auction house india guide to buying and selling

IndiaIndia

A Guide to Buying and Selling

property auction experts

AH India Guide to Buying.qxp_Layout 1 25/05/2016 17:06

Foreword

This brochure aims to explain more fully the opportunity to

prospective sellers. It also covers the buying process and

gives advice to those thinking of bidding on how to be

successful with a purchase.

Auction House India (AHI) is a joint venture between the

UK’s largest property auctioneer, Auction House (TOPS

Holding PLC) and NU Dimension Advisory LLP, a part of a

four-decade-old business house based in New Delhi, India.

Operating under the brand 'Auction House', we are the

market leader and a pioneer in property auctions in the UK,

having a network of over 40 regional auction rooms

spread across the country. Auction House now presents

the first of its kind in the country - property auction

services under the Auction House India (AHI) brand.

Auction House India (AHI) is the first and foremost

platform for buying and selling properties in the country.

We provide an alternative faster and more certain way for

sellers and buyers.

As the leading auctioneer in the UK, Auction House is

bringing its proven method of “sale by auction” to India.

The properties listed in our catalogue and showing on our

website will be auctioned over two days at a 5 star Hotel

ballroom in Delhi (NCR). Hundreds of interested buyers,

first-time home-owners, deal-hunters, corporates, investors

and high-net worth individuals will be gathered under one

roof to bid competitively against each other.

This brochure aims to explain more fully the opportunity to

prospective sellers. It also covers the buying process and

gives advice to those thinking of bidding on how to be

successful with a purchase.

Our professionals are here to share their experience and

help you to sell, buy or invest in auction with confidence -

and with great results! Get in touch and book a free auction

consultation.

Visit us at www.auctionhouseindia.com

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About Auction House India

Auction House India adopts a modern and dynamic approach to offering high qualityauction facilities to both corporate and independent sellers and buyers. We realise the

importance of the Internet in the modern era of selling property and therefore market allof our auction properties online in addition to using the offline method of auction rooms.Our fresh and forward thinking approach to property trading through auctions has beenwell received throughout the industry. We are very proud to be recognised as offeringextremely high levels of customer service to all of our clients.

Our team has a proven track record in residential and commercial property transactions. AtAHI we have a fresh and energetic approach, providing a quality service that achieves theright results for all parties.

Mr. Saif Nawaz is the founder/director of Auction HouseIndia. Saif is a Management graduate from University ofNottingham, UK and also has a postgraduate degree fromCass Business School (City University, London-UK) in RealEstate Finance & Strategy. A Certified Real Estate Auctioneer(CREA) from Realty Auction School, New York-USA, Saif hasworked on multiple projects throughout his career. Duringhis stay in the UK, he was a Research Associate at CordeaSavills (UK’s largest Property Agent) and was an integral partof launching the company’s USD $200 million India PropertyDevelopment Fund. Saif, a serial entrepreneur since 2008has launched a series of new successful business venturesincluding Candle & Bloom (Retail), Goods On Demand(Industrial Packaging & Printing), Brand New Ventures Pvt.Ltd. (International Business Development Advisory) and MCIFoods LLP (Marketing and Distribution of Ready to EatMeals under Karim’s brand license). His deep-industryknowledge, business acumen and pragmatic approach to lifemake him stand apart as a thorough professional([email protected]).

Auction House India is the first and largest of its kindplatform for buying and selling properties in the country. Weprovide an alternate and a better way of buying and sellingproperties for our clients.


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Saif NawazDirector/Auctioneer


Auction is a New Technique of Buying & Selling

Auctions, as a way of selling properties,goes back many centuries. It is a provenmethod of achieving a desired result.Property auctions in India have previouslybeen linked to either bank foreclosures, loandefault and repossessions. However, all kindof regular properties such as flats, houses,plots, shops and offices can be soldthrough auctions. Auction House India isfocused in reviving the auction way ofselling properties in the country. This is agood thing, as will be seen in this booklet;there can be many potential advantagesfrom selling at auction. The benefits are notlimited to sellers as many buyers feel thatbuying at auction is a simple, open andefficient method of purchase.

Auction House India has begun to use thismethod of sale for the first time in thecountry. The expectation is that many morepeople will choose the auction method inpreference to selling by traditional privatesale system. We are therefore pleased tooffer this Guide to help you decide to sell orbuy at auction.

The aim of Auction House India is to create

a national network of independentauctioneers selling property under acommon brand with high standards ofservice, quality brochures, frequentadvertising which is eye-catching andinformative and a first class website. Thiswill enable sellers to sell their propertieslocally where the best prices can normallybe achieved and where they can beconfident that they have chosen the rightauctioneer. Equally buyers will know thatthey are dealing with a top class firm whoseaim is to attract a wide range of propertiesfrom private clients as well as majorcompanies, institutions and publicauthorities.

Sellers who decide to sell by auction, butwho have loyalty to a particular estateagent, can instruct them to act on a jointagency basis with Auction House India. Weare happy to comply with such anarrangement. Confidence in the Auctionmethod of sale is here to stay and AuctionHouse India has been set up to enable anyseller and local estate agents to sell byauction.


• Auction is the easy, fastest andthe most secure way to sell manydifferent types of properties.

• Auction offers the best chance ofa successful sale.

• Auction sale guarantees the fairmarket price for your propertyand demonstrates that best valuehas been achieved.

• Auction House India has a vast

network of associates and

property agents/broker partners.

We are happy to work with our

associates and broker partners on

a joint instruction basis.

Auction House India offers an opportunity to many sellers

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Selling at Auction

There are many reasons to choose the auction route to sell yourproperty. The list below will give you an understanding as to whyAuction is the better way to sell.

SpeedAuction is the fastest way to sell yourproperty within as little as six-eight weeksfrom you signing the listing agreement withAuction House to completion of thetransaction.

Probability of SuccessAHI gives you a better possibility of sellingyour property than by traditional privateproperty transaction. If you need a definitesale you should consider the Auction Routeto success.

Authorised and ObligatoryWhen the hammer falls on an auctionproperty it signals that contracts have beenexchanged. The buyer is lawfully committedand cannot step back. You can be relaxedand confident of the certainty and securityof the Auction process.

Marketing and PromotionYour property will be advertised innewspapers, on radio, property portals, andextensively mailed to thousands of buyersthrough our database. Your property will befeatured in our action catalogues, which aremailed and emailed to potential buyers andcomprehensively promoted on the webthrough digital marketing campaigns.

Property Viewing DaysAuction House India will arrange viewingdays for your property. In support, one ofour expert property representatives willassist all the potential buyers with theirqueries and be able to explain the propertybenefits. After, we will have openconversations with these potential buyers,and we will keep you regularly informedabout the level of interest generated foryour property.

Competitive BiddingOur main objective is to generate

enthusiastic interest from two or more

prospective buyers and persuade them to

bid against each other on the auction day.

Through sustained bidding only 'best price'

should be achieved on the auction day.

Sometimes buyers are so anxious to

acquire a property that they will put in a

very strong pre-auction offer - if in our view

that figure is unlikely to be reached or

surpassed in the auction room, we will

recommend its acceptance under AHI

terms and conditions, and will facilitate on

exchange of contracts well in advance of

Auction Day.

Guaranteed Best PriceIt is Auction House India’s endeavor to

achieve the highest price for your property

over and above the reserved price. Sale by

auction regularly achieves a higher price

than a traditional real estate sale, and you

can always be sure that your property will

achieve the ‘best price’ on the auction day.

Hassle-free SaleWith traditional private property deals, the

price agreed often isn't the price that you

finally receive. With Auction there is no

haggling, no long drawn out negotiations

or gazundering. Through sale by auction,

buyers are deemed to have fully

understood and researched the property’s

condition prior to bidding and cannot

reduce or re-negotiate the sale price after

the hammer falls.


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Time frame

Whether you are going abroad, under

financial pressure or desperately need to

sell your property quickly, then Auction is

the right path for you to follow. You will be

aware of the Auction date and thereafter-

legal formalities take place usually within 30

days. This timeframe is fixed and legally

binding to both parties and is detailed in

the legal document prepared for each

property.

Continuing Rental Income

Auction is a method by which people can

sell rented out properties as tenanted

investments. You will keep receiving the

rental income until the property is sold and

the property title is transferred to the new

buyer of the property. AHI sells

investments, buy to let and rented

properties that are residential, commercial

or mixed use.


A wide range of property types sell well at auction

Many types of property sell well at Auction, and if you have one thatfalls into any of these categories you should definately consider theAuction route. Please go through the following property type listand if you find a match then give Auction House India a call or visitour website www.auctionhouseindia.com.

Properties requiring ImprovementsProperties in need of renovation are idealfor selling via the Auction route. They are ingreat demand from renovation andrefurbishment specialists and from privatebuyers who are keen to undertake a projectfor self-use or for resale. Such propertiesalso attract buy-to-let investors who carryout the renovations then retain them aslong term investments.

Rented PropertiesResidential houses, flats/apartments, retailshops/showrooms and commercial officespace with tenants sell well at Auction. Weinvite and get a number of investorlandlords bidding competitively. You neednot serve notice to your tenants, and willbenefit because rental income continues tobe received right up to completion date.

Residential InvestmentsWhether it is a building or a block ofmultiple flats/apartments, all can be sold atAuction as valuable investments. Here it isthe rent level (the percentage return) thatdetermines the sale price, just as much asthe building itself. Auction House offerssellers a high marketing profile andcompetitive bidding platform. Additionally,AHI offers the certainty of the sale whenthe hammer comes down.

Development PropertiesEmpty residential or commercial buildingswith potential for conversion or change ofuse can all sell well at Auction. In some

locations a change to commercial statuscan significantly add to the value of aproperty. Sometimes there may be scopeor space for additional construction or tosubstantially enlarge the property. Auctionis the most effective channel for suchdisposals.

Land and PlotsThere isn’t a better way to guarantee that aseller achieves best price for a residentialplot or development land than to offer it forsale by Auction. Builders are able to consultwith architects; planners etc., and be readyto bid in the Auction room. Sellers areregularly surprised by the high pricesachieved from land and plots sold in theAuction room.

Mixed Use PropertiesProperties that have mixed uses or a varietyof potential future uses are ideal for sale byAuction. Retail shops with a residentialhouse or flats above appeal to investors aswell as owner-occupiers.

Commercial InvestmentsWhether it is complete or part commercialbuilding floor plate, retail shops, offices orindustrial factories - Auction House can sellthem all. It doesn’t matter whether they arevacant or tenanted, with lease renewal soonneeded or with a long-term leasecommitment. We are constantly in touchwith a large number of investor clients whoconsider all types of commercialinvestment.


IndiaIndiaPrime PropertiesCertain properties in primelocations or having specialfeatures and a distinguishedowner history need to be sold ina competitive biddingenvironment. Auction canachieve unexpectedly high pricesfor such stock.

If it has a value, and is worthmarketing it is worth considering adisposal by Auction



Seek AdviceVisit our website to complete the Auction Enquiry form or make a phone call to

AHI. We will ask for general information about your property. If suitable, one of

our team members will arrange a time to visit. After inspecting they will advise

you the best way to sell your property. If you agree to sell by auction with AHI,

we will then provide you with a Guide Price and take you through the auction

process.

Instruction to SellWe will confirm our terms of appointment, get in contact with your solicitor (if

any), gather together the necessary paperwork, liaise with others to get

Searches, Planning Permissions, Specialists Reports, Home Information Packs,

Tenancy Agreements, Architectural Plans and get Special Conditions of Sale

prepared for your property.

Property details approvedWe get your approval to property details and marketing material that we have

prepared on your behalf. Once agreed we will put them on our website in a

suitable format for viewing and also will add it into our auction catalogue.

Effective Marketing CampaignAll Auction Lots are advertised in local/national newspapers and popular

property magazines. We will run a large-scale campaign on various property

search portals such as 99acres, Magic Bricks etc., two local FM channels

throughout the day and our in-house social marketing on the internet via

Facebook, twitter and our exclusive YouTube channel. Additionally all

properties are marketed through our very own interactive website

www.auctionhouseindia.com.

Viewings and open daysWe organize special Open Days at all properties that require access and have an

experienced, well briefed member of the Auction House team present to provide

guidance and ascertain interest from the many viewers. Open Days are well

advertised, highly effective and much valued by prospective Auction Buyers.

Sellers ten steps to auction success

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Catalogue DistributionYour property will be allocated a running order Lot number and after approval

will be added to our Auction Catalogue. These are sent to the numerous buyers

on our mailing list as well as those who have made specific enquiries for Lots in a

current Auction. The Catalogue is also uploaded to the website and made

accessible to every interested party. Special Conditions, Ancillary Documents and

Plans are made available through our website and from our Auctions Office.

Reserve PriceWe gauge interest and possible bid levels at Open Days and by discussion with

prospective buyers. We may have also received pre-auction offers and take these

into account. Occasionally a pre-auction offer may be so attractive and unlikely

to be surpassed in the Auction room that we recommend its acceptance,

conditional upon exchange at least five days prior to auction day. We agree a

reserve price with every seller approximately 48 hour prior to the Auction and

this remains confidential between you and Auction House.

Auction DayTime is allocated prior to starting of the Auction for prospective buyers to ask

any last minute questions. We circulate final amendments to the catalogue

details to those attending. Each Lot is described prior to being offered and

hopefully after competitive bidding will be sold on the fall of the hammer, with

contracts being effectively exchanged at that point. Sale documentation is

signed in the room and a 10% deposit paid.

CompletionYour solicitors will handle the process thereafter. We will supply them with a

Agreement of Sale and handover deposit monies after deducting the sale costs.

You will need to provide vacant possession on completion, unless the property

has been sold tenanted; make arrangement for key release and cancel your

service supplies, insurance etc.

Can Auction House India facilitate you further?A successful sale at Auction may prompt you to consider other disposals, or you

may seek valuation advice on other property assets that you have. On the other

hand you may wish to use the sale proceeds to purchase another property – the

Residential sales teams, professional valuers and others working with the various

offices of Auction House will be pleased to assist you. If you have been pleased

with the service and the result, you will hopefully be recommending it to others

and help us promote the benefits of the ‘Sale by Auction’ alternative.

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If you have a property suitable for Auction, please contact yourregional Auction House or Auction House India

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Who sells at auction? Auction House has now made it possiblefor the first time in India for auctions to be areal alternative platform for many sellersincluding home owners, private investors,property developers and banks.

When do you want to sell? Decide when you want to sell yourproperty. You can contact our customercare team or arrange to post your propertyonline on our websitewww.auctionhouseindia.com

What information do we need? Please complete the property detail formonline or provide us with the followingdetails by telephone : Address, Description,Photographs, Tenure and Tenancy (ifapplicable) details, Floor plan or site planand Other Information. Once we havereceived this information we will provideyou an estimated sale price of yourproperty at Auction. Together with aproposed reserve, we shall send you a copyof our Standard Listing Agreement settingout our terms and conditions. Once themaximum reserve price is agreed you willbe asked to sign and return our standardlisting agreement to confirm yourinstructions.

Proof of identity If you are not a registered seller or AHI hasnot sold for you before, we will requireproof of your identity and address beforewe can market and sell your property.

How much does it cost? We list properties at a very nominal cost inour catalogues. Unless you wish to take afull page listing with extra photographs, youwould have to pay a premium listing fee toAHI. Most lots will appear as a full, half orthird of a page within the catalogue as astandard setting.

CommissionIf your property is sold through auction, ourcommission is up to 3% of the sale priceplus Service Tax for a Sole Agency or 3.5%plus Service Tax for a Joint Agency. A JointAgency is usually advised where we feel it isnecessary to include a local estateagent/broker to handle local enquiries andconduct viewings. An AHI team memberwill confirm the auction entry fee (ifapplicable) and commission rate with you inwriting before accepting your instructions.

Sales particulars Once we have formally listed, the propertywill be inspected by one of our propertyexperts, measurements taken whereappropriate, and the property will bephotographed. Draft sales particulars willthen be forwarded to you and to yoursolicitor to amend, and send back to beapproved.

Legal documents At the same time you or your solicitors willbe instructed to prepare a legal packcontaining Home Information Packs,electricity and other utilities bill, paymentrecords, payment receipts of property/house tax, maintenance charges records (ifapplicable), society membership clearancecertificate, approvals from local authority,special conditions of sale, records of Sub-Registrar Office, title deeds, leaseagreements, registry copy of the propertyso that they are available to interestedbuyers either online or for viewing at ouroffice.

Guide to putting property into auctionIf you have a property to sell, please registeryour property details online on our websiteor contact one of AHI’s property experts.He/she will arrange a free, no obligationproperty valuation and advice whether wethink your property is suitable for sale byauction.

Selling Guidelines


Marketing your property Auction House India will start a blitzmarketing campaign approximately threeto four weeks (3-4 weeks) prior to theAuction Day.

• Catalogues We will print and distribute around 5000

catalogues for each auction. These aresent to prospective buyers includingprivate Investors, property companiesand developers.

• Email and SMS Marketing Our catalogue will be available online

and will send regular email and SMSalerts to thousands of potential privateinvestors and HNI’s. We have puttogether one of the largest database ofits kind in India.

• Advertising and PR We will advertise in the key property

publications, outdoor media hoardingsand signages. We will also placeadvertisements in local newspaperspromoting the Auction event. We oftenachieve editorial coverage in addition.

• Radio Ads We will run a 21-30 day campaign on

two local FM radio channels. The ad will

run nine times a day announcing ourProperty Auction Day event.

• Network Marketing We will also be inviting buyers through

our growing network of brokers andagents. We have hundreds of associatesand partner brokers in all parts of yourcity. They help us in generatingmaximum interest from local buyers inthe area where the property is located.

House Viewing DayPotential buyers may want to view andsurvey your property during the marketingperiod. We can arrange viewings as peryour preferred timings for buyers. In mostcases vacant properties are open at pre-arranged times for viewing. Details will beprinted in the catalogue and publishedonline.

Legal documentationIn conjunction with your solicitors we willkeep you informed about prospectivebuyers and fully updated as to the levels ofinterest shown. We have developed aninnovative and user- friendly onlinedocument system in order to speed upauction day.

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Saturday 30th July 2016

12.00 noon

The Ballroom, Crowne Plaza, Site No.2 Sector 29

(Opposite Signature Tower) New Delhi Ncr,

Gurgaon, India 122001

Friday 29th July 2016

11.00am

Oval Room at The Mansion

Hyatt Regency Delhi Bhikaiji

Cama Place, Ring Road, New Delhi, India 110066

India

Saturday 30th July 2016

12.00 noon

The Ballroom, Crowne Plaza, Site No.2 Sector 29

(Opposite Signature Tower) New Delhi Ncr,

Gurgaon, India 122001

Friday 29th July 2016

11.00am

Oval Room at The Mansion

Hyatt Regency Delhi Bhikaiji

Cama Place, Ring Road, New Delhi, India 110066

IIndia

Saturday 30th July 201612.00 noon

The Ballroom, Crowne Plaza, Site No.2 Sector 29 (Opposite Signature Tower) New Delhi Ncr,Gurgaon, India 122001

Friday 29th July 201611.00am

Oval Room at The Mansion Hyatt Regency Delhi BhikaijiCama Place, Ring Road, New Delhi, India 110066

AWARDSIN THE LAST 5 YEARSACROSS AUCTION HOUSE GROUP

MULTI AWARDWINNERS

Delhi (NCR)Delhi (NCR)IndiaIndia

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Buying at Auction

There are many reasons to choose the auction route to buy yournext property. The list below will give you an understanding as towhy Auction is the better way to buy a property.

Possibility of negotiationAuctions in fact do offer the possibility ofnegotiations. Before the property goes upfor public auction during our well-attendedevent, we give you a chance to place youroffer and counter-offers under auction rulesto the seller of your property of interest.

Assurance of SuccessIf your bid wins when the hammer comesdown then legally the property is sold toyou with an immediate exchange ofcontracts. There will be no chance ofsomeone stepping in and taking thatproperty back from you. Even the sellercan’t change his or her mind and re-negotiate your final purchase price after thefall of the hammer. Rest assured auction is astraight forward process and you will notbe subjected to the hassles, worry, doubtand frequently extended completion timethat one experiences whilst trying andoften failing to purchase traditionalproperty transaction.

Fast, Secure and Easy Auction is a fast, secure and easy way tobuy a property. From the beginning thetimeframe is fixed. The auction date and thecompletion period (up to 30 days) areknown from the start. So you are alwaysaware as to when you can view theproperty of your interest, obtain legaladvice, conduct your due diligence andarrange appropriate financing for yourpurchase.

Chance of a Great Deal!Auction Lots regularly offer buyers achance to grab a great deal. There areplenty of opportunities for developmentand value enhancement. Buyers can look to

purchase properties that require only smallrepairs to add value and trade the same fora handsome return in a short period.

No Hidden ConditionsAuction House in coordination with seller orsellers' solicitors (if any) makes available allappropriate and significant documentationincluding registry papers, titles, leaseagreements, relevant authority letters, floorplans, utility dues and property tax dues.We are always happy to provide anexplanation and give general guidance too,should this be required. Buyers are stronglyadvised and recommended to conduct duediligence of the properties eitherthemselves or through their solicitor andother professional advisers.

Equal OpportunityEveryone has a fair opportunity at auction;it is not a first come first served system. Allproperties in auctions are sold on thehammer falling, though you may choose tomake a pre-auction offer if you are veryinterested in a particular property. In orderto succeed, you should bid high to a levelthat might not be reached by competitivebidding in the Room.

Competitive BiddingBuyers who bid aggressively at the auctionwill often succeed in purchasing theproperty at below their maximum. Byfollowing this practice, they have a chanceto purchase the property at a lower pricethan a traditional private property deal.Also, buyers will be reassured that otherbidders also share the same belief of aproperty's value as they do when bidding isgoing on. It is a good idea to have astrategy when bidding.


IndiaIndiaImmediate Rental IncomeIf you buy a rented property you will startreceiving rental income from the day all thelegal work is completed and the property istransferred into your name. Your‘investment’ starts delivering you incomefrom the minute you take possession. Thelegal benefits of the Rent/Lease Agreementwill pass over to you along with theresponsibilities that it contains.

Right Property and Right PurposeYou will be interested in a specific auctionproperty because it is right for you and youwill want it for a specific purpose. You maychoose it for self-use or for investmentpurposes. You will already know why you

want it - your purchase will be part of abigger plan; either financial, family orbusiness related. Auction often offers theopportunity that you have been waiting forand the urgency it brings could persuadeyou to commit to that plan.

Pre-approved financeNowadays there are banks and otherprivate lenders that will pre-approve yourloan to purchase a property at auction. Weat AHI can introduce you to our associatefinance companies. They can pre-qualifyyou (only if you are eligible) with a loandisbursement offer to support your bid atthe auction.

Buying at auction is an ideal way of purchasing a property,which has the potential to be re-sold after modernisation for agood profit


Know what You WantAuction isn’t right for everyone. Make sure it is right for you before you start. The

first and the most important step is to know what you want and know why you

want it. If you don’t you shouldn’t be bidding in the room. If it is a re-development

project then make sure that it’s not beyond you; if it’s an investment be clear

about the return you want.

Keep searchingSubscribe to the Auction House mailing list and read the local press on a regular

basis. Log onto Auction website including our own www.auctionhouseindia.com

and subscribe to receive our updates and email newsletters. You will want to hear

about properties that might suit your requirements early on in their marketing

period, not just before the auction day, so keep searching until you see

something that suits.

Get a cataloguePick up a catalogue as soon as possible. Prior to that you will rely on the property

details on our website which can be viewed and downloaded free of charge. The

catalogue will contain finalised details of the Lot that you are interested in and

may include a floor plan, room measurements and Guide Price.

Open day viewingTry to view the property on its first Open Day and consider taking along with you

someone whose opinion you value, because a second opinion that you trust will

give you comfort and reassurance. Talk to the Auction House representatives,

they will be pleased to assist you, answer general questions and could be a good

sounding board for your ideas. Go back again during the second Open Day if

you can and spend some time thinking about the property’s future potential.

Surveys and ReportsProperties sold at Auction may not be in prime condition, so you might wish to

have a survey carried out and maybe also specialist reports. You might also need

quotes from a builder or specific tradesmen for works that you wish to have

carried out. Make sure that all reports, recommendations and plans are received

well before the sale date. Discuss with your Surveyor and others what the

property is worth in its current state and what the value will be after

improvements.

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Legal ProcessIt is advisable to involve your solicitor in this process at the earliest possible point.

They will inspect the legal packs and other information, such as titles, registry,

and clearance certificates from authority, house/property tax payment - these

can be accessed online from our website (if available) or can be viewed from our

office copy. Their advice and expertise could prove invaluable before committing

to bid. Your personal due diligence of the property of your interest is extremely

crucial. Remember once the hammer comes down it's too late to change your

mind.

Organise FinanceYou will need to have 10% of the purchase price available on Auction Day

(subject to a minimum on low priced properties) and the remainder of the

purchase price and fees in readiness for completion. Arrange these with your

Financial Adviser, Bank or another preferred route – you can also investigate

short term financing and other draw down options. If successful you will be able

to pay your deposit by Banker’s draft or personal cheque. Speak to your Insurers

too, as you will be responsible for insurance from exchange.

Determine your bid levelDraw your budget, make sure that you include all costs that will arise if you are

successful - these include legal and professional fees, stamp duty, the cost of

improvement or conversion work etc.,and any related fees, (and in some cases

VAT). In most cases there will be an administration fee to pay to the Auctioneer

for their services. Decide on your maximum bid levels before entering the

Auction Room - and take the view of your advisors too.

Auction day tipsAlways make a late check to ensure the property that interests you has not been

withdrawn. Arrive in good time, space is often limited. Last minute changes will

be handed out on an ‘addendum’. If you have queries, ask the Auctioneer or

other staff prior to the start time, they are approachable and knowledgeable. Bid

clearly by holding up your hand or catalogue – do not worry about bidding

accidentally. Auction House Auctioneers are experienced and will check that you

are genuine.

On the fall of the hammerThe fall of the hammer signifies the binding sale of that particular property. The

purchaser is required to pay a deposit and sign a Memorandum of Sale. Make

sure you have ID’s (i.e. driving license, Passport and Utility bill) and the means to

pay your deposit. On occasions properties do not reach their Reserve Price. If

you are bidding prior to this and the property is unsold speak to the member of

the Auction Team afterwards to register your interest and advice them of your

maximum bid. There is a possibility that a sale can be quickly effected by

subsequent negotiations under Auction Rules.

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Find out information on all properties for sale,along with dates of future auctions, it can beobtained as follows:

On-line catalogueOnline catalogues are generally available onour website about two to three weeks prior toan auction sale. By registering online youwould also be able to receive cataloguepreviews and guide prices.

Printed catalogueYou can obtain a printed catalogue by callingour customer care department or byrequesting a printed copy on-line atwww.auctionhouseindia.com

Identify lots Look through the catalogue and identifythose lots or properties that may be ofinterest. A list of properties can be found atthe front of the catalogue. Please remembersome properties are offered as vacant, someare tenanted and some may be part vacant.Whatever the case may be, the lots are sold‘As is where is’ basis.

Check guide prices Guide prices are shown in the auctioncatalogue next to each property. Guide pricesare only an indication of the sellers’ minimumexpectation of the price at which he/she iswilling to sell the property. The guide price isnot the price at which the property would sellduring the auction and it’s not unusual for thefinal sale price to be well ahead of the guide.These prices are subject to change. Updatedguide prices can be obtained online from ourwebsite.

Changes to the information (Addendum)Occasionally changes are made to theproperty information published in thecatalogue. These changes can be obtained bycalling our customer care number or from ourwebsite. Before you bid it is essential that you

check for any changes that may haveoccurred, even up to the day of the auctionand you should check the Addendum sheetprovided in the Auction Room which will haveall corrections and revisions listed.

View the property Group viewing information of each property isgenerally provided on our website. Please callus to make the other arrangements to viewthe property in cases where the information isnot provided. For group viewings, which areat pre-arranged times, there is no need tomake an appointment. Property viewings willbe organised at fixed times. Where propertiesare tenanted, interested parties are normallyadvised to contact us to arrange a convenienttime for viewing.

Register your interest If you find a property which is of interest,please register yourself as a Buyer onwww.auctionhouseindia.com or leave yourcontact details on the Auction Enquiry Formon our website, then one of our experts willcall you back shortly. Alternatively call ourcustomer care number to find out more aboutthe property of interest. Please check on ourwebsite regularly up until the Auction Day tobe alerted to any changed information or itswithdrawal or sale prior to auction.

Legal Advice and Due DiligenceIt is strongly recommended that you obtainindependent legal advice before bidding. Youare also advised to carry out proper duediligence of the property you want to bid foras the properties are sold on the auction dayon ‘As is where is basis’. The seller or hissolicitor prepare legal packs containing(where applicable) Home Information Packs,electricity and other utilities bill paymentrecords, payment receipts of property/housetax, maintenance charges records (ifapplicable), society membership clearancecertificate, approvals from local authority,

Buying Guidelines


special conditions of sale, records of Sub-Registrar Office, title deeds, lease agreements,registry copy of the property. These may beavailable to download online from our website(on sellers’ approval). Alternatively, AHI canmake the Legal Pack available from the selleror his/her solicitor for your perusal. They willhelp you make an informed decision aboutthe property. If you need further legalinformation please contact Auction HouseIndia or seller’s solicitor whose details will beon the website and printed within thecatalogue. If you wish to peruse the legalpacks in our offices then this can be arrangedtoo. Legal packs will usually be available forlast minute inspection in the auction room.Remember that you buy subject to alldocumentation and terms of contractwhether or not you have read them.

Arrange financeIf you need to arrange a mortgage orhome/property loan, it is advised that youobtain a pre-approval from your bank orfinancial institution in principle before theauction day. You may also choose to get aquote from Auction House partner financialbrokers or institutions. Most banks andfinancial institutions will instruct a third partyvaluer to prepare a valuation report beforemaking a loan offer so you will need to makeyour home/property loan application as earlyas possible. You will usually need to completeyour purchase up to 30 working days afterthe day of the auction. You should discuss thiswith your lenders to make sure that this willnot be a problem.

Making an offer prior to the auction Auction House India lets you make an offer(which should be in writing, by telephone orby email) for a property at any time up to the

day of the auction. You will need to be in a

position to proceed if the seller accepts your

offer, as you will have to sign the Agreement

and pay your deposit immediately in

accordance with Auction rules.

• Proxy/Telephone/Internet Bidding If you are unable to attend the auction, you

can always bid by telephone (we will

telephone you when the lot is being

auctioned) by proxy in writing (you specify

your maximum bid and the auctioneer bids

on your behalf) or on-line. In each of the

above cases you would need to complete a

registration form and supply cheque/

demand draft or wire transfer of the

deposit prior to the date of the auction.

Bidder registration form is printed in the

catalogue or can be downloaded from

www.auctionhouseindia.com/bidderregistration

• Make sure the property is still available We recommend potential buyers either to

look on our website or call us on the day

before the auction to make sure that the

properties in which they are interested are

still available.

Understand all terms and conditions Buying property at auction is a little different

to buying property by private treaty. We

strongly recommend potential buyers to

verify that they have read and understood all

the sellers’ legal documents and the Auction

Terms & Conditions. More information on

Common Auction Conditions is printed in the

catalogue or available to download from our

website.

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Addendum - An amendment or additions tothe conditions where contained in asupplement to the catalogue. This may be awritten notice inserted into the cataloguehanded out at the auction and / orannounced from the stage.

Auction - A public sale in which property oritems of merchandise are sold to the highestbidder.

Auctioneer - The person who conducts anauction. The auctioneer introduces each lotoffered for sale, acknowledges bids, andannounces whether lots are sold or unsoldand their final bid prices.

Bid - This is the offer to buy property at aspecific price.

Catalogue - The catalogue gives a descriptionof the property, detail on how to view eachproperty and the General Conditions of sale.The catalogue description forms part of thecontract.

Completion - The date by which the salemust be finalized. Penalties will be applied ifthe sale is completed late which can includelosing your deposit.

Deposit - The sum paid on exchange ofcontracts to secure the purchase, normally10% of the purchase price but sometimessubject to a minimum figure.

Exchanging contracts - If you are thesuccessful bidder at the auction sale, the saleis binding on the fall of the hammer and youwill be asked to sign and exchange contractsin the auction room. The auctioneer has theauthority to sign the contract on behalf ofboth buyer and seller.

Guide price - This gives an indication of theprice that the property is expected to sell forand what the seller is hoping to achieve.

Legal pack - There will be a Legal Packcontaining copies of all the legal papers. This

will include (where applicable) Home

Information Packs, electricity and other

utilities bill payment records, payment receipts

of property/house tax, maintenance charges

records, Special conditions of sale, records of

Sub-Registrar Office, Title Deeds, Lease

Agreements, Registry Copy of the Property.

Lot - Each separate property being auctioned.

Proxy bid - This auctioneer can undertake

bidding on behalf of buyers who are unable to

attend the auction. The buyer must contact

the Auction House in advance to obtain a

proxy bidding form. This must then be

returned to Auction House with a payment of

the required 10% deposit within the time

specified by the auctioneers. The buyer writes

the maximum amount they will bid to on the

form and the auctioneers will bid on behalf of

the buyer, up to but not beyond the stated

price.

Reserve - A reserve price is the lowest price

the seller will accept. This is Confidential and

not disclosed to any interested parties.

Telephone bid - A telephone bid made

though a member of the Auction House team.

The staff member telephones the client from

the auction room and relays the clients’ bids

to the auctioneers during the bidding on

those lots. An Authority to Bid by Telephone

form needs to be completed and signed at

least 24 hours prior to the auction and deliver

to Auction House along with payment of the

required 10% deposit.

Tenancies - Contracts to occupy or lease the

property subject to rent. A lot may be sold

subject to existing tenancy agreements.

Withdrawal - If there is a failure to reach the

reserve price or there is insufficient bidding

the auctioneer will withdraw the property

unsold from the auction.

Glossary of auction terms


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National and local.Knowledgeable and

Professional



The fall of the HammerOn the fall of the Auctioneer’s hammer, abinding Contract is affected. The purchasermay not renegotiate and cannot changeany of the terms stipulated. The successfulbidder is required to provide the name,address and telephone number of thebuyer and the buyer’s solicitors (ifavailable). The successful bidder will also beasked to provide a cheque/ demanddraft/pay order or wire transfer (RTGS) for10% of the purchase price. Identification ofthe bidder/buyer is always verified at thisstage. Clearance of all deposit cheques isarranged immediately after the auction.

Exchange of ContractsThe Agreement to Sale is made up in theroom and given to the buyer to sign. Theexchange is overseen by our solicitor. Wewill forward the purchaser’s signedAgreement to Sale to your solicitor.Completion will usually take place 30working days later. The deposit funds arethen paid to the sellers’ solicitor (if any) lessour fees.

What happens if the property does notsell on the day? If your property fails to reach its reserve inthe room, someone may still wish to buy it.You may decide to accept an offer belowreserved price after the auction and adviseus accordingly. The property may even besold in the days and weeks after the sale aswe continue to market the property.

Market Leaders Auction House India is the first and largestof its kind in India. Our team has depth ofexperience and the reputation necessary tohold well attended auction sales and ensurea successful and profitable outcome foryour property disposals.

Impartial Advice When advising you, we always considerwhether a property is more suitable for saleby auction or traditional private sale. AHIoffers both methods. Our auction andprivate sale departments effectively workas one team ensuring that our advice isimpartial and carefully considered.

Unrivalled Access to Property Investors For every property offered in our auctionwe will ensure unrivalled exposure to themarket with thousands of cataloguesdistributed for each auction, and extensiveadvertising in the national and local pressand on radio channels.

Quick Results The entire process, from listing to exchangeof contracts, can be achieved within as littleas six to eight weeks. Our experiencedteam offers a streamlined service aimed atsecuring the best price for your propertywith the least amount of stress.

You can expect the atmosphere of theauction room to be extremely exciting andcompetitive.

By auction, AHI offers sellers:

• Guaranteed unrivalled exposure to themarket

• Thousands of catalogues mailed out foreach auction.

• Email & SMS marketing to an extensivebuyer database.

• Advertising in national, trade and localpress for auction property.

• PR, Radio ads and hoardings

• The knowledge that, with a realisticreserve price, the property will achievethe best possible market value.

• Likelihood of a sale on a given day, butsometimes prior or post auctions.

Why Auction House India?


The auction process is speedy, bidding istransparent and it offers a great deal morecertainly than other method of sale. It haslong been the preferred buying route formany property investors and the benefit itoffers are being understood by more andmore people.

The buy-to-let revolution made propertyinvestments attractive to newcomers. Nolonger is it the exclusive stronghold ofprofessional players with high net worthand good banking connections. Nowadaysproperty investments can be seen as ahedge against inflation, the way to save anda method of building a capital fund to helptide individuals through their retirementyears. Experts agree that over the longterm, investment in property makes senseand it is regularly referred to as a privateperson’s best pension route.

An auction is an efficient and a relativelycost effective way of selling property. If theproperty is extensively marketed,advertised and promoted, it will most likelyresult in achieving maximum price. Toincrease the effectiveness of the marketing,considerable thought must be given to theguide price, which needs to be tailored to

generate competitive bidding in the auctionroom, thus ensuring that the best price isbeing achieved.

Properties sold privately in a traditionalmanner, present uncertainties such as saleprice and timing of exchange andcompletion.

On the other hand selling by auction, givesyou a high degree of certainty that a salewill be achieved on a given day and,significantly, on the fall of the hammer, animmediate binding contract is formed.

No further negotiations are permittedduring the subsequent sale process. Fromyou listing the property with Auction HouseIndia to exchange of contracts is achievedwithin six-eight weeks.

For sellers having multiple properties to sell,auctions provide a highly efficient methodof sale; it allows a complete or phaseddisposal programme selling in individualproperties/lots thus maximizing yourreturns. For those selling on behalf ofsomeone else (individual/trust/corporate),there is the added advantage of the salebeing entirely open and transparent. Mostlyall properties whether it is a residential plot,flat, building, house or a commercial plot,retail shop or an entire Hotel are suitable forauction provided that a realistic reserveprice is agreed.

The future favour’s Auction

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IndiaIndiaproperty auction experts

Please visit our website for more information

www.auctionhouseindia.com
