Buying a Tourism Business in Gambia: Bars, Restaurants, Hotels
Auction
An auction is a sale which takes place, usually in public,
when a property is sold to the highest bidder, provided the
amount of money offered exceeds the reserve price. The sale
process by auction is immediate, with exchange of contracts
being achieved on the "fall of the hammer". A reserve price
is the lowest price the vendor is prepared to accept and the
property will not be sold unless a higher bid is received.
In most cases, a guide price is also available from the
auctioneer.In the case of disposing of a property, auctioneers
usually require a catalogue entry fee for each property that
is included in an auction which can vary between £1,000 to
£1,500 (exclusive) and is payable regardless of whether a
sale is achieved. In addition, on completion, a further fee
is payable to the auctioneer which usually ranges from between
1.25% to 1.5%, (exclusive) of the sale price. This also excludes
legal fees, which the vendor is required to pay.
Not all properties are suitable for a sale by auction because
there are different types of purchasers operating in the auction
market compared to normal private treaty sales. Each property
therefore needs to be considered individually to ascertain
whether this method of sale is the most appropriate.
The Royal Institution of Chartered Surveyors is currently
preparing a document known as "Common Conditions of Sale"
in order to simplify the auction process, and also make auction
contracts easier to understand.
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