Auctions Level 2 - Lowestoft

Question 1

Where is Lowestoft?

Answer 1

Suffolk

Question 2

Why did the property receive limited interest prior to auction?

Answer 2

Freehold shop, upper parts were sold off on long leasehold.

Question 3

What would you have to consider if the upper parts were sold off?

Answer 3

If there are 2 qualifying tenants and the residential floor area of the property is more than 50% of the total area, the act could apply.

For an auction sale a section 5b notice must be served to the qualifying tenants 4-6 months prior to auction date.

Question 4

Describe the property

Answer 4

ground floor retail unit
steel framed
single glazed frontage

Question 5

What constitutes a formal offer?

Answer 5

offer in writing,

Question 6

How does selling prior differ from selling at auction?

Answer 6

auctioneers have implied authority to sign the memorandum at the auction as per our terms of engagement.

prior or after auction we need written consent from the seller to exchange.

formula a - we have both parts of the contract with consent
formula b - we sign on behalf of the seller with consent and buyer solicitor signs on their behalf.

Question 7

What gives auctioneers the powers to sign contract on behalf of the client?

Answer 7

In our terms of business.

Question 8

why did you recommend selling the property before auction?

Answer 8

I presented two scenarios to my client

one was reducing the guide further and trying to sell at auction or the other was accepting the offer prior to auction which was ahead of the guide.

given the clients objectives being short time frame and achieve best price selling prior to auction was the most appropriate route.

Question 9

What did you guide the property at?

Answer 9

£270,000 - £290,000 property sold at upper end of the guide reflecting just over 12%