Auction Guide

ENSURE YOU READ, UNDERSTAND AND ACCEPT THE TERMS AND CONDITIONS

You will be asked to read and accept our Online Auction Terms and Conditions. Additionally, there may be specific documentation relating to the sale of the property you’re registering to bid on that will need to be read and accepted before you are able to bid.

Once accepted, you will receive a copy of the document(s) via email for your own records.

PROVIDE DETAILS OF YOUR CHOSEN SOLICITOR

You will be asked to provide details of your chosen solicitor, so that in the event of you winning the lot we can initiate the necessary legal proceedings between yours and the vendor’s solicitors.

COMPLETE AN ONLINE ANTI-MONEY LAUNDERING CHECK

BP Auctions are required by law to carry out an online anti-money laundering check on all persons wishing to bid. You will be asked to provide information to verify your identity, including your date of birth, addresses for the last 3 years and at least one of passport, driving licence or national insurance number.
This check leaves a ‘soft footprint’ on your credit report (but should not affect your credit rating).

REGISTER YOUR CREDIT OR DEBIT CARD FOR THE BIDDER SECURITY

In order to bid online you will be required to register a credit or debit card for the bidder security deposit. We use Stripe who provide a secure, online card registration facility, and they will attempt to place a ‘hold on funds’ on your account for the bidder security amount (often known as a ‘payment shadow’ as no money is taken at this stage). The bidder security amount will be clearly displayed when registering your card.

On the fall of the electronic gavel, the winning bidder’s card will be automatically debited for the bidder security amount, whilst all the unsuccessful bidder’s cards will have their shadow payments released (this can take several days depending on the card provider).

Please note that you can only register your card for the bidder security within 6 days of the auction’s scheduled end date. If you register to bid before this time then you will be shown a payment registration holding page, and we will subsequently email you as soon as the payment window opens so you can log back in and register your card.

For more information about the payment process please read the detailed explanation at the end of this document.

FINAL STEP – AUCTIONEER REVIEW

Once you have completed the bidder registration steps, BP Auctions will review your registration to bid. We may contact you to obtain some additional information, so that we can electronically verify your identity with a credit reference agency – this is a quick and simple process which leaves a ‘soft footprint’ and doesn’t affect your credit score. You will be notified by email as soon as you have been approved to bid.

RECOMMENDED DUE DILIGENCE BEFORE BIDDING

In general terms, you are strongly advised to view the property and take professional advice as to its condition and suitability. You should also ensure that you thoroughly read and understand the legal pack and any other associated documentation available online, and take proper legal advice accordingly. Finally, understand the contract you are entering into and the financial commitment that you will be liable for should you be the successful purchaser.

UNDERSTAND THE GUIDE PRICE AND RESERVE PRICE

What is a Guide Price?
A Guide Price is an indication as to where the Reserve is currently set. It is not necessarily what the auctioneer expects to sell the lot for, and should not be taken as a valuation or estimate of sale price. The reserve will not exceed the Guide Price by more than 10% if it is a single figure Guide price, and if a Guide Price range is quoted, the Reserve will fall within that range.

What is a Reserve Price?
The Reserve is the minimum figure that the Auctioneer is currently authorised by the vendor to sell the property for. Please note that Reserve is liable to change throughout the course of marketing. The Auctioneer reserves the right to lower the Reserve during the auction to a level that matches the existing highest bid. In the event that there were no further bids, the bidder who placed that ‘highest bid’ will be declared the purchaser at the end of the auction process.

STRESS-FREE BIDDING FROM THE COMFORT OF YOUR OWN HOME

When the auction opens, you will be able to place bids in line with the pre-determined bid increment levels, using the bid increase (+) and decrease (–) buttons provided. Having set your preferred bid amount and clicking the ‘Place Bid’ button, you will be asked to confirm your bid at which point it will be placed.
Every time you submit a bid you will be clearly shown whether your bid was successful, and a full list of all bids is displayed on-screen at all times.

Maximum (proxy) bids
You are not restricted to placing a bid at the minimum bid amount, but can instead increase your bid and place a maximum (proxy) bid in the system. By setting a maximum bid, the system will automatically bid on your behalf to maintain your position as the highest bidder, up to your maximum bid amount. If you are outbid, you will be notified via email so you can opt to increase your bid if you so choose.

How proxy bids work with the reserve price
Virtually every lot is sold subject to a reserve price (the minimum price that the auctioneer is authorised to sell for on the day). When you submit a maximum bid, the actual bid placed by the system will depend on where the reserve price is in relation to your maximum bid, as defined below.
If your maximum bid is below the reserve price

• The system will place an immediate bid at your maximum bid amount.
  If your maximum bid is at or above the reserve price
•  The system will automatically increase your bid to be at the reserve, and will only bid again on your behalf if you are subsequently outbid by another bidder (up to your maximum bid amount).
•  If another bidder has already placed the same maximum bid or higher, they will be the highest bidder at your max bid level and the system will notify you via email so you can place another bid.

NB: Your maximum bid is kept completely confidential – it’s presence or amount are not disclosed to the auctioneer, vendor or any other bidder.

Bidding example:

1. The current bid on a lot is £90,000. The reserve price has been set at £100,000 (not disclosed).
2. Tom wants to bid. The minimum bid amount is £91,000 but Tom decides to place a maximum bid of £97,000. This is below the reserve price, so the system places a bid for Tom at his maximum bid
   amount and he becomes the highest bidder at £97,000.
3. Jane logs on to bid. The minimum bid amount is £98,000 but Jane places a maximum bid of £105,000.
   The system automatically increases Jane’s bid to meet the reserve and she is now the highest bidder at £100,000. However, Jane still has a proxy bid of £105,000 “in the system” which will automatically bid on her behalf if anyone else places a bid.
4. Tom is notified that he has been outbid. If no more bids are placed Jane would win the lot for £100,000.
5. Tom places a bid of £101,000, and Jane’s proxy bid instantaneously outbids him at £102,000 as this is
   the lowest bid required to make her the highest bidder.
6. Tom then places a maximum bid of £105,000. The current bid jumps to £105,000 with Jane as the
   highest bidder as she placed a proxy bid at that amount before Tom did.
7. Tom then places a bid at £106,000 and wins the lot as there are no other bids and it is above reserve.

THE BIDDING EXTENSION WINDOW ELIMINATES ‘BID SNIPING’
Unlike eBay, bid sniping is impossible on our online auction platform. All auctions will close as per their advertised ‘Auction End Date’, however if a bid is placed within the final 60 seconds of the auction’s scheduled end time the auction will be extended by an additional 60 seconds – known as the ‘bidding extension window’.

If a bid is placed in the bidding extension window, the countdown clock will immediately reset to 60 seconds again, and the auction will only finish when an entire 60 second bidding extension window passes without any further bids being placed, i.e. 60 seconds of ‘bidding silence’. This ensures every bidder has a fair and equal opportunity to place another bid.

Do not leave your bid to the last few seconds. It gives you no advantage, you risk your bid not being received by the server in time and you could lose the lot to another bidder.
Bidding is based on the server time and not your device which could be up to 2 seconds behind the server.

LEGAL POSITION WHEN YOU’VE WON THE AUCTION
We offer property for sale by immediate, unconditional contract. This means that the fall of the electronic gavel constitutes an exchange of contracts between the buyer and seller. Both parties are legally bound to complete the transaction – usually within 20 working days following the close of the auction but this will be confirmed within the legal documentation.

WE’LL GUIDE YOU THROUGH TO COMPLETION

If you are the successful purchaser, we’ll be in touch following the online auction to discuss the next steps. The system will take the bidder security amount from your registered credit or debit card (all underbidders will have their hold on funds released); the contract will then be signed on your behalf with copies being sent to both your solicitor and the seller’s solicitor.

FOR MORE INFORMATION CONTACT BP AUCTIONS ON 0121 224 7358