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The Cyprus Common Auction
Conditions
Introduction
The Cyprus Common Auction Conditions are based upon the Common Auction
Conditions (Edition2) produced by the Royal Institution of Chartered
Surveyors (RICS) and adapted to comply with Cyprus law and practice
They have three main sections:
1. Glossary
This gives special meanings to some words
used in the rest of the conditions
2. The conduct of the auction
These conditions regulate the conduct of the
auction. If you read our catalogue or attend
the auction you do so on the basis that you
accept them
3. Conditions of sale
If you buy a lot you will sign a preliminary contract of sale or a
preliminary sale agreement under which you agree to be bound by the
conditions of sale that apply to that lot. These conditions are:
-
General Conditions that apply to all lots
-
Any extra General Conditions in the catalogue
or an addendum
-
Special Conditions that only apply to the lot
you are buying (and which may vary the
General Conditions)
The conditions are legally binding.
Important notice
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 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
The conditions assume that the buyer has
acted like a prudent buyer.
If you choose to buy a lot without taking these
normal precautions you do so at your own risk.
Glossary
In the
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
And where the
following words appear in blue they have the specified meanings:
Addendum
An amendment or addition to the conditions whether contained in a
supplement to the catalogue, a written notice from the auctioneers or an
oral announcement at the auction
Approved bank
A Cyprus clearing bank
Auction
The auction advertised in the catalogue
Auctioneers
The auctioneers at the auction
Business day
Any day except (a) a Saturday or a Sunday (b) a bank holiday in Cyprus
(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 all
obligations can be enforced against them jointly or against each of them
separately
Catalogue
The catalogue to which the conditions refer including any supplement to
it
Completion to buy
The date when the preliminary contract of sale or preliminary sales
agreement is signed, normally the same date as the auction.
Completion to Take Possession
The date the full balance of the purchase Price is paid, normally within
60 days of the auction date.
Completion to Transfer
The date the Title Deeds are transferred to the buyer.
-
the date the title deeds are
transferred, in cases where the title deeds are available
-
the date the final contract is
signed in cases where no separate title is available
Conditions
This glossary, the conditions for the conduct of the auction, the
general conditions, any extra conditions and the special conditions.
Preliminary contract of sale
The contract by which the seller agrees to sell and the buyer agrees to
buy the lot to be used where the seller is named on the individual Title
Deed.
Preliminary Sale Agreement
Preliminary sale agreement by which the original buyer who sells agrees
to sell and the new buyer agrees to buy the lot, to be used where the
seller is named on the “contract of sale” as the buyer and he proves
that he is the buyer and he has the right to sell
Contract date
The date of the auction or, if the lot is not sold at the auction,
a) the date the preliminary
contract of sale or the preliminary sale agreement (in cases where
separate title deed is not ready yet) is signed by both the seller and
buyer or
b) if contracts are signed, the
date of signing.
Documents
Documents of title deeds (including, if title deed is held by the seller
or the developer and is registered, the entries at the District Lands’
Office) and other documents listed or referred to in the special
conditions relating to the lot
Extra conditions
Any additions to or variations of the conditions that are of general
application to all lots
Interest rate
If not specified in the special conditions, 2% above the base rate from
time to time of The Bank of Cyprus
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
Particulars
The section of the catalogue that contains descriptions of each lot.
Price
The price that the buyer agrees to pay for the lot
Seller
The person selling the lot
VAT
Value Added Tax or other tax of a similar nature
We (and us
and our)
The auctioneers
You (and
your)
Someone who has a copy of the catalogue or who attends or bids at the
auction, whether or not a buyer
The conduct of the auction
The catalogue
is issued only on the basis that you accept these conditions relating to
the conduct of the auction. They override all other conditions and can
only be varied if we agree.
Our role
As registered & licensed 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 preliminary contract of sale (provided we have power of
attorney)
-
sign each preliminary sale agreement (provided we have power of
attorney)
-
treat a contract as repudiated if the buyer fails to sign a sale
memorandum or pay a deposit as required by the conditions.
Our decision on the conduct of the auction is final.
We may cancel the auction, withdraw lots from sale, or alter the order
in which lots are offered for sale.
Bidding and reserve prices
We may refuse to accept a bid. We do not have to explain why.
If there is a dispute over bidding we are entitled to resolve it, and
our decision is final.
Unless stated otherwise each lot is subject to a reserve price. If no
bid equals or exceeds that reserve price the lot will be withdrawn from
the auction. The seller may bid (or ask us or another agent to bid on
the seller's behalf) up to the reserve price but may not make a bid
equal to or exceeding the reserve price.
Where a guide price is given that price is not to be taken as an
indication of the value of the lot or of the reserve price.
The particulars and other information
We have taken reasonable care to prepare
particulars that correctly describe each lot.
However the particulars are based on information supplied by or on
behalf of the seller and we are not responsible for errors.
The particulars are for your information but you must not rely on them.
They do not form part of any contract between the seller and the buyer.
If we provide any information or a copy of any document we do so only on
the basis that we are not responsible for its accuracy
The contract
A successful
bid is one we accept as such.
If you make a
successful bid for a lot you are obliged to buy that lot on the terms of
the preliminary contract of sale . The price will be the amount you bid
plus VAT (if applicable). You must before leaving the auction:
-
provide all information we reasonably
need from you to enable us to complete the preliminary contract of sale
or preliminary sale agreement (including proof of your identity)
-
sign the completed preliminary contract
of sale or preliminary sale agreement and
-
pay the deposit
Deposits must
be paid by cheque or by bankers' draft drawn in our favour on a Cyprus
clearing bank.
We may retain
the preliminary contact of sale or preliminary sale agreement signed by
or on behalf of the seller until we receive the deposit in cleared
funds.
If you make a
successful bid for a lot:
-
You are personally liable to buy it even
if you are acting as an agent. It is your responsibility to obtain an
indemnity from the person for whom you are the agent
-
Where the buyer is a company you warrant
that the buyer is properly constituted and able to buy the lot
-
If the buyer does not comply with its
obligations under the contract you are personally liable to buy the lot
and must indemnify the seller in respect of any loss the seller incurs
as a result of the buyer's default.
General Conditions
The general
conditions apply except to the extent that they are varied by the extra
conditions, the special conditions or by an addendum.
1 The lot
1.1 The lot,
including any rights granted and reserved, is described in the special
conditions
1.2 The lot is sold subject to any
tenancies disclosed by the special conditions, but otherwise with vacant
possession on completion.
1.3 The lot is sold subject to all
matters contained or referred to in the documents and 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 the documents.
1.4 The buyer buys with full
knowledge of
a) the documents whether or not
the buyer has read them
b) the physical condition of the
lot and what could reasonably be discovered on inspection of it, whether
or not the buyer has inspected it.
1.5 The buyer is not relying on
the information contained in the particulars or in any replies to
preliminary enquiries but on the buyers own verification of that
information. If any information is not correct any liability of the
seller and any remedy of the buyer are excluded to the extent permitted
by statute.
2 Deposit
2.1 The amount of the deposit is
the greater of
a) £2,000 (or the total Price if
less than £2,000) exclusive of VAT
b) 10% of the PRICE exclusive of
VAT.
c) No deposits are refundable if
purchaser fails to proceed
2.2 The deposit must be paid to the auctioneers by cheque or banker’s
draft drawn on an approved bank
2.3 Where the auctioneers hold the deposit as stakeholders they are
authorised to release it and any interest on it to the seller on
completion or, if completion does not take place to the person entitled
to it under the conditions.
2.4 If for any reason the deposit is not received by the auctioneers in
cleared funds within ten business days of the contract date the seller
is entitled to treat the contract as at an end and bring a claim against
the buyer for breach of contract.
2.5 Interest earned on the deposit belongs to the seller unless the
conditions provide otherwise.
3 Title Deed & Ownership
3.1 The seller must provide, a
copy of The Title Deed or in the case the seller is not the registered
owner, provide a copy of the following;
a) The Sales Contract
b) Architects Plans
c) Planning permission
d) Building permission
e) Letter from the developer
stating that they have no objection to sign final contracts
f) Certificate of approval (if
available)
g) Copy of water bill
h) Copy of electricity bill
3.2 There shall be two types of
sale
3.2.1 The sale of a property for
which a separate individual Title Deed exists. The buyer and the seller
will sign a final and binding contract (The contract of sale) which will
commit both parties on;
a) the property to be sold (the
lot)
b) the seller
c) the buyer
d) the sale price
e) the terms of payment
f) the delivery time
g) transfer date
3.2.2 The sale of a property for
which no individual separate Title Deed exists and the property forms
part of a development to be built, completed and sub-dived. The buyer
and the seller will commit on a preliminary basis by both parties
signing a preliminary sale agreement which shall cover the following;
a) The property to be sold (the
lot)
b) The sale price
c) Time required for the existing
contract cancellation and the subsequent new contract to be signed
d) The delivery date
4 Preliminary sale agreement terms
4.1 The Special Terms in the
contract will state
4.1.1 The Contract date and
developer under which they have legal right of possession and the right
to dispose of such a possession through a new Contract of Sale with the
registered owners
4.1.2 The cost of such a procedure
will be paid by the vendor
4.1.3 The vendors undertake to
have their said Contract of Sale cancelled and a new contract to be
signed with the purchaser.
4.1.4 Any taxes as from the date
of delivery will be the sole responsibility of the purchasers.
4.1.5 In the event that the
purchaser fails to meet the obligations under the contract on the agreed
time and provided the vendor is ready to execute theirs, then the
deposit paid in virtue of this agreement will be kept by the vendor less
reasonable expenses to the auctioneers as non-refundable and this
agreement will be considered null and void
4.1.6 In the event that the
contract between the developer and the vendor can not be signed by the
agreed time the vendor will refund the deposit to the purchaser in case
he doesn’t refund within 30 days from request he pays 3% interest from
the date of request until date of payment
4.1.7 The vendor will provide the
purchasers solicitor with copies of the tax clearance certificates for
any capital gains tax liability, supply electricity and water bills to
enable the purchaser to connect these utilities in the purchaser’s name,
as from the date of delivery, and withdraw the contact of sale from the
land registry in order to enable the new contract to be lodge
5 Preliminary contract of sale terms
5.1 The Special Terms in the
contract will state
5.1.1 The property is free of any
impediments and the agreement may be lodge with the Land Registry Office
5.1.2 Any taxes from the date of
delivery will be the responsibility of the purchaser
5.1.3 The vendor will provide the
purchasers solicitor with all the tax clearance certificates showing
that that there is no tax liability at the stage of signing the
contract. In this respect the purchasers solicitor will provide the
vendors solicitor with a copy of the stamped agreement
5.1.4 Any dispute between the
parties of this agreement shall be resolved under The Laws of Cyprus and
the relevant District Court will have exclusive jurisdiction.
5.1.5 The purchaser will have the
right to sell the property to any third party and the vendor will
consent to a new agreement to be signed between him and the new buyers,
provided that the new contract will be under the same Terms and
conditions.
6 Completion
6.1 Completion stages will take
place as follows
6.1.1 Completion to buy - Occurs
when final contracts are signed
6.1.2 Completion to take
possession - Occurs when the full purchase price is paid, usually 60
days after
6.1.3 Completion of transfer -
Occurs when the Title Deeds are transferred into the name of the buyer,
provided that the buyer obtains the permits from the Cypriot authorities
(if required), at a time in the future determined by the availability of
the Title Deeds
7 VAT
7.1 Where the conditions require
money to be paid the payer must also pay any VAT that is chargeable on
that money, but only if given a valid VAT invoice.
VARIATIONS TO COMMON AUCTION CONDITIONS
Deposit
Clause 2 of the general conditions of Sale is varied to the extent that
the deposit will be held by the auctioneers as agents for the seller
except if the Special conditions of Sale stipulate otherwise.
Without
prejudice to General Condition 2.4, in the event that any cheque given
as deposit is dishonoured upon presentation or the buyer fails to pay
the deposit on the date hereof then without notice the seller shall if
he so chooses have the right to deem the conduct of such buyer as a
repudiation of the agreement between the buyer and the seller and may
resell without notice and/or take steps which may be available to it as
a consequence of the buyers breach but without prejudice to any claims
it may have against the buyer for breach of the agreement or otherwise.
Use
Any description of the lot which includes reference to its use does not
imply or warrant that it may be legally used for that purpose.
Money Laundering Regulations
If the buyer is unable to provide
adequate means of identification in the auction room either for himself
or for the contractual buyer (if this is different) the auctioneer may
retain the sale memorandum signed by or on behalf of the seller until
such identification is produced and in the absence of its production may
(as agent for the seller) treat this as the buyers’ repudiation of the
contract and re-offer the lot for sale.
Liability of the auctioneers
The auctioneers shall be under no financial liability in respect of any
matters arising out of the auction or the particulars for any lot or any
of the conditions relating to any lot. No claims shall be made against
the auctioneers by the buyer in respect of any loss or damage or claim
actually or allegedly suffered by or made against the buyer by reason of
the buyer entering into the contract.
Signing Auction Contract
By participating in the auction the successful bidder undertakes to sign
the auction contract of sale or preliminary contract of sale immediately
following the fall of the hammer on his/her bid, and in any event the
buyer gives to the auctioneer the irrevocable and binding authority to
sign the auction contract on his/her behalf.
Administration Fee
On completion of the sale there is an administration cost of £250
payable by the buyer (including VAT)
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