

You must have your finances available on the day. If you successfully purchase a lot at auction you will be required to pay a deposit before you leave the auction room. The deposit required is 10% of the sale price or £3,000 (whichever is the greater). Purchasers will also pay a contract documentation charge of 1.2% of the purchase price with a minimum of £750 including VAT. We accept debit cards, cash up to £7000 and personal/business cheques will also be accepted subject to Paul Fosh Auctions receiving satisfactory proofs of identity (passport or driving license and recent utility bill) together with details of your Solicitor. We DO NOT accept credit cards.

+ Who is responsible for insurance of the property?

Responsibility for insuring will vary from property to property but we always advise buyers to arrange cover from exchange of contracts just to be on the safe side. Our auctions are attended by White Knight Group who can offer insurance quotations and cover.

+ What if the lot does not sell?

If a lot does not reach the reserve price the lot will be withdrawn “unsold”. If there is an unsold lot that you are interested in, grab one of the auction team as soon as possible. Lots are often sold immediately after a sale has finished. Alternatively, give the auctioneers a call the next day and they will gladly provide a list of results showing any properties still available.

+ What happens after the sale?

If you are the successful bidder, congratulations! As well as paying the deposit and admin charge you will be asked to provide names, addresses and solicitors details for the contracts. You will be asked to sign the contracts which will then be forwarded to your solicitor. In most cases you will have up to 28 days to complete the purchase but in some cases it will be as little as 14 days. These details will have been in the legal pack. Make sure that you liaise with your solicitor as soon as possible giving your instructions for him/her to proceed. Ensure that you insure the property and put your solicitor in funds in time to be able to pay across the balance of money to the sellers’ solicitors. Once completion has taken place you can come into our office to collect keys (if applicable) or we can post them to you by recorded delivery.

Next Auctions

Wales & West Country

Thu 5 Dec 2019, 5.00pm The Cardiff North Hotel by Accor, Cardiff, CF23 9XF

Wales & West Country

Thu 6 Feb 2020, 5.00pm The Cardiff North Hotel by Accor, Cardiff, CF23 9XF

Online

Thu 27 Feb 2020, 12.00pm Paul Fosh Auctions, Newport, NP20 2AG

View property listings for our upcoming auctions

Did you know..?

Insure

Buyers should be aware that it is your responsibility to insure any property that you purchase from exchange of contracts.

Did you know..?

Guide

The guide prices quoted in this catalogue are neither our opinion of the value of the property nor are they the precise figure in which the reserve price will be set. Reserve prices may be set at, below or above the guide price but normally within a range of 10%.

Did you know..?

Buyers Premium

Buyers, in addition to the purchase price, buyers will be required to pay a buyer’s premium of 1.2% or Minimum £750.00 inc VAT per lot.

Did you know..?

Deposits

Buyers, the minimum deposit is £3,000 or 10% of the maximum bid price, whichever is the greater.

Did you know..?

Paying

For deposits, we accept debit cards, cheques and bankers drafts and sterling up to £7,000 but CANNOT ACCEPT CREDIT CARDS.