Auctioneering

Question 1

How have you advised clients on the suitability of sale by auction?

Answer 1

Written and verbal communication, I’d advised on the process itself, and suitability including value (affordability) development/hope value. Requirement for quick. expected level of interest

Question 2

How have you advised clients on an apprpriate auction reserve and guide prices?

Answer 2

Advised that auction reserves must be within 10% of the guide price (vice versa).

guide cant exceed the reserve

Question 3

Explain how you were involved in selling lots?

Answer 3

From booking items in at machinery sale, taking reserces discussing values, advising on Buyers premium/commission.

Taking bids on each lot, being mindful of reservce price, VAT status etc

Question 4

How have you managed an online auction sale?

Answer 4

• Manage marteye live online bidding platform
• uploading lots, ensuring clearly indentifiable
• entering bids as they come from the field and bidding on behalf of online buyers to the auctioneer

Question 5

How have you accounted to a client post auction?

Answer 5

Provided a list of lots sold, and their sale prices. using newline to deduct commission

Question 6

Land at Yew Tree Lane
Describe the field

Answer 6

16 acre arable field
road side access
hedgerow boundaries
no water or electric
grade 3
clay soil

Question 7

Land at Yew Tree Lane
What other disposal methods did you consider?

Answer 7

Formal tender as it allowed short completion period

Question 8

Land at Yew tree lane
Why did you discount those methods over Auction? (formal tender)

Answer 8

formal tender doesnt allow for competitiive bidding which i thought likely given the area and affordability/interest

Question 9

What was your recommended sale price?

Answer 9

£140000

Question 10

How did your advice add value to your Client achieving success in their project?

Answer 10

• property made over market value due to number of bidders in room running up price & competive bidding
• completed before year end as per his objectives

Question 11

Kidderminster Machinery Sale
Can you provide an example of when you’ve given advice on auctioneering an unusual item?

Answer 11

garden grocers vintage cart - provided advice on value after doing research and finding comps

Question 12

Kidderminster machinery sale
Talk us through how you formulated valuation advice for the lot as auction.

Answer 12

Often times valuation advice is verbal at machinery sales, client had delivered item and was returning the following day to discuss reserve/val advice. I explained that my valuation was based of comparable evidence but that every object is different

Question 13

Kidderminster machinery sale
what advice did you give as to auction strategy?

Answer 13

• sell on internet section as it was unique and needed higher marketing
• set a reserve price - allows auctioneer to run up

Question 14

What did that lot eventually sell for? (garden cart)

Answer 14

£450

Question 15

How have you compiled information relating to real estate to be sold at auction?

Answer 15

Instructed solicitors to conduct searches, and prepare legal pack inc. TR1, contract & a copy of title & plan.

sales details into particulars

Question 16

How have you assisted in the process of drawing up auction catalogues?

Answer 16

Getting photos of lots, entering lots on newline system, ascertaining reserves and VAT status. Calling vendors to generae entries. Advertising postsH

Question 17

How have you dealt with queries and issues raised prior to the auction in consultation with others?

Answer 17

queries inc vat status, date of sale, when items are available for entry. commission rates. issues - not having transportation, provide contact details for trusted transport companies.

Question 18

How have you dealt with issues arising post auction in consultation with othes?

Answer 18

Dealt with buyers thinking they paid less for a lot - i then refer to clerks sheets as point of reference.

or sellers thinking they told someone a different reserve, i look back at entry form and check reserve - and that they have signed it on the reserve provided

Question 19

Doverdale - Land auction
Describe one of the key improvements required before re-letting.

Answer 19

• Fencing - all of the fences were in a very poor state and essentilally not stock proof

Question 20

Doverdale land auction
Was a dilapidations claim considered to bring about some or all of the repairs required?

Answer 20

client had liaised with solicitor and lease was not contracted out of the 54act tenancy and there was concerns that if dilapidations were persued the tenant wouldnt leave

Question 21

Land at Doverdale
Describe the information you collated for the auction catalogue

Answer 21

legal pack
completion deadline
deposit information
aml requirements
descroption of the property
location cropping etc

Question 22

Land at Doverdale
How did you value the lot?

Answer 22

comparable value

Question 23

land at doverdale
what as the agreed marketing price?

Answer 23

£110-120000

Question 24

Land at Doverdale
Talk me through your marketing scheme?

Answer 24

mixed strategy - organic posting out details to local nearby farmers, sale board, & advertisement in machinery sale catalogue
wider strategy using standard techniques collectice proeperty brochure, advertisement on social media, property portals etc

Question 25

Land at Doverdale Talk me through the checks you undertook on bidders, nothing any key steps.

Answer 25

AML checks Proof of funds

Question 26

Post Sale Management What was the lot which the customer had missed out on?

Answer 26

2nd hand harrow

Question 27

Post sale management How did you document the concern of the customer in case it was ever escalated.

Answer 27

Made written note in sale notes of the issue and also flagged it with the online bidding platform that we use.

Question 28

post sale management What ethical and professional standard did you exemplify in the way you responded to the customers concerns?

Answer 28

treated the customers with respect, took responsibility for the matter

Question 29

Talk me through the legislative/regulatory requirements relating to auctions?

Answer 29

Auction (bidding agreements) Act 1927/1969 Estate Agentss Act 1979 Auctions Act 1845 Finance Act 1949 Sale of land by auction act 1867 EPC's conveyancing searches property disclosures

Question 30

How do you determine whether a property should be sold at auction?

Question 31

What benefits would there be to your client to sell at auction rather than on the open market?

Answer 31

- Competitive bidding - quick completion period

Question 32

How do you ascertain the legal owner of a property when representing them at auction?

Answer 32

Check the title deeds & AML

Question 33

When is an auction sale legally binding?

Answer 33

at the fall of the hammer

Question 34

What money laundering risks are you exposed to during an auction?

Question 35

What due diligence checks can be undertaken to reduce money laundering risks?

Answer 35

AML checks

Question 36

What are the advantages of buying/selling at auction?

Answer 36

quick exchange period seller - competitive bidding - no chain buyer - may get it cheap if no one else interested & past reserve - no chain - can see the legal pack prior to auction less risk

Question 37

What are the disadvantages to selling by auction?

Answer 37

buyer - compeititive bidding seller - can't choose who buys it

Question 38

What are the RICS common auction conditions?

Answer 38

are a set of conditions for use in sale and purchase contracts where the sale is by auction.

Question 39

When were the RICS common auction conditions last updated?

Answer 39

July 2024 7th edition

Question 40

What is the aim of the common auction conditions?

Answer 40

establish consistent practices across the real esate auction indsutry

Question 41

Tell me about one of the Common Auction Conditions?

Answer 41

the buyer buys with full knowledge of the documents whether or not they have read them all

Question 42

Talk me through the RICS Practice information auctioneers selling real estate 7th edition

Answer 42

the document is a professional standard and sets out the principles and best practice for auctioneers that are selling real estate

Question 43

What are the key principles of the RICS Practice Information Auctioneers Selling Real Estate 7th edition?

Answer 43

Conduct - be fair professional Client Terms clear and fair ToE Client requests (explanation of why an auctioneer cant do certain things) buyer information (process must be explained) addendums must be announced incorporates the common auction conditions Document now a professional standards

Question 44

How do you find out about an auction property?

Answer 44

- Property portals - auction houses - agent advertisement

Question 45

What is/are an imprortant notice to bidders/memorandum of sale/general conditions of sale?

Answer 45

A legal document setting out the terms of a sale

Question 46

What would the legal pack contain?

Answer 46

Draft Memorandum or contract condition of sale searches title plan deeds charges

Question 47

What might be a special condition of a sale?

Answer 47

Selling without vacant possesion

Question 48

What is a guide price?

Answer 48

a starting point for bidding that indicates a sellers minimum expectations and properties value

Question 49

What is a reserve price?

Answer 49

A sellers minimum sale price

Question 50

Which out of reserve and guide is confidential?

Answer 50

reserve

Question 51

How do reserve and guide differ?

Answer 51

By no more than 10%, one is confidential and is a clients minimum price, other is a guide of such

Question 52

What is an addendum?

Answer 52

ammendment of addition to the conditions/legal pack

Question 53

What fees are typical of an auctioneer?

Answer 53

entry fee & buyers premium commission VAT marketing budget

Question 54

Can you sell a property before or after an auction

Answer 54

yes

Question 55

What deposit is typically payable and when?

Answer 55

10% at the fall of the hammer

Question 56

How can you bid at auction?

Answer 56

online in person via telephone

Question 57

What is a proxy bid?

Answer 57

a maximum bid prior to auction that the auctioneer can bid on your behalf

Question 58

When is insurance required in relaition to an auction purchase?

Answer 58

at the fall of the hammer

Question 59

Is VAT payable on auction properties?

Answer 59

it can be

Question 60

What are the EPC requirements at auction?

Answer 60

a legal requirement to provide one to buyers, unless exempt. must have been done in last 10 yrs

Question 61

What does the Sale of land by auction act 1867 say?

Answer 61

Highest bona fide bidder is the purchaser Auctioneer can bid up to reserve

Question 62

Do you have to check anything in relation to an auction venue?

Answer 62

- owner of venue is agrees to hold auction - there is no prohibition against it - size of venue can accomodate anticipated number of bidders

Question 63

How are arrears dealt with in relation to auction properties?

Answer 63

in the sale conditions

Question 64

What should be included in auction particulars?

Answer 64

- informaiton about property - solicitor information - auctioneer information - date, time location of auction - where legal pack is obtainable from

Question 65

What is the power to sell?

Answer 65

the process of selling a property

Question 66

What are the requirements around the Aucctions (bidding agreements) Act 1927/1969?

Answer 66

- illegal for a dealer to offer an inducement to abstain from bidding - a copy of the act must be on display on the day of sale

Question 67

Talk me through the auctioneers act 1845.

Answer 67

required auctioneers to display their name and address in a prominent location before during and after the sale. the act has been repealed except this clause

Question 68

What do you understand by the 2014 Advertising Standards Authority ruling regarding guide princes?

Answer 68

requires a definition of a guide price in all media advertising and its distinction between a reserve

Question 69

What subsequent advice was issued by the committee of advertising practice in july 2014?

Question 70

How does the online auction process work?

Answer 70

similar to in person but bidder can bid from home. bidders must register etc, then bids are placed on the online system and updated duuring live bidding

Question 71

What does the future of auctioneering look like?

Answer 71

more online increased number