AUCTION TERMS

A. INTRODUCTION

These are the terms and conditions which govern the on-line auctions conducted by DSM Holdings Limited trading as Lot 11. They are adapted from RICS Common Auction Conditions (3rd Edn) and are divided into the following sections:

A. Introduction
B. Important Notices

These notices set out matters that all prospective buyers should be aware of before bidding.

They should be read carefully.

C. Glossary

The Glossary gives special meanings to certain words used in these Auction Terms, including the Bidding Preliminaries, the Auction Conduct Conditions and the Sale Conditions.

D. Bidding Preliminaries

Prospective bidders must comply with certain regulatory requirements as part of our registration process.

E. Auction Conduct Conditions

The Auction Conduct Conditions govern the relationship between the auctioneer and anyone who participates in the auction. They cannot be changed without our agreement.

F. Template form of written agreement

This is a specimen of the standard form of written agreement (contract of sale) which the auctioneers will sign on behalf of the buyer and on behalf of the seller.

G. Sale Conditions

The Sale Conditions govern the agreement between each seller and buyer. They include general conditions and template forms of special conditions of sale and tenancy and arrears schedules.

H. The Details of the changes made to the RICS Common Auction Conditions are available on request.

Reproduction of the RICS Common Auction Conditions is with the consent of the RICS.

B. IMPORTANT NOTICES

General

B1. Words highlighted have special definitions contained in the Glossary (section C of these Auction Terms).

B2. A prudent buyer will, before bidding for a lot at an auction:

  • Take professional advice from a conveyancer and, in appropriate cases, a chartered surveyor and an accountant
  • Read these auction terms including the conditions
  • Inspect the lot
  • Carry out usual searches and make usual enquiries
  • Check the content of all available leases and other documents relating to the lot
  • Check that what is said about the lot in the catalogue is accurate
  • Have finance available for the deposit and purchase price
  • Check whether VAT registration and election is advisable

B3. These auction terms assume that the buyer has acted like a prudent buyer.

B4. If you choose to buy a lot without taking these normal precautions you do so at your own risk.

Guide Price and Reserve Price and Rental Values

B5. Any guide price or reserve price given for a lot must not be regarded or relied on as a valuation. We have not carried out a valuation of any lot. You must decide what price, if any, you are willing to bid for a lot.

B6. You should refer to your own professional advisers to establish whether any guide price or indication as to current or future or rental value of a lot is accurate.

B7. We and the seller of any lot accept no responsibility for any loss, damage, costs or expenses incurred or suffered as a result of acting on any guide price or reserve price.

Information in the catalogue

B8. We have not verified the information contained in the catalogue. No warranty representation or undertaking whatsoever is given that information in the catalogue is accurate or that it will be accurate on the date of the auction. You should make your own enquiries.

Alteration of the auction terms

B9. The auction terms may be amended from time to time. You will be required to accept the latest version of the auction terms (which may not be the version when you registered as a bidder) before being permitted to bid in an auction and so you should ensure that you have read and understood the latest version of the terms and conditions should take legal advice.

Written Agreement

B10. A contract entered into in the course of a public auction is not required to be in writing. It is intended that the buyer will be bound on acceptance of a successful bid in the course of the auction. However, in the course of registering as a bidder you will have authorised us to execute a written agreement in respect of a successful bid. Following the auction we will execute a written agreement to reflect the terms of the successful bid. The written agreement is intended to bind the parties even if a contract was not made in the course of the auction on acceptance of the successful bid.

Authority of any person who acts as an agent

B11. If you take part in an auction as an agent for a third party:

  1. You must ensure that you have the necessary authority to bind your principal to the obligations on the part of a buyer and to enter into a contract for the purchase of a lot on behalf of your principal on the terms of a successful bid, including authority to authorise us to enter into a written agreement in relation to any lot for which you make a successful bid.
  2. You will be liable for the express obligations contained in these auction terms on the part of the bidder, and any implied obligations arising.
  3. You will be liable for defaults by your principal.
  4. You will be liable as a principal and/or for damages in so far as you do not have authority on behalf of your principal.

Registration as a bidder

B12. In order to bid at an auction you will need to register on the website as a bidder.

Successful bid fee

B13. A successful bid fee must be paid on making a successful bid.

C. GLOSSARY

This glossary applies to these auction terms, including the auction conduct conditions and the sale conditions.

Wherever it makes sense:

  • singular words can be read as plurals, and plurals as singular words;
  • a “person” includes a corporate body;
  • words of one gender include the other genders;
  • references to legislation are to that legislation as it may have been modified or re-enacted by the date of the auction or the contract date (as applicable); and
  • where the following words appear in bold they have the following specified meanings.

Actual completion date

The date when completion takes place or is treated as taking place for the purposes of apportionment and calculating interest.

Addendum

An amendment or addition to the conditions or to the particulars or to both whether contained in a supplement to the catalogue, a written notice from the auctioneers or an announcement on the lot page of the website.

Agreed completion date

Subject to condition G9(3):

(a) the date specified in the special conditions; or
(b) if no date is specified, 20 business days after the contract date;
but if that date is not a business day the first subsequent business day.

Arrears

Arrears of rent and other sums due under the tenancies and still outstanding on the actual completion date.

Arrears schedule

The arrears schedule (if any) forming part of the special conditions.

Auction

The auction which will be conducted by the auctioneers online via the website and in the course of which a bidder may bid for a lot.

Auction conduct conditions

The conditions so headed and set out at Section E of these auction terms, together with any extra auction conduct conditions.

Auction terms

The terms and conditions in this document, including Parts A, B, C, D, E, F & G.

Auctioneers

The auctioneers at the auction, namely DSM Holdings Limited, whose company number is 09791042 and whose registered office is at 5 Broadbent Close Highgate London N6 5JW.

Auctioneers’ fee

A sum equal to 1.75% of the price of the lot under the contract plus VAT or such other sum agreed with the Seller

Bidder

A person who has registered on the website and bids for a lot.

Business day

Any day except (a) a Saturday or a Sunday; (b) a bank holiday in England and Wales; or (c) Good Friday or Christmas Day.

Buyer

The person who agrees to buy the lot or, if applicable, that person’s personal representatives: if two or more are jointly the buyer their obligations can be enforced against them jointly or against each of them separately.

Catalogue

The on-line catalogue to which the conditions refer including any supplement to it.

Completion

Unless otherwise agreed between seller and buyer (or their conveyancers) the occasion when both seller and buyer 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.

Condition

One of the auction conduct conditions or sale conditions.

Contract

The contract by which the seller agrees to sell and the buyer agrees to buy the lot.

Contract date

The date of the auction or, if the contract is not concluded in the course of the auction:

(a) the date of the contract signed on behalf of both the seller and buyer; or
(b) if contracts are exchanged, the date of exchange. If exchange is not effected in person or by an irrevocable agreement to exchange made by telephone, fax or electronic mail the date of exchange is the date on which both parts have been signed and posted or otherwise placed beyond normal retrieval.

Documents

Documents of title (including, if title is registered, the entries on the register and the title plan) and other documents listed or referred to in the special conditions relating to the lot.

Financial charge

A charge to secure a loan or other financial indebtedness (not including a rentcharge).

General conditions

That part of the sale conditions so headed, including any extra general conditions.

Interest rate

If not specified in the special conditions, 4% above the base rate from time to time of Barclays Bank plc. (The interest rate will also apply to judgment debts, if applicable.)

Lot

Each separate property described in the catalogue or (as the case may be) the property that the seller has agreed to sell and the buyer to buy (including chattels, if any).

Old arrears

Arrears due under any of the tenancies that are not “new tenancies” as defined by the Landlord and Tenant (Covenants) Act 1995.

Particulars

The section of the catalogue that contains descriptions of each lot (as varied by any addendum).

Practitioner

An insolvency practitioner for the purposes of the Insolvency Act 1986 (or, in relation to jurisdictions outside the United Kingdom, any similar official).

Price

The price that the buyer agrees to pay for the lot.

Ready to complete

Ready, willing and able to complete: if completion would enable the seller to discharge all financial charges secured on the lot that have to be discharged by completion, then those outstanding financial charges do not prevent the seller from being ready to complete.

Sale conditions

The general conditions as varied by any special conditions or addendum.

Seller

The person selling the lot. If two or more are jointly the seller their obligations can be enforced against them jointly or against each of them separately.

Special conditions

Those of the sale conditions so headed that relate to the lot.

Successful bid

A bid for a lot which is successful at the auction.

Successful bid fee

The sum of £500 plus VAT which is payable to us on a successful bid

Tenancies

Tenancies, leases, licences to occupy and agreements for lease and any documents varying or supplemental to them.

Tenancy schedule

The tenancy schedule (if any) forming part of the special conditions

Transfer

Transfer includes a conveyance or assignment (and “to transfer” includes “to convey” or “to assign”).

TUPE

The Transfer of Undertakings (Protection of Employment) Regulations 2006.

VAT

Value Added Tax or other tax of a similar nature.

VAT option

An option to tax.

We (and us and our)

The auctioneers.

Website

The website of the auctioneers, www.lot11.co.uk

Written Agreement

The written agreement in the form set out in Section F of these auction terms which we will execute on behalf of the seller and on behalf of the buyer containing the terms of the sale and purchase of the lot following a successful bid.

You (and your)

Someone who registers on the website and who bids at the auction, whether or not a buyer, and/or a buyer as the case may be.

D: BIDDING PRELIMINARIES

D1. In order to take part in an auction and bid for any property you must have gone through the registration procedure on the website. As part of that registration process you must complete our identity verification procedure and anti-money laundering procedure.

E. AUCTION CONDUCT CONDITIONS

E1. Introduction

  1. Words in bold type have special meanings which are defined in the Glossary.
  2. Use of the website and access to the catalogue is allowed only on the basis that you accept these auction conduct conditions. They govern our relationship with you and cannot be disapplied or varied by the sale conditions (even by a condition purporting to replace the whole of the Common Auction Conditions). They can be varied only if we agree.
  3. By participating in the auction you confirm that you agree and accept the auction conduct conditions.

E2. Our role

  1. As agents for each seller we have authority to:
    • prepare the catalogue from information supplied by or on behalf of each seller;
    • offer each lot for sale;
    • sell each lot;
    • receive and hold deposits;
    • sign each written agreement; and
    • treat a contract as repudiated if the buyer fails to pay a deposit as required by these Auction Conduct Conditions.
  2. Our decision on the conduct of the auction is final.
  3. We may cancel the auction, or alter the order in which lots are offered for sale. We may also combine or divide lots. A lot may be sold or withdrawn from sale prior to the auction. We may make any changes to the bidding process that we consider appropriate.
  4. You acknowledge that,
    • to the extent permitted by law we owe you no duty of care and you have no claim against us for any loss;
    • you have not relied on any representation or statement in the catalogue;
    • you have not relied on any guide price or reserve price as a valuation of a lot.
  5. We do not promise that you will have access to the website, or that you will be able to bid, or that any bid which you or any other bidder may make or purport to make will be received or accepted by us.
  6. We may refuse to allow you or any other prospective bidder to participate in an auction.
  7. In so far as we are held to have any liability to you, our total liability will not exceed our professional indemnity limit of £1,000,000.

E3. Bidding and reserve prices

  1. All bids are to be made in pounds sterling exclusive of any applicable VAT.
  2. We may refuse to accept a bid. We do not have to explain why.
  3. If there is a dispute over bidding we are entitled to resolve it, and our decision is final.
  4. Any bid made using your log-in details will be as valid and effective as if made by you.
  5. Unless stated otherwise each lot is subject to a reserve price (which may be fixed just before the lot is offered for sale). If no bid equals or exceeds that reserve price the lot will be withdrawn from the auction.
  6. Where a guide price (or range of prices) is given that guide is the minimum price at which, or range of prices within which, the seller might be prepared to sell at the date of the guide price. But guide prices may change. The last published guide price will normally be at or above any reserve price, but not always – as the seller may fix the final reserve price just before bidding commences.

E4. The particulars and other information

  1. The particulars are based on information supplied by or on behalf of the seller. You need to check that the information in the particulars is correct.
  2. If the special conditions do not contain a description of the lot, or simply refer to the relevant lot number, you take the risk that the description contained in the particulars is incomplete or inaccurate, as the particulars have not been prepared by a conveyancer and are not intended to form part of a legal contract.
  3. The particulars and the sale conditions may change prior to the auction and it is your responsibility to check that you have seen and considered the latest version and any addendum at the time of bidding.
  4. If we provide information, or a copy of a document, provided by others we do so only on the basis that we are not responsible for the accuracy of that information or document.

E5. The contract

  1. A successful bid is one we accept as such. If you make the successful bid for a lot, this condition E5 applies to you. If you have disclosed that you are acting as agent for the buyer, references to “you” in E5(2) to(6) are references to the buyer.
  2. You are obliged to buy the lot on the terms of the written agreement at the price plus VAT (if applicable).
  3. You must within 24 hours after the auction pay the deposit and the successful bid fee to the auctioneers.
  4. If you do not pay the deposit within the time stipulated (as to which time is of the essence) we may as agent for the seller treat that failure as your repudiation of the contract and offer the lot for sale again: the seller may then have a claim against you for breach of contract.
  5. The deposit:
    1. is to be held as stakeholder where VAT would be chargeable on the deposit were it to be held as agent for the seller, but otherwise is to be held as stated in the sale conditions; and
    2. must be paid to us in pounds sterling by telegraphic transfer or BACS. The extra auction conduct conditions may state if we accept any other form of payment.
  6. If the deposit is to be held as stakeholder, you agree that we may immediately deduct and retain the auctioneers’ fee from the deposit and hold the balance as the stake. In so far as the deposit becomes payable to you, the sum to be paid by us excludes the auctioneers’ fee. The shortfall resulting from our having deducted the auctioneers’ fee you must recover from the seller.
  7. We may retain the written agreement until the deposit has been received in cleared funds.
  8. If the buyer does not comply with its obligations under the contract then:
    1. you are personally liable to buy the lot even if you are acting as an agent; and
    2. you must indemnify the seller in respect of any loss the seller incurs as a result of the buyer’s default; and
    3. you must pay the successful bid fee.
  9. Where the buyer is a company you warrant that the buyer is properly constituted and able to buy the lot.
  10. In the event that you make a successful bid, we shall execute on behalf of the buyer and on behalf of the seller a written agreement in the form of the template attached to the auction terms at section F but completed to reflect the terms of the successful bid with details of the date, the buyer, the seller, the lot and the price. When you registered to bid at the auction you authorised us to execute such a written agreement in the event of your making a successful bid and by participating in the auction you confirm that we have your authority and (if different) the buyer’s authority to execute such a written agreement in the event of your making a successful bid. If you not have informed us that you are agent for the buyer, you will be named in the written agreement as the buyer and liable as such.

E6. Extra Auction Conduct Conditions

Despite any special condition to the contrary the minimum deposit we accept is £1,000 (or the total price, if less). A special condition may, however, require a higher minimum deposit.

F. TEMPLATE OF WRITTEN AGREEMENT

AGREEMENT DATE:

SELLER:

[name/address/company number]

BUYER:

[name/address/company number]

PROPERTY:

[as in special conditions]

Auction:

the on-line auction held on ... [date] in which the Buyer successfully bid to buy the Property

Auctioneers:

DSM Holdings Limited

Auction Terms:

the Auction Terms appended hereto

Buyer’s Solicitors:

Completion Date:

the Agreed Completion Date as defined in the Auction Terms

Documents:

the documents as defined in the Auction Terms

Purchase Price:

Seller’s Solicitors:

[words & figures]

Terms of Sale:

the Auction Terms, including the general conditions (except to the extent that they have been varied by special conditions or by any addendum), together with the special conditions and any addendum

 

  1. This agreement sets out the terms agreed for the sale of the Property by the Seller to the Buyer at the Auction. It is entered into in order to ensure that the Seller and Buyer are contractually bound in the event that the Auctioneers’ acceptance of the Buyer’s bid at the Auction did not result in a binding contract for the sale and purchase of the Property.
  2. The Seller shall sell and the Buyer shall buy the Property at the Purchase Price.
  3. The sale and purchase of the Property shall complete on the Completion Date.
  4. The Terms of Sale are incorporated into this agreement and the sale and purchase shall be subject to and in accordance with the Terms of Sale.
  5. The Buyer agrees and acknowledges that:

    a. The Buyer buys with full knowledge of:

    1. the documents,
    2. the physical condition of the lot and what could reasonably be discovered on inspection of it, whether or not the buyer has inspected it.

    b. The Buyer has not relied on the information contained in the Particulars (as defined in the Auction Terms) or oral representations.

  6. In entering into this Agreement the Buyer may rely on written replies to preliminary enquiries by the Seller’s Solicitors’ to the extent stated in those replies.
  7. The Buyer acknowledges that the Auctioneers are authorised to enter into this Agreement on the Buyer’s behalf.
  8. The Seller acknowledges that the Auctioneers are authorised to enter into this Agreement on the Buyer’s behalf.

Signed by DSM Holdings Limited for and on behalf of the Seller

Signed by DSM Holdings Limited for and on behalf of the Buyer

G. GENERAL CONDITIONS

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

  1. The lot (including any rights to be granted or reserved, and any exclusions from it) is described in the special conditions.
  2. The lot is sold subject to any tenancies disclosed by the special conditions, but otherwise with vacant possession on completion.
  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.
  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:
    1. matters registered or capable of registration as local land charges;
    2. matters registered or capable of registration by any competent authority or under the provisions of any statute;
    3. notices, orders, demands, proposals and requirements of any competent authority;
    4. charges, notices, orders, restrictions, agreements and other matters relating to town and country planning, highways or public health;
    5. rights, easements, quasi-easements, and wayleaves;
    6. outgoings and other liabilities;
    7. any interest which overrides, within the meaning of the Land Registration Act 2002;
    8. 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
    9. anything the seller does not and could not reasonably know about.
  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.
  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.
  7. The lot does not include any tenant’s or trade fixtures or fittings.
  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.
  9. The buyer buys with full knowledge of:
    1. the documents, whether or not the buyer has read them; and
    2. the physical condition of the lot and what could reasonably be discovered on inspection of it, whether or not the buyer has inspected it.
  10. The buyer is not to rely on the information contained in the particulars or on any oral representations but may rely on the seller’s conveyancer’s written replies to preliminary enquiries to the extent stated in those replies.

G2.Deposit

  1. The amount of the deposit is the greater of:
    1. any minimum deposit stated in the auction conduct conditions (or the total price, if this is less than that minimum); and
    2. 10% of the price (exclusive of any VAT on the price).
  2. The deposit
    1. must be paid in pounds sterling by telegraphic transfer or BACS (or by any other means of payment that the auctioneers may accept); and
    2. is to be held as agent for the seller unless the auction conduct conditions provide otherwise.
  3. Where the auctioneers hold the deposit as stakeholder they are authorised,
    1. Immediately to deduct and retain the auctioneers’ fee, and
    2. to release the balance (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.
  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.
  5. Interest earned on the deposit belongs to the seller unless the sale conditions provide otherwise.

G3. Between contract and completion

  1. Unless the special conditions state otherwise, the seller is to insure the lot from and including the contract date to completion and:
    1. produce to the buyer on request all relevant insurance details;
    2. pay the premiums when due;
    3. 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;
    4. 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;
    5. 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
    6. (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

  2. 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.
  3. Section 47 of the Law of Property Act 1925 does not apply.
  4. Unless the buyer is already lawfully in occupation of the lot the buyer has no right to enter into occupation prior to completion.

G4. Title and identity

  1. 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.
  2. If any of the documents is not made available before the auction the following provisions apply:
    1. The buyer may raise no requisition on or objection to any of the documents that is made available before the auction.
    2. 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.
    3. 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.
    4. If title is in the course of registration, title is to consist of certified copies of:
      1. the application for registration of title made to the land registry;
      2. the documents accompanying that application;
      3. evidence that all applicable stamp duty land tax relating to that application has been paid; and
      4. 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.
    5. 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.
  3. Unless otherwise stated in the special conditions the seller sells with full title guarantee except that (and the transfer shall so provide):
    1. 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
    2. 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.
  4. The transfer is to have effect as if expressly subject to all matters subject to which the lot is sold under the contract.
  5. 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.
  6. 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.

G5. Transfer

  1. Unless a form of transfer is prescribed by the special conditions:
    1. 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
    2. the seller must approve or revise the draft transfer within five business days of receiving it from the buyer.
  2. 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.
  3. The seller cannot be required to transfer the lot to anyone other than the buyer, or by more than one transfer.

G6. Completion

  1. 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.
  2. The amount payable on completion is the balance of the price adjusted to take account of apportionments plus (if applicable) VAT and interest.
  3. Payment is to be made in pounds sterling and only by:
    1. i. direct transfer to the seller’s conveyancer’s client account; and
    2. ii. the release of any deposit held by a stakeholder.
  4. 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.
  5. 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.
  6. Where applicable the contract remains in force following completion.

G7. Notice to complete

  1. 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.
  2. The person giving the notice must be ready to complete.
  3. If the buyer fails to comply with a notice to complete the seller may, without affecting any other remedy the seller has:
    1. terminate the contract;
    2. claim the deposit and any interest on it if held by a stakeholder;
    3. orfeit the deposit and any interest on it;
    4. resell the lot; and
    5. claim damages from the buyer.
  4. If the seller fails to comply with a notice to complete the buyer may, without affecting any other remedy the buyer has:
    1. terminate the contract; and
    2. recover the deposit and any interest on it from the seller or, if applicable, a stakeholder.
  5. References in condition G.5(3) and condition G.5(4) to recovering the deposit from a stakeholder are references to the deposit less the auctioneers’ fee if the auctioneers have deducted and retained the auctioneers’ fee from the deposit.

G8. If the contract is brought to an end

  1. If the contract is lawfully brought to an end:
    1. the buyer must return all papers to the seller and appoints the seller its agent to cancel any registration of the contract; and
    2. 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).
  2. The reference in condition G.8(1) to the buyer claiming the deposit from the stakeholder is a reference to claiming the deposit less the auctioneers’ fee if the auctioneers have deducted and retained the auctioneers’ fee from the deposit.

G9. Landlord’s licence

  1. Where the lot is or includes leasehold land and licence to assign is required this condition G9 applies.
  2. The contract is conditional on that licence being obtained, by way of formal licence if that is what the landlord lawfully requires.
  3. 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.
  4. The seller must:
    1. use all reasonable endeavours to obtain the licence at the seller’s expense; and
    2. enter into any authorised guarantee agreement properly required.
  5. The buyer must:
    1. promptly provide references and other relevant information; and
    2. comply with the landlord’s lawful requirements.
  6. 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 prejudice to the claims of either seller or buyer for breach of this condition G9.
  7. G10. Interest and apportionments

    1. If the actual completion date is after the agreed completion date for any reason other than the seller’s default the buyer must pay interest at the interest rate on the price (less any deposit paid) from the agreed completion date up to and including the actual completion date.
    2. Subject to condition G11 the seller is not obliged to apportion or account for any sum at completion unless the seller has received that sum in cleared funds. The seller must pay to the buyer after completion any sum to which the buyer is entitled that the seller subsequently receives in cleared funds.
    3. Income and outgoings are to be apportioned at actual completion date unless:
      1. the buyer is liable to pay interest; and
      2. ii. the seller has given notice to the buyer at any time up to completion requiring apportionment on the date from which interest becomes payable by the buyer;

      in which event income and outgoings are to be apportioned on the date from which interest becomes payable by the buyer.

    1. Apportionments are to be calculated on the basis that:
      1. the seller receives income and is liable for outgoings for the whole of the day on which apportionment is to be made;
      2. annual income and expenditure accrues at an equal daily rate assuming 365 days in a year, and income and expenditure relating to some other period accrues at an equal daily rate during the period to which it relates; and
      3. where the amount to be apportioned is not known at completion apportionment is to be made by reference to a reasonable estimate and further payment is to be made by seller or buyer as appropriate within five business days of the date when the amount is known.

    G11. Arrears

    Part 1 Current rent

    1. “Current rent” means, in respect of each of the tenancies subject to which the lot is sold, the instalment of rent and other sums payable by the tenant in advance on the most recent rent payment date on or within four months preceding completion
    2. If on completion there are any arrears of current rent the buyer must pay them, whether or not details of those arrears are given in the special conditions.
    3. Parts 2 and 3 of this condition G11 do not apply to arrears of current rent.

    Part 2 Buyer to pay for arrears

    1. Part 2 of this condition G11 applies where the special conditions give details of arrears.
    2. The buyer is on completion to pay, in addition to any other money then due, an amount equal to all arrears of which details are set out in the special conditions.
    3. If those arrears are not old arrears the seller is to assign to the buyer all rights that the seller has to recover those arrears.

    Part 3 Buyer not to pay for arrears

    1. Part 3 of this condition G11 applies where the special conditions:
      1. so state; or
      2. give no details of any arrears.
    2. While any arrears due to the seller remain unpaid the buyer must:
      1. try to collect them in the ordinary course of management but need not take legal proceedings or forfeit the tenancy;
      2. pay them to the seller within five business days of receipt in cleared funds (plus interest at the interest rate calculated on a daily basis for each subsequent day’s delay in payment);
      3. on request, at the cost of the seller, assign to the seller or as the seller may direct the right to demand and sue for old arrears, such assignment to be in such form as the seller’s conveyancer may reasonably require;
      4. if reasonably required, allow the seller’s conveyancer to have on loan the counterpart of any tenancy against an undertaking to hold it to the buyer’s order;
      5. not without the consent of the seller release any tenant or surety from liability to pay arrears or accept a surrender of or forfeit any tenancy under which arrears are due; and
      6. if the buyer disposes of the lot prior to recovery of all arrears obtain from the buyer’s successor in title a covenant in favour of the seller in similar form to part 3 of this condition G11.
    3. Where the seller has the right to recover arrears it must not without the buyer’s written consent bring insolvency proceedings against a tenant or seek the removal of goods from the lot.

    G12. Management

    1. This condition G12 applies where the lot is sold subject to tenancies.
    2. The seller is to manage the lot in accordance with its standard management policies pending completion.
    3. The seller must consult the buyer on all management issues that would affect the buyer after completion (such as, but not limited to, an application for licence; a rent review; a variation, surrender, agreement to surrender or proposed forfeiture of a tenancy; or a new tenancy or agreement to grant a new tenancy) and:
      1. the seller must comply with the buyer’s reasonable requirements unless to do so would (but for the indemnity in paragraph (iii)) expose the seller to a liability that the seller would not otherwise have, in which case the seller may act reasonably in such a way as to avoid that liability;
      2. if the seller gives the buyer notice of the seller’s intended act and the buyer does not object within five business days giving reasons for the objection the seller may act as the seller intends; and
      3. the buyer is to indemnify the seller against all loss or liability the seller incurs through acting as the buyer requires, or by reason of delay caused by the buyer.

    G13. Rent deposits

    1. This condition G13 applies where the seller is holding or otherwise entitled to money by way of rent deposit in respect of a tenancy. In this condition G13 “rent deposit deed” means the deed or other document under which the rent deposit is held.
    2. If the rent deposit is not assignable the seller must on completion hold the rent deposit on trust for the buyer and, subject to the terms of the rent deposit deed, comply at the cost of the buyer with the buyer’s lawful instructions.
    3. Otherwise the seller must on completion pay and assign its interest in the rent deposit to the buyer under an assignment in which the buyer covenants with the seller to:
      1. observe and perform the seller’s covenants and conditions in the rent deposit deed and indemnify the seller in respect of any breach;
      2. give notice of assignment to the tenant; and
      3. give such direct covenant to the tenant as may be required by the rent deposit deed.

    G14. VAT

    1. Where a sale condition requires money to be paid or other consideration to be given, the payer must also pay any VAT that is chargeable on that money or consideration, but only if given a valid VAT invoice.
    2. Where the special conditions state that no VAT option has been made the seller confirms that none has been made by it or by any company in the same VAT group nor will be prior to completion.

    G15. Transfer as a going concern

    1. Where the special conditions so state:
      1. the seller and the buyer intend, and will take all practicable steps (short of an appeal) to procure, that the sale is treated as a transfer of a going concern; and
      2. this condition G15 applies.
    2. The seller confirms that the seller
      1. is registered for VAT, either in the seller’s name or as a member of the same VAT group; and
      2. has (unless the sale is a standard-rated supply) made in relation to the lot a VAT option that remains valid and will not be revoked before completion.
    3. The buyer confirms that:
      1. it is registered for VAT, either in the buyer’s name or as a member of a VAT group;
      2. ii. it has made, or will make before completion, a VAT option in relation to the lot and will not revoke it before or within three months after completion;
      3. article 5(2B) of the Value Added Tax (Special Provisions) Order 1995 does not apply to it; and
      4. it is not buying the lot as a nominee for another person.
    4. The buyer is to give to the seller as early as possible before the agreed completion date evidence:
      1. of the buyer’s VAT registration;
      2. that the buyer has made a VAT option; and
      3. that the VAT option has been notified in writing to HM Revenue and Customs;

      and if it does not produce the relevant evidence at least two business days before the agreed completion date, condition G14(1) applies at completion.

    5. The buyer confirms that after completion the buyer intends to:
      1. retain and manage the lot for the buyer’s own benefit as a continuing business as a going concern subject to and with the benefit of the tenancies; and
      2. collect the rents payable under the tenancies and charge VAT on them.
    6. If, after completion, it is found that the sale of the lot is not a transfer of a going concern then:
      1. the seller’s conveyancer is to notify the buyer’s conveyancer of that finding and provide a VAT invoice in respect of the sale of the lot;
      2. the buyer must within five business days of receipt of the VAT invoice pay to the seller the VAT due; and
      3. if VAT is payable because the buyer has not complied with this condition G15, the buyer must pay and indemnify the seller against all costs, interest, penalties or surcharges that the seller incurs as a result.

    G16. Capital allowances

    1. This condition G16 applies where the special conditions state that there are capital allowances available in respect of the lot.
    2. The seller is promptly to supply to the buyer all information reasonably required by the buyer in connection with the buyer’s claim for capital allowances.
    3. The value to be attributed to those items on which capital allowances may be claimed is set out in the special conditions.
    4. The seller and buyer agree:
      1. to make an election on completion under Section 198 of the Capital Allowances Act
      2. 2001 to give effect to this condition G16; and
      3. to submit the value specified in the special conditions to HM Revenue and Customs for the purposes of their respective capital allowance computations.

    G17. Maintenance agreements

    1. The seller agrees to use reasonable endeavours to transfer to the buyer, at the buyer’s cost, the benefit of the maintenance agreements specified in the special conditions.
    2. The buyer must assume, and indemnify the seller in respect of, all liability under such contracts from the actual completion date.

    G18. Landlord and Tenant Act 1987

    1. This condition G18 applies where the sale is a relevant disposal for the purposes of part I of the Landlord and Tenant Act 1987.
    2. The seller warrants that the seller has complied with sections 5B and 7 of that Act and that the requisite majority of qualifying tenants has not accepted the offer.

    G19. Sale by practitioner

    1. This condition G19 applies where the sale is by a practitioner either as seller or as agent of the seller.
    2. The practitioner has been duly appointed and is empowered to sell the lot.
    3. Neither the practitioner nor the firm or any member of the firm to which the practitioner belongs has any personal liability in connection with the sale or the performance of the seller’s obligations. The transfer is to include a declaration excluding that personal liability.
    4. The lot is sold:
      1. in its condition at completion;
      2. for such title as the seller may have; and
      3. with no title guarantee;

      and the buyer has no right to terminate the contract or any other remedy if information provided about the lot is inaccurate, incomplete or missing.

    5. Where relevant:
      1. the documents must include certified copies of those under which the practitioner is appointed, the document of appointment and the practitioner’s acceptance of appointment; and
      2. the seller may require the transfer to be by the lender exercising its power of sale under the Law of Property Act 1925.
    6. The buyer understands this condition G19 and agrees that it is fair in the circumstances of a sale by a practitioner.

    G20. TUPE

    1. If the special conditions state “There are no employees to which TUPE applies”, this is a warranty by the seller to this effect.
    2. If the special conditions do not state “There are no employees to which TUPE applies” the following paragraphs apply:
      1. The seller must notify the buyer of those employees whose contracts of employment will transfer to the buyer on completion (the “Transferring Employees”). This notification must be given to the buyer not less than 14 days before completion.
      2. The buyer confirms that it will comply with its obligations under TUPE and any special conditions in respect of the Transferring Employees.
      3. The buyer and the seller acknowledge that pursuant and subject to TUPE, the contracts of employment between the Transferring Employees and the seller will transfer to the buyer on completion.
      4. the buyer is to keep the seller indemnified against all liability for the Transferring Employees after completion.

    G21. Environmental

    1. This condition G21 only applies where the special conditions so provide.
    2. The seller has made available such reports as the seller has as to the environmental condition of the lot and has given the buyer the opportunity to carry out investigations (whether or not the buyer has read those reports or carried out any investigation) and the buyer admits that the price takes into account the environmental condition of the lot.
    3. The buyer agrees to indemnify the seller in respect of all liability for or resulting from the environmental condition of the lot.

    G22. Service Charge

    1. This condition G22 applies where the lot is sold subject to tenancies that include service charge provisions.
    2. No apportionment is to be made at completion in respect of service charges.
    3. Within two months after completion the seller must provide to the buyer a detailed service charge account for the service charge year current on completion showing:
      1. service charge expenditure attributable to each tenancy;
      2. payments on account of service charge received from each tenant;
      3. any amounts due from a tenant that have not been received;
      4. any service charge expenditure that is not attributable to any tenancy and is for that reason irrecoverable.
    4. In respect of each tenancy, if the service charge account shows that:
      1. payments on account (whether received or still then due from a tenant) exceed attributable service charge expenditure, the seller must pay to the buyer an amount equal to the excess when it provides the service charge account;
      2. attributable service charge expenditure exceeds payments on account (whether those payments have been received or are still then due), the buyer must use all reasonable endeavours to recover the shortfall from the tenant at the next service charge reconciliation date and pay the amount so recovered to the seller within five business days of receipt in cleared funds;

      but in respect of payments on account that are still due from a tenant condition G11 (arrears) applies.

    5. In respect of service charge expenditure that is not attributable to any tenancy the seller must pay the expenditure incurred in respect of the period before actual completion date and the buyer must pay the expenditure incurred in respect of the period after actual completion date. Any necessary monetary adjustment is to be made within five business days of the seller providing the service charge account to the buyer.
    6. If the seller holds any reserve or sinking fund on account of future service charge expenditure or a depreciation fund:
      1. the seller must pay it (including any interest earned on it) to the buyer on completion; and
      2. the buyer must covenant with the seller to hold it in accordance with the terms of the tenancies and to indemnify the seller if it does not do so.

    G23. Rent reviews

    1. This condition G23 applies where the lot is sold subject to a tenancy under which a rent review due on or before the actual completion date has not been agreed or determined.
    2. The seller may continue negotiations or rent review proceedings up to the actual completion date but may not agree the level of the revised rent or commence rent review proceedings without the written consent of the buyer, such consent not to be unreasonably withheld or delayed.
    3. Following completion the buyer must complete rent review negotiations or proceedings as soon as reasonably practicable but may not agree the level of the revised rent without the written consent of the seller, such consent not to be unreasonably withheld or delayed.
    4. The seller must promptly:
      1. give to the buyer full details of all rent review negotiations and proceedings, including copies of all correspondence and other papers; and
      2. use all reasonable endeavours to substitute the buyer for the seller in any rent review proceedings.
    5. The seller and the buyer are to keep each other informed of the progress of the rent review and have regard to any proposals the other makes in relation to it.
    6. When the rent review has been agreed or determined the buyer must account to the seller for any increased rent and interest recovered from the tenant that relates to the seller’s period of ownership within five business days of receipt of cleared funds.
    7. If a rent review is agreed or determined before completion but the increased rent and any interest recoverable from the tenant has not been received by completion the increased rent and any interest recoverable is to be treated as arrears.
    8. The seller and the buyer are to bear their own costs in relation to rent review negotiations and proceedings.

    G24. Tenancy renewals

    1. This condition G24 applies where the tenant under a tenancy has the right to remain in occupation under part II of the Landlord and Tenant Act 1954 (as amended) and references to notices and proceedings are to notices and proceedings under that Act.
    2. Where practicable, without exposing the seller to liability or penalty, the seller must not without the written consent of the buyer (which the buyer must not unreasonably withhold or delay) serve or respond to any notice or begin or continue any proceedings.
    3. If the seller receives a notice the seller must send a copy to the buyer within five business days and act as the buyer reasonably directs in relation to it.
    4. Following completion the buyer must:
      1. with the co-operation of the seller take immediate steps to substitute itself as a party to any proceedings;
      2. use all reasonable endeavours to conclude any proceedings or negotiations for the renewal of the tenancy and the determination of any interim rent as soon as reasonably practicable at the best rent or rents reasonably obtainable; and
      3. if any increased rent is recovered from the tenant (whether as interim rent or under the renewed tenancy) account to the seller for the part of that increase that relates to the seller’s period of ownership of the lot within five business days of receipt of cleared funds.
    5. The seller and the buyer are to bear their own costs in relation to the renewal of the tenancy and any proceedings relating to this.

    G25. Warranties

    1. Available warranties are listed in the special conditions.
    2. Where a warranty is assignable the seller must:
      1. on completion assign it to the buyer and give notice of assignment to the person who gave the warranty; and
      2. apply for (and the seller and the buyer must use all reasonable endeavours to obtain) any consent to assign that is required. If consent has not been obtained by completion the warranty must be assigned within five business days after the consent has been obtained.
    3. If a warranty is not assignable the seller must after completion:
      1. hold the warranty on trust for the buyer; and
      2. at the buyer’s cost comply with such of the lawful instructions of the buyer in relation to the warranty as do not place the seller in breach of its terms or expose the seller to any liability or penalty.

    G26. No assignment

    The buyer must not assign, mortgage or otherwise transfer or part with the whole or any part of the buyer’s interest under this contract.

    G27. Registration at the Land Registry

    1. This condition G27(1) applies where the lot is leasehold and its sale either triggers first registration or is a registrable disposition. The buyer must at its own expense and as soon as practicable:
      1. procure that it becomes registered at Land Registry as proprietor of the lot;
      2. ii. procure that all rights granted and reserved by the lease under which the lot is held are properly noted against the affected titles; and
      3. provide the seller with an official copy of the register relating to such lease showing itself registered as proprietor.
    2. This condition G27(2) applies where the lot comprises part of a registered title. The buyer must at its own expense and as soon as practicable:
      1. apply for registration of the transfer;
      2. provide the seller with an official copy and title plan for the buyer’s new title; and
      3. join in any representations the seller may properly make to Land Registry relating to the application.

    G28. Notices and other communications

    1. All communications, including notices, must be in writing. Communication to or by the seller or the buyer may be given to or by their conveyancers.
    2. A communication may be relied on if:
      1. delivered by hand; or
      2. made electronically and personally acknowledged (automatic acknowledgement does not count); or
      3. there is proof that it was sent to the address of the person to whom it is to be given (as specified in the sale memorandum) by a postal service that offers normally to deliver mail the next following business day.
    3. A communication is to be treated as received:
      1. when delivered, if delivered by hand; or
      2. when personally acknowledged, if made electronically; but if delivered or made after 1700 hours on a business day a communication is to be treated as received on the next business day.
    4. A communication sent by a postal service that offers normally to deliver mail the next following business day will be treated as received on the second business day after it has been posted.

    G29. Contracts (Rights of Third Parties) Act 1999

    No one is intended to have any benefit under the contract pursuant to the Contract (Rights of Third Parties) Act 1999.

    G30. Extra General Conditions:

    SPECIAL CONDITIONS OF SALE

    Words in bold type have special meanings, which are defined in the Glossary.

    Words that are neither in square brackets nor in italics constitute the special conditions applicable to the relevant lot.

    References to the general conditions are for convenience only and are not intended to be comprehensive.

    Lot number ……...........................................................................................................................................................

    Name and address of the seller

    [Name and address]

    Name, address and reference of the seller’s conveyancer

    [Name, address and reference]

    Brief description of the lot (see condition G1(1))

    [Postal address]

    Rights to be granted (see condition G1(1)) None.

    [Details]

    Rights to be reserved (see condition G1(1)) None.

    [Details]

    Exclusions (see condition G1(1)) None.

    [Details]

    Tenancies (see condition G1(2)) There are no tenancies.

    [The tenancies are listed in the tenancy schedule.]

    What the sale is subject to (see condition G1)

    The matters set out in the general conditions

    [and]

    [list existing covenants and encumbrances and any new ones to be created on sale]

    Deposit (see condition G2)

    10% of the price to be paid to the auctioneer and held by the auctioneer (or, if the auctioneer chooses, the seller’s conveyancer) as stakeholder.

    [[10%] of the price [plus VAT] to be held by [ ] as [stakeholder][agent for the seller]]

    Insurance (see condition G3)

    For the period from and including the contract date up to completion the seller is to insure the lot.

    [The seller has no obligation to insure the lot after the contract date.]

    Title (see condition G4) Freehold.

    [Leasehold brief description of terms of lease]

    Registered or unregistered?

    Registered

    [at name of land registry with quality of title title number number]

    [Unregistered commencing with describe root of title]

    Title guarantee (see condition G4(3))

    Full title guarantee, subject to condition G4(3).

    [Limited title guarantee]

    [No title guarantee, for such right and title as the seller may have]

    [As set out in the transfer]

    Transfer (see condition G5)

    There is no prescribed form of transfer.

    [A copy of the prescribed form of transfer has been made available prior to the auction.]

    [The transfer is to contain the following provisions: ]

    Agreed completion date (see condition G6(1))

    Twenty business days after the contract date.

    [Date]

    Interest rate (see condition G10)

    4% over Barclays Bank Base rate from time to time.

    [[ ]% over [ ] base rate from time to time]

    Arrears (see condition G11)

    Parts 1 and 3 of condition G11 apply.

    [Parts 1 and 2 of condition G11 apply and details of arrears are set out in the arrears schedule.]

    VAT (see conditions G14 and 15)

    VAT is not payable as the transaction is exempt.

    [VAT is payable on completion.]

    [The sale is intended to be a transfer of a going concern to which condition G15 applies.]

    Capital allowances (see condition G16) No capital allowances are available.

    [Capital allowances are available in respect of the following items, to which the value attributed is ]

    Maintenance agreements (see condition G17) There are no maintenance agreements.

    [Details of maintenance agreements are:

    Details ]

    TUPE (see condition G20)

    There are no employees to which TUPE applies.

    [Details of the contracts of employment for those employees to whom TUPE applies are: Details ]

    Environmental (see condition G21) Condition G21 does not apply.

    [Condition G21 applies. The following reports have been supplied by the seller:

    Details

    Warranties (see condition G25)

    There are no available warranties.

    [The following warranties are to be assigned to or held in trust for the buyer: Details ]

    Amendments to the general conditions None.

    [The following conditions replace the general conditions of the same number: Details ]

    Extra special conditions None. [Details ]

    SPECIAL CONDITIONS OF SALE

    ARREARS SCHEDULE

    These are the arrears referred to in condition G11:

    Property

    Current tenant

    Current rent

    Date last rent paid

    SPECIAL CONDITIONS OF SALE

    TENANCY SCHEDULE

    The lot is sold subject to and with the benefit of the tenancies listed below:

    Property

    Date

    Original Landlord

    & Tenant

    Current

    Tenant

    Term

    Current

    Rent