Rules

Rules

 

Sandlers adheres to a strict code of ethics and compliancy with the laws governing Auctions.

Please take the time to read the various legal agreements below and download the PDF versions for completion and signature.

If you have any queries in respect of the agreements please feel free to contact us.

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Auction Rules AUCTION RULES
Auction Terms and Conditions AUCTION TERMS AND CONDITIONS
Auction Terms Annexure A TERMS – ANNEXURE A (SALE OF LAND)
Auction Terms Annexure B TERMS – ANNEXURE B (SALE IN EXECUTION)
Suretyship for purpose of Registration SURETYSHIP FOR PURPOSES OF REGISTRATION

 


AUCTION RULES

DATE OF AUCTION:

LOCATION OF AUCTION:

TIME OF AUCTION*:

REASON FOR AUCTION**:

*Note that the auction shall not be delayed to enable any specific person to take part in the auction.

**This is only required should the reason be other than for the normal and voluntary disposal of goods by owner.

AUCTIONEER’S BANKING DETAILS:

1. This auction is held subject to a reserve price or an upset price;

1.1 The seller’s right to bid at the auction up to the reserve price on behalf of and a proxy or a registered bidder or owner but shall not be entitled to make a bid equal to or exceeding the reserve price.

2. The goods shall be put up for sale individually or in lots, each lot being regarded as a separate transaction unless otherwise specifically stipulated.

3. Any person who intends to bid at the auction must register prior to the commencement of the auction.

3.1 The auctioneer may not accept bids from unregistered bidders.

3.2 In order to register, bidders must:

3.2.1 complete the requisite Registration Form, including supplying the auctioneer with their identity or passport number, physical address, postal address, telephone number, mobile phone number and email address.

3.2.2 supply the auctioneer with all information required by the Financial Intelligence Centre Act 38 of 2001 and the Regulations published thereto (“The FICA Regulations),” which documentation comprises of, inter alia;

3.2.2.1 An Identity Document or any other document that will satisfy the auctioneer as to the bidder’s identity number, photograph, full name and date of birth obtained from an independent source;

3.2.2.2 A document issued by the South African Revenue Service bearing the bidder’s income tax reference number and name;

3.2.2.3 A utility bill or other documentation verifying the residential address of the bidder.

3.2.2.4 It is at the sole discretion of the auctioneer to determine whether any documentation supplied by the bidder satisfies the stipulated FICA Regulation requirements.

3.2.3 pay a refundable registration deposit of R

3.3 Any person who attends the auction to bid on behalf of (“the Agent”) another person (“the Principal”) must produce a document authorizing the Agent to do so.

3.3.1 In the event that the Principal is a natural person, a Letter of Authority must be provided, meeting the requirements of the FICA Regulations, as outlined above.

3.3.2 In the event that the Principal is a juristic person, a Letter of Authority on the letterhead of the Principal must be provided, along with a signed Resolution (or certified copy thereof) authorizing the Agent.

3.3.3 At the sole discretion of the auctioneer, the Principal may be asked to sign as surety, binding him/herself on behalf of the Principal in favour of the Seller for all indebts incurred by the Principal in the course and conclusion of the auction. Should the Principal be a juristic person, the auctioneer may refuse to register the bidder should the suretyship not be signed.

3.4 Should the bidder intend to purchase any item through a financial institution, proof of approved finance must be submitted to the auctioneer on registration however no item may be purchased subject to finance approval.

3.5 The bidder’s identity will be entered in the Bidder’s Record and signed by the bidder.

4. The bidder’s record and the vendor roll are available for inspection during normal hours, free of charge.

5. Bidders may inspect the goods on offer one day preceding the auction and on any other date specified in the advertisement.

5.1 Should the prospective bidder require particulars pertaining to the sale of a motor vehicle, same are available on a notice attached to the motor vehicle during inspection, alternatively, may be made available on request to the auctioneer.

6. All bidders shall be deemed to have read these Rules and the Terms and Conditions of Auction before registration.

6.1 The auctioneer is entitled to proceed with the auction without reading the Rules and Terms and Conditions, should there be no changes since publication and advertisement of same. Should any bidders object, the Rules and/or Terms and Conditions will be read aloud prior to the commencement of the auction.

7. The auctioneer will have the right to control, regulate and record the bidding at all times.

7.1 All bids will be taken in South African Currency. Each bid will constitute an offer to the Seller on the purchase price.

7.2 No bid may be withdrawn until the purchaser has determined. The auctioneer shall be entitled to withdraw or reject any bid at his/her sole discretion.

7.3 The auctioneer shall not deviate from the sequences of goods/lots as advertised, which sequence shall be to dispense with individual goods of offer and then to proceed to lots.

7.4 Each bidder will use the paddle (or alternate device) provided to participate and bid in the auction.

7.5 The auctioneer shall not permit bidding on any item not advertised.

7.6 No “ringing” (or any related activity pertaining to collusion and price fixing) shall be permitted and the auctioneer shall be entitled to suspend or terminate the auction, or to prohibit those bidders from participating further in the auction.

7.7 Any dispute between bidders shall be decided at the auctioneer’s discretion and with reference to the auctioneer’s record. The auctioneer may, at his/her sole discretion, re-auction any goods where a dispute arises as to the identity of the highest bidder.

7.8 Any bona fide error in the conduct or conclusion of the sale may be corrected by the auctioneer. Should same be incapable of correction, the auction will be deemed not to have taken place and no party to the auction shall have any claims against the auctioneer or seller arising out of the cancellation of the auction.

7.9 Until the conclusion of the sale, a bid may be retracted however, at the fall of the hammer, the sale of the goods shall be finally and irrevocably concluded, after which time, no bid may be withdrawn or amended.

7.10 The auctioneer’s decision is final and binding on all bidders.

8. A successful bid shall constitute an offer for acceptance by the seller.

8.1 The bid shall be communicated to the seller, who shall communicate its acceptance of the offer within working days, failing which, the offer will lapse.

8.2 In the case of the sale of movable property, the purchaser shall sign the “Conditions of Sale” and make payment into the auctioneer’s trust account within 24 (twenty-four) hours of the acceptance being communicated to him/her.

8.2.1 Should payment not be made timeously, the auctioneer shall declare the transaction cancelled and sell the item to the second-highest bidder.

8.2.2 All moneys paid for the benefit of the seller, minus the agreed commission, shall be held in the auctioneer’s trust account.

8.3 In the case of a sale of immovable property, the purchaser shall sign the requisite “Conditions of Sale of Immovable Property.”

8.3.1 Should same form not be duly completed and signed, the auctioneer shall declare the transaction cancelled and sell the item to the second-highest bidder.

8.4 In the event that the sale requires the consent of any statutory authority or any court of law, the sale shall be subject to the granting of such consent.

9. The total cost of advertising and conducting this auction is R

10. Unless otherwise agreed upon, the auctioneer’s commission shall be equivalent to 10% (10 percent) of the purchase price, excluding VAT.

These rules comply with section 45(4) of the Consumer Protection Act 68 of 2008 and Regulation 21 thereto.

SIGNED AT ON

PURCHASER AUCTIONEER

NAME:

 

 


 

AUCTION TERMS & CONDITIONS

The sale of the property by public auction is subject to the following conditions of sale. The purchaser shall be deemed to have read and understood the terms contained herein and undertakes to sign the Terms and Conditions on demand. Further, the purchaser shall be bound by all Terms and Conditions specified during the announcement of the auction, irrespective of whether it is present at such time the announcements are made.

1. Every prospective bidder must read the Rules of Auction and will be deemed to have read an understood the contents thereof upon commencement of the auction. The signatory hereof consents to be bound by the contents thereof and bidders are accordingly advised not to participate in the auction unless they have read and familiarised themselves with the Rules of Auction.

2. Until the conclusion of the sale, a bid may be retracted however, at the fall of the hammer, the sale of the goods shall be finally and irrevocably concluded, after which time, no bid may be withdrawn or amended.

2.1. The bid shall be communicated to the seller, who shall communicate its acceptance of the offer within working days, failing which, the offer will lapse.

2.2. In the case of the sale of movable property, the purchaser shall sign this document and make payment of the deposit, alternatively full purchase price, into the auctioneer’s trust account within 24 (twenty-four) hours of the acceptance being communicated to him/her.

2.3. Should payment not be made timeously, the auctioneer shall declare the transaction cancelled and sell the item to the second-highest bidder.

2.4. All moneys paid for the benefit of the seller, minus the agreed commission, shall be held in the auctioneer’s trust account, with the interest to accrue to the benefit of the purchaser.

2.5. In the case of a sale of immovable property, the purchaser also shall sign the “Conditions of Sale of Immovable Property,” annexed hereto, marked annexure “A.”

2.6. In the case of a sale in execution of a Court Order, the purchaser also shall sign the “Conditions of Sale of Property in Execution,” annexed hereto, marked annexure “B.”

2.7. In the case of a sale pursuant to sequestration or liquidation proceedings, the purchaser also shall sign the “Conditions of Sale” annexed hereto, marked annexure “D.”

2.8. In the case of a sale of property in a deceased estate, the purchaser also shall sign the “Conditions of Sale” annexed hereto, marked annexure “D.”

2.9. Should this document and any requisite annexure form not be duly completed and signed, the auctioneer shall declare the transaction cancelled and sell the item to the second-highest bidder.

2.10. In the event that the sale requires the consent of any statutory authority or any court of law, then the sale is subject to the granting of such consent.

3. All property is sold voetstoets (as is) and entirely at the risk of the purchaser. Neither the seller or auctioneer shall thus be liable for any latent or patent defects contained therein, not do they give any warranties or make any representations as to the condition or state of any of the goods.

3.1. In the case of immovable property, the purchaser purchases the property subject to all conditions and servitudes specified in the current and prior title deeds and diagrams and any other rights of any conditions imposed by a statutory authority.

4. Ownership shall pass to the purchaser upon payment of the full purchase price, VAT (if applicable), auctioneer’s commission and any additional auction costs as set out in the Rules of Auction.

4.1. In the case of the sale of immovable property, ownership shall pass upon registration of the transfer of the property from the seller’s name into the purchaser’s name.

5. Payment is due in full by the highest bidder immediately upon receiving an invoice of purchases made.

5.1. At the fall of the hammer, an initial deposit of 10% (ten percent) of the purchase price in payable, in addition to the auctioneer’s commission.

5.1.1. All deposits shall be payable directly to the auctioneer and shall be held in an interest-bearing trust account, with interest to accrue to the benefit of the purchaser.

5.1.2. In the case of the sale of immovable property, the deposit shall be held upon registration of the transfer of the property into the purchaser’s name.

5.2. The balance of the purchase price shall become due within ­­_________hours of the acceptance being communicated to the purchaser.

5.2.1. In the case of the sale of immovable property, the balance of the purchase price shall be payable upon registration of the transfer of the property into the purchaser’s name to the seller’s appointed conveyancers, or as stipulated in the Deed of Sale.

6. The purchaser shall remove at its own expense the sold goods at the conclusion of the auction and after full payment has been made in terms of Clause 5.

6.1. Delivery of the goods shall be deemed to have been made to the Purchaser upon payment of the invoice.

6.2. In the case of the sale of motor vehicles, or any other items that require the completion and delivery of documents by the Seller or any third party, the auction house shall not be obliged to deliver the goods until the relevant and requisite documentation has been duly signed and delivered to the auction house.

6.2.1. The delivery of motor vehicles shall be upon delivery of the keys.

6.3. Should the purchaser fail to remove the purchased goods, a storage fee of R shall be levied per item per day and be due and payable by the purchaser upon demand. In the absence of any written agreement between the purchaser and auctioneer to store the goods, any purchased goods not removed after a period to be stipulated by the auctioneer, shall be sold by the auctioneer at the expense of the purchaser.

7. Risk on each item passes to the purchaser on fall of the hammer and accordingly, the purchaser shall be liable for the costs and repair of any damage caused to the purchased goods, caused to the purchaser and/or caused to any other item while removing the sold goods from the auction house.

8. Should the any party breach any term or obligation to which it is bound in terms of this agreement, written notice thereof shall be delivered to the party in breach affording a period of 7 (seven) days to remedy same.

8.1. Upon expiry of the notice, the party shall be entitled to claim specific performance from the party in breach or cancel the agreement and its right to claim damages in respect thereof is fully reserved.

8.1.1. The auctioneer shall be entitled to claim payment of the auctioneer’s commission.

8.2. The party in breach shall be liable to pay any costs incurred by the auctioneer and/or seller as a result of the breach, including administration costs, storage costs and legal costs on an attorney and own client scale, including collection commission.

9. The parties choose their domicillium citandi et executandi at the following address:

SELLER:

PURCHASER:

10. The parties consent to the jurisdiction of the Magistrates’ Court in any matters pertaining to the obligations and due performance in terms of this agreement, however, this shall not preclude either party from approaching the High Court of South Africa for any relief sought.

11. These terms and conditions, read with the Rules of Auction, constitute the whole agreement between the parties and no agreement, representation or warrant between the parties shall have any effect recorded in a written document and signed between the parties.

12. No extension of time, waiver, indulgence or suspension of any provisions of this agreement which any party hereto may have given shall be binding unless recorded in a written document and signed between the parties. No indulgence which the auctioneer may grant to the purchaser shall prejudice or constitute a waiver of the rights of the auctioneer or the seller, who shall not thereby be prejudiced from exercising any rights which may have arisen in the past or may arise in the future.

13. The parties signing this document confirm that they have read and understood all of the terms and conditions herein and agree that they are bound hereto.

14. By signature hereof, the signatory as a duly authorised agent/representative of the purchaser at the auction, binds him/herself as surety and co-principal debtor together with the purchaser in favour of the seller and/or auctioneer for the due fulfilment by the purchaser of all the purchaser’s obligations and liabilities arising out of the sale. In this regard, the signatory, as surety and co-principal debtor, renounces the legal exceptions of excussion and division, and all other legal exceptions, with which the signatory is fully acquainted and understands.

SIGNED AT ON

PURCHASER

Name:

Signature:

SURETY (if applicable)

Name:

Signature:


 

ANNEXURE A

TERMS AND CONDITIONS IN RELATION TO THE SALE OF LAND

a) The sale shall be subject to confirmation by the Seller (or the Master of the High Court or the executor of the estate of the late (name of deceased) or the trustee of the insolvent estate of (name)) and pending such confirmation or otherwise, the highest bidder shall not be entitled to withdraw its bid.

b) Upon acceptance of the sale, a written agreement of sale shall be signed by the parties and registration of the transfer of land shall be effected by the conveyancers elected by the seller and shall take place as soon as is reasonably possible after the effective date.

c) The purchaser is obliged to sign, on demand, all documentation required for the purposes of registration of transfer and to pay, on demand, and notwithstanding the fact that the seller may not then be in a position to pass transfer of ownership, all costs associated with the registration or transfer, including but not limited to;

i. Transfer duty or VAT (if applicable);

ii. Conveyancer’s fee associated with the registration of transfer and calculated in accordance with the prescribed tariff;

iii. Survey charges (if any);

iv. Road construction and sewerage and stormwater drainage installation charges (if any);

v. Costs associated with obtaining electrical and/or beetle and/or any other certificate as to the condition of the property as may be required by the purchaser; and

vi. All other legal costs and charges incidental to and necessary in order to effect registration of transfer of the property into the name of the purchaser.

d) The seller shall be liable for all rates, taxes and municipal charges payable and any levies and charges due to the body corporate and/or homeowners association on the property up until date of transfer and the conveyancer is authorised to satisfy these payments from the funds held by the auctioneer from the purchase price.

i. The purchaser shall be liable for all rates, taxes and municipal charges payable and any levies and charges due to the body corporate and/or homeowners association after date of transfer.

e) Possession and occupation of the property is subject to existing leases and tenancies and the rights of any occupiers of the property. All revenue accruing and all expenditure in respect of the property shall be for the account of the purchaser on registration of transfer.


 

ANNEXURE B

TERMS AND CONDITIONS IN RESPECT OF SALES IN EXECUTION

1 Sale

1.1 The sale is conducted in accordance with the provisions of Rule 46 of the Uniform Rules of the High Court, as amended, as well as the provisions of the Consumer Protection Act, No 68 of 2008, the Regulations promulgated thereunder and the “Rules of Auction”, where applicable.

1.2 The property shall be sold to the highest bidder subject to such reserve price, if any, as may be stipulated by a preferent creditor or local authority in terms of Court Rule 46(5)(a).

1.3 The Execution Creditor shall from date of sale be deemed to have accepted the benefits herein confirmed upon the Execution Creditor.

2 Manner of sale

2.1 The sale shall be for South African Rands and no bid of less than R 100 (One Hundred Rand) in value above the preceding bid will be accepted.

2.2 The execution creditor shall be entitled to cancel the sale at any stage before the auction has commenced. The execution creditor *shall/shall not *(insert the applicable) be entitled to bid at the auction.

2.3 If any dispute arises about any bid, the property may, at the discretion of the auctioneer, immediately again be put up for auction.


 

SURETYSHIP

I, the undersigned,

ID NO:

do hereby bind myself jointly and severally as surety for and co-principal debtor in solidum with the company/ closed corporation / trust/ partnership / association/ any other person or entity listed below:

(hereinafter “the Debtor”)

Unto and in favour of

SELLER

(hereinafter “the Creditor”)

For the payment of all and any sums of money which the Debtor may now and from time to time hereafter owe or be indebted to the Creditor or its successors howsoever arising.

It is agreed and declared that:

1. All admissions and acknowledgements of indebtedness by the Debtor shall be binding upon me and that the Creditor shall be at liberty, without affecting its rights hereunder, to release securities and to give time to or compound or make any other arrangements with the Debtor without reference to or approval by me,

2. In the event of liquidation, judicial management, insolvency, composition or compromise:

2.1. No such liquidation, judicial management, insolvency or compromise and no dividend/s or payment/s which the Creditor may receive from the Debtor or any person or persons, shall prejudice the rights of the Creditor to recover from me to the full extent of this Suretyship any sum which, after the receipt of such dividend/s or payment/s may remain owing by the Debtor;

2.2. I will not file any claim against the Debtor in competition with the Creditor.

3. The benefit of the legal exceptions of excussion and division, “ordinis seu excussionis et devisions”, “non causa debiti”, “revision of accounts”, are hereby renounced, the force and effect whereof is hereby acknowledged and it is agreed that this Suretyship is to be in addition to and without prejudice to any other suretyship/s and security/ies now or hereafter to be held by the creditor and that it shall remain in force as a continuing security notwithstanding any intermediate settlement of account and notwithstanding the death or legal disability of the surety/ies.

4. It is hereby agreed that notwithstanding any part payment in terms hereof, no right to any cession of act in respect or such part payment or action against the Debtor or against any other surety for the debtor in respect thereof shall accrue unless and until the indebtedness of the Debtor to the Creditor shall have been discharged in full.

5. A certificate by the creditor as to the amount owing by the Debtor and to the effect that the due dates of payment of such amount has arisen shall, for the purpose of provisional sentence or otherwise, be sufficient and satisfactory proof of the facts therein stated until the contrary shall have been proved.

6. And I choose domicilium citandi et executandi for all purposes at :

and all notices required to be given to us in terms hereof shall be considered duly given if posted to us at the said address.

7. This Suretyship shall not be withdrawn or cancelled unless and until all indebtedness, commitments and obligations of the Debtor to the Creditor shall have been fully discharged.

DATED AT ON

AS WITNESSES:

1. ______________________________

Name:

Address:

Tel:

2. ______________________________

Name:

Address:

Tel: ________________________________

FOR AN ON BEHALF OF THE CREDITOR

(DULY AUTHORISED)

DATED ON

AS WITNESSES:

3. ______________________________

Name:

Address:

Tel:

4. ______________________________

Name:

Address:

Tel:

________________________________

SURETY


 

You can find information on your rights at auction according to the CPA here

Graham Sandler

SAIA