Common auction Conditions A6 a6.1 Extra Auction Conduct Conditions Despite any special condition to the contrary the minimum deposit we accept is £2,000 (or the total price, if less). a special condition may, however, require a higher minimum deposit. Words in bold type have special meanings, which are defined in the Glossary. the general conditions (including any extra general conditions) apply to the contract except to the extent that they are varied by special conditions or by an addendum. G1. The lot g1.1 the lot (including any rights to be granted or reserved, and any exclusions from it) is described in the special conditions, or if not so described the lot is that referred to in the sale memorandum. g1.2 the lot is sold subject to any tenancies disclosed by the special conditions, but otherwise with vacant possession on completion. g1.3 the lot is sold subject to all matters contained or referred to in the documents, but excluding any financial charges: these the seller must discharge on or before completion. g1.4 the lot is also sold subject to such of the following as may affect it, whether they arise before or after the contract date and whether or not they are disclosed by the seller or are apparent from inspection of the lot or from the documents: • (a) matters registered or capable of registration as local land charges; • (b) matters registered or capable of registration by any competent authority or under the provisions of any statute; • (c) notices, orders, demands, proposals and requirements of any competent authority; • (d) charges, notices, orders, restrictions, agreements and other matters relating to town and country planning, highways or public health; • (e) rights, easements, quasi-easements, and wayleaves; • (f) outgoings and other liabilities; • (g) any interest which overrides, within the meaning of the land Registration act 2002; • (h) matters that ought to be disclosed by the searches and enquiries a prudent buyer would make, whether or not the buyer has made them; and • (i) anything the seller does not and could not reasonably know about. g1.5 Where anything subject to which the lot is sold would expose the seller to liability the buyer is to comply with it and indemnify the seller against that liability. g1.6 the seller must notify the buyer of any notices, orders, demands, proposals and requirements of any competent authority of which it learns after the contract date but the buyer must comply with them and keep the seller indemnified. g1.7 the lot does not include any tenant’s or trade fixtures or fittings. g1.8 Where chattels are included in the lot the buyer takes them as they are at completion and the seller is not liable if they are not fit for use. g1.9 the buyer buys with full knowledge of: • (a) the documents, whether or not the buyer has read them; and • (b) the physical condition of the lot and what could reasonably be discovered on inspection of it, whether or not the buyer has inspected it. g1.10 the buyer is not to rely on the information contained in the particulars but may rely on the seller’s conveyancer’s written replies to preliminary enquiries to the extent stated in those replies. G2. Deposit g2.1 the amount of the deposit is the greater of: • (a) any minimum deposit stated in the auction conduct conditions (or the total price, if this is less than that minimum); and • (b) 10% of the price (exclusive of any vAT on the price). g2.2 the deposit • (a) must be paid in pounds sterling by cheque or banker’s draft drawn on an approved financial institution (or by any other means of payment that the auctioneers may accept); and • (b) is to be held as stakeholder unless the auction conduct conditions provide that it is to be held as agent for the seller. g2.3 Where the auctioneers hold the deposit as stakeholder they are authorised to release it (and interest on it if applicable) to the seller on completion or, if completion does not take place, to the person entitled to it under the sale conditions. g2.4 if a cheque for all or part of the deposit is not cleared on first presentation the seller may treat the contract as at an end and bring a claim against the buyer for breach of contract. g2.5 interest earned on the deposit belongs to the seller unless the sale conditions provide otherwise. G3. Between contract and completion g3.1 Unless the special conditions state otherwise, the seller g3.2 g3.3 g3.4 G4. g4.1 g4.2 g4.3 g4.4 g4.5 g4.6 G5. is to insure the lot from and including the contract date to completion and: • (a) produce to the buyer on request all relevant insurance details; • (b) pay the premiums when due; • (c) if the buyer so requests, and pays any additional premium, use reasonable endeavours to increase the sum insured or make other changes to the policy; • (d) at the request of the buyer use reasonable endeavours to have the buyer’s interest noted on the policy if it does not cover a contracting purchaser; • (e) unless otherwise agreed, cancel the insurance at completion, apply for a refund of premium and (subject to the rights of any tenant or other third party) pay that refund to the buyer; and • (f) (subject to the rights of any tenant or other third party) hold on trust for the buyer any insurance payments that the seller receives in respect of loss or damage arising after the contract date or assign to the buyer the benefit of any claim; and the buyer must on completion reimburse to the seller the cost of that insurance (to the extent not already paid by the buyer or a tenant or other third party) for the period from and including the contract date to completion. no damage to or destruction of the lot nor any deterioration in its condition, however caused, entitles the buyer to any reduction in price, or to delay completion, or to refuse to complete. Section 47 of the law of property act 1925 does not apply. Unless the buyer is already lawfully in occupation of the lot the buyer has no right to enter into occupation prior to completion. Title and identity Unless condition g4.2 applies, the buyer accepts the title of the seller to the lot as at the contract date and may raise no requisition or objection except in relation to any matter that occurs after the contract date. if any of the documents is not made available before the auction the following provisions apply: • (a) the buyer may raise no requisition on or objection to any of the documents that is made available before the auction. • (b) if the lot is registered land the seller is to give to the buyer within five business days of the contract date an official copy of the entries on the register and title plan and, where noted on the register, of all documents subject to which the lot is being sold. • (c) if the lot is not registered land the seller is to give to the buyer within five business days an abstract or epitome of title starting from the root of title mentioned in the special conditions (or, if none is mentioned, a good root of title more than fifteen years old) and must produce to the buyer the original or an examined copy of every relevant document. • (d) if title is in the course of registration, title is to consist of certified copies of: • (i) the application for registration of title made to the land registry; • (ii) the documents accompanying that application; • (iii) evidence that all applicable stamp duty land tax relating to that application has been paid; and • (iv) a letter under which the seller or its conveyancer agrees to use all reasonable endeavours to answer any requisitions raised by the land registry and to instruct the land registry to send the completed registration documents to the buyer. • (e) the buyer has no right to object to or make requisitions on any title information more than seven business days after that information has been given to the buyer. Unless otherwise stated in the special conditions the seller sells with full title guarantee except that (and the transfer shall so provide): • (a) the covenant set out in section 3 of the law of property (Miscellaneous provisions) act 1994 shall not extend to matters recorded in registers open to public inspection; these are to be treated as within the actual knowledge of the buyer; and • (b) the covenant set out in section 4 of the law of property (Miscellaneous provisions) act 1994 shall not extend to any condition or tenant’s obligation relating to the state or condition of the lot where the lot is leasehold property. the transfer is to have effect as if expressly subject to all matters subject to which the lot is sold under the contract. the seller does not have to produce, nor may the buyer object to or make a requisition in relation to, any prior or superior title even if it is referred to in the documents. the seller (and, if relevant, the buyer) must produce to each other such confirmation of, or evidence of, their identity and that of their mortgagees and attorneys (if any) as is necessary for the other to be able to comply with applicable land Registry Rules when making application for registration of the transaction to which the conditions apply. Transfer g5.1 g5.2 g5.3 G6. g6.1 g6.2 g6.3 g6.4 g6.5 g6.6 G7. g7.1 g7.2 g7.3 g7.4 G8. G9. g9.1 g9.2 g9.3 g9.4 g9.5 g9.6 Unless a form of transfer is prescribed by the special conditions: • (a) the buyer must supply a draft transfer to the seller at least ten business days before the agreed completion date and the engrossment (signed as a deed by the buyer if condition g5.2 applies) five business days before that date or (if later) two business days after the draft has been approved by the seller; and • (b) the seller must approve or revise the draft transfer within five business days of receiving it from the buyer. if the seller remains liable in any respect in relation to the lot (or a tenancy) following completion the buyer is specifically to covenant in the transfer to indemnify the seller against that liability. the seller cannot be required to transfer the lot to anyone other than the buyer, or by more than one transfer. Completion Completion is to take place at the offices of the seller’s conveyancer, or where the seller may reasonably require, on the agreed completion date. the seller can only be required to complete on a business day and between the hours of 0930 and 1700. the amount payable on completion is the balance of the price adjusted to take account of apportionments plus (if applicable) vAT and interest. payment is to be made in pounds sterling and only by: • (a) direct transfer to the seller’s conveyancer’s client account; and • (b) the release of any deposit held by a stakeholder. Unless the seller and the buyer otherwise agree, completion cannot take place until both have complied with their obligations under the contract and the balance of the price is unconditionally received in the seller’s conveyancer’s client account. if completion takes place after 1400 hours for a reason other than the seller’s default it is to be treated, for the purposes of apportionment and calculating interest, as if it had taken place on the next business day. Where applicable the contract remains in force following completion. Notice to complete the seller or the buyer may on or after the agreed completion date but before completion give the other notice to complete within ten business days (excluding the date on which the notice is given) making time of the essence. the person giving the notice must be ready to complete. if the buyer fails to comply with a notice to complete the seller may, without affecting any other remedy the seller has: • (a) terminate the contract; • (b) claim the deposit and any interest on it if held by a stakeholder; • (c) forfeit the deposit and any interest on it; • (d) resell the lot; and • (e) claim damages from the buyer. if the seller fails to comply with a notice to complete the buyer may, without affecting any other remedy the buyer has: • (a) terminate the contract; and • (b) recover the deposit and any interest on it from the seller or, if applicable, a stakeholder. If the contract is brought to an end if the contract is lawfully brought to an end: • (a) the buyer must return all papers to the seller and appoints the seller its agent to cancel any registration of the contract; and • (b) the seller must return the deposit and any interest on it to the buyer (and the buyer may claim it from the stakeholder, if applicable) unless the seller is entitled to forfeit the deposit under condition g7.3. Landlord’s licence Where the lot is or includes leasehold land and licence to assign is required this condition g9 applies. the contract is conditional on that licence being obtained, by way of formal licence if that is what the landlord lawfully requires. the agreed completion date is not to be earlier than the date five business days after the seller has given notice to the buyer that licence has been obtained. the seller must: • (a) use all reasonable endeavours to obtain the licence at the seller’s expense; and • (b) enter into any authorised guarantee agreement properly required. the buyer must: • (a) promptly provide references and other relevant information; and • (b) comply with the landlord’s lawful requirements. if within three months of the contract date (or such longer period as the seller and buyer agree) the licence has not been obtained the seller or the buyer may (if not then in breach of any obligation under this condition g9) by notice to the other terminate the contract at any time before licence is obtained. that termination is without www.countrywidepropertyauctions.co.uk 50 Can’t make the auction? You can still make a telephone or proxy bid on the property you are interested in. For further details contact the auctioneers immediately. Telephone 0870 240 1140.