Property Auctions

Summary

In recognition of the growth in auctions and the predominance of online platforms, the RICS Real Estate Auction Group has launched this Consumer Guide to promote the buying and selling of property by auction. The guide takes consumers behind the scenes and helps them understand what they should expect when buying and selling through an auction firm whose directors are regulated by RICS.

It is expected that chartered surveyors whose firms conduct auctions will be familiar with this guide as it sets out the requirements contained within the existing RICS Auctioneers selling real estate standard.

A lot has changed in the property auction market since the start of the pandemic. Online bidding with or without live streaming has been adopted as the method of auction by sellers, buyers and the auctioneers alike.

The availability of relatively straight forward online bidding platforms has facilitated the auctioning of a greater number of properties than was possible when auctions were held in the room alone. This has permitted more flexibility in when auctions are held and has increased the convenience to bidders. Consequently, it has opened up the market to a far greater number of bidders; many for the first time.

Best practice and the RICS Auctioneers selling real estate standard

RICS members who operate auctions are bound by the RICS Auctioneers selling real estate standard. This was published for members in 2018.

The RICS Auctioneers selling real estate standard outlines the principles that shape the culture of fairness and transparency that underpin all activities undertaken by real estate auction firms.

Real estate auctioneering is an integral part of mainstream agency and has many benefits for buyers and sellers alike. It depends for its success on trust and the highest ethical practice and professional standards.

This consumer guide has been borne out of RICS Auctioneers selling real estate standard and as such there may be parts of the guide which contain technical information where professional advice may be needed by the consumer.

What’s in the guide

The guide is written for both sellers and buyers and covers the benefits of selling and buying at auction and the different types of auction.

For the seller – how to choose an auction firm and the key terms of appointment. It explains the importance of accurate and comprehensive sales particulars and the legal pack which the seller and their solicitor have to provide, and deals with what happens on the auction day.

For the buyer – what’s involved in preparing for the purchase and the importance of thoroughly researching the information provided by the seller to include the particulars, the conditions of sale and the legal pack. It covers taking professional advice and the need for the buyer to keep in touch with the auction firm up to the time the property is offered, in case there have been any changes.