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RICS APC RURAL PATHWAY > Auctioneering > Flashcards

Auctioneering Flashcards

1
Q

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

A

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

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2
Q

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

A

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

guide cant exceed the reserve

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3
Q

Explain how you were involved in selling lots?

A

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

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4
Q

How have you managed an online auction sale?

A
  • 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
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5
Q

How have you accounted to a client post auction?

A

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

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6
Q

Land at Yew Tree Lane
Describe the field

A

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

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7
Q

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

A

Formal tender as it allowed short completion period

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8
Q

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

A

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

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9
Q

What was your recommended sale price?

A

£140000

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10
Q

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

A
  • 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
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11
Q

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

A

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

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12
Q

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

A

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

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13
Q

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

A
  • sell on internet section as it was unique and needed higher marketing
  • set a reserve price - allows auctioneer to run up
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14
Q

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

A

£450

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15
Q

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

A

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

sales details into particulars

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16
Q

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

A

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

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17
Q

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

A

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.

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18
Q

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

A

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

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19
Q

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

A
  • Fencing - all of the fences were in a very poor state and essentilally not stock proof
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20
Q

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

A

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

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21
Q

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

A

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

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22
Q

Land at Doverdale
How did you value the lot?

A

comparable value

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23
Q

land at doverdale
what as the agreed marketing price?

A

£110-120000

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24
Q

Land at Doverdale
Talk me through your marketing scheme?

A

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

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25
Q

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

A

AML checks
Proof of funds

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26
Q

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

A

2nd hand harrow

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27
Q

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

A

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

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28
Q

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

A

treated the customers with respect, took responsibility for the matter

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29
Q

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

A

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

30
Q

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

A
31
Q

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

A
  • Competitive bidding
  • quick completion period
32
Q

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

A

Check the title deeds & AML

33
Q

When is an auction sale legally binding?

A

at the fall of the hammer

34
Q

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

A
35
Q

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

A

AML checks

36
Q

What are the advantages of buying/selling at auction?

A

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

37
Q

What are the disadvantages to selling by auction?

A

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

38
Q

What are the RICS common auction conditions?

A

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

39
Q

When were the RICS common auction conditions last updated?

A

July 2024 7th edition

40
Q

What is the aim of the common auction conditions?

A

establish consistent practices across the real esate auction indsutry

41
Q

Tell me about one of the Common Auction Conditions?

A

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

42
Q

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

A

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

43
Q

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

A

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

44
Q

How do you find out about an auction property?

A
  • Property portals
  • auction houses
  • agent advertisement
45
Q

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

A

A legal document setting out the terms of a sale

46
Q

What would the legal pack contain?

A

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

47
Q

What might be a special condition of a sale?

A

Selling without vacant possesion

48
Q

What is a guide price?

A

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

49
Q

What is a reserve price?

A

A sellers minimum sale price

50
Q

Which out of reserve and guide is confidential?

A

reserve

51
Q

How do reserve and guide differ?

A

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

52
Q

What is an addendum?

A

ammendment of addition to the conditions/legal pack

53
Q

What fees are typical of an auctioneer?

A

entry fee & buyers premium
commission
VAT
marketing budget

54
Q

Can you sell a property before or after an auction

A

yes

55
Q

What deposit is typically payable and when?

A

10% at the fall of the hammer

56
Q

How can you bid at auction?

A

online
in person
via telephone

57
Q

What is a proxy bid?

A

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

58
Q

When is insurance required in relaition to an auction purchase?

A

at the fall of the hammer

59
Q

Is VAT payable on auction properties?

A

it can be

60
Q

What are the EPC requirements at auction?

A

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

61
Q

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

A

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

62
Q

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

A
  • owner of venue is agrees to hold auction
  • there is no prohibition against it
  • size of venue can accomodate anticipated number of bidders
63
Q

How are arrears dealt with in relation to auction properties?

A

in the sale conditions

64
Q

What should be included in auction particulars?

A
  • informaiton about property
  • solicitor information
  • auctioneer information
  • date, time location of auction
  • where legal pack is obtainable from
65
Q

What is the power to sell?

A

the process of selling a property

66
Q

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

A
  • 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
67
Q

Talk me through the auctioneers act 1845.

A

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

68
Q

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

A

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

69
Q

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

A
70
Q

How does the online auction process work?

A

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

71
Q

What does the future of auctioneering look like?

A

more online
increased number

72
Q
A

RICS APC RURAL PATHWAY (18 decks)

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