Terms and Conditions

General Terms & Conditions of Auction Sale – For Auctions held in SCOTLAND

Please refer to ‘Glossary of Terms’ for definition on specific matters and terms used within in any agreements and for clarity of the context used.

These General Conditions of Sale govern each lot sold in this auction, subject to any variations or additions outlined in the Special Conditions of Sale applicable to the relevant lot. The following forms general property auction conduct.

In addition, by submission of online bid on First Choice Property & Auction bidding platform, you will authorise First Choice Property & Auctions to collect payments required to secure minimum reservation deposit and buyers fees, where invoice will be provided on acceptance of the bid/or offer by the Seller.

Your full payment as required will be treated as acceptance of auction contract terms and will be issued to Seller’s Solicitor to complete the purchase via Buyer’s solicitor as acceptance of unconditional sales.

Once payment is made it is therefore non-refundable as all negotiations will cease to exist immediately i.e. binding contract is created.

There is no VAT on deposit amount, only Buyer’s premium fee attracts VAT on payment.

Following Terms apply as per below.

1. Seller’s Rights

The person representing seller (‘Seller’) reserves the following rights:

• (a) To withdraw any lot from the auction at their discretion.
• (b) To sell any lot or part thereof privately before the auction, without disclosing the reserve price or providing a reason.
• (c) To consolidate two or more lots into one.
• (d) To reserve a right to bid on any lot personally or through the auctioneer up to the reserve price only.

In the event of any conflict, Special Conditions of Sale shall take precedence over these General Conditions.

2. Reserve Price

Unless stated otherwise, an undisclosed reserve price applies to each lot.

3. Bidding Procedures

The auctioneer reserves the right to manage the bidding process, including the right to refuse any bid at their sole discretion. All bidders must register their details, provide identification, and obtain a bidder ‘log-in’ before participating in the auction.

As we provide bidding online service: you must register to bid prior to auction by providing relevant ID documents and deposit which will be placed in hold till auction takes place and hammer falls and is kept from successful bidder only as a part of sales transaction. We follow AML rules to satisfy current legislation.

In cases of competing bids, each bid must exceed the previous bid by an increment determined by the auctioneer. If no bids exceed the reserve price, the auctioneer may, at their discretion, resubmit the lot or offer it in smaller lots or combined groups. The highest bid above the reserve price, or the bid matching the reserve price, shall secure the lot for the bidder.

We hold deposit on registration of new bidders being £3000 minimum or 5% of guidance price. This amount will not be collected, but only frozen by ‘pre-authorisation’ by card provider/or merchant on account until ‘Auction’ finishes. Only successful bidders deposit will be kept and processed.

Upon the auctioneer’s final bid fall, the successful bidder must immediately pay any remaining deposit (if higher than original deposit) at the designated by Auctioneer Form of Payment to meet 5% (unless specifically 10% requested by the Seller as per Special Conditions of Sale or in Description of the Lot) minimum or £3,000 if lower. If the bidder wishes to continue bidding on additional lots, they may defer payment of the deposit, subject to the auctioneer’s approval, until they have completed their bids.

The successful bidder must promptly pay reservation fees due to allow they sign off the Minute of Preference and Enactment (effective from the auction date) to formally bind themselves to the agreed price. If acting as an agent, the bidder must specify the principal’s details at the time of signing/or payment of fees. If the bidder fails to provide those details, the auctioneer may re-offer the lot or authorize a representative to sign on behalf of the bidder and principal.

Provisional Bids: Bids below the reserve price may be held provisionally for a period of seven working days following the auction date. The auctioneer will confirm the acceptance or rejection of a provisional bid within this timeframe. If no response is received within the seven days, the bidder is no longer bound to the provisional bid. Once accepted, the bidder is obligated to proceed under standard auction terms.

Upon acceptance of bid (unless stated otherwise in the Special Conditions), a binding contract for the sale of the lot is created, without requiring the deposit as a precondition. For pre- or post-auction sales, payment of the deposit binds the purchaser to these Terms and Conditions.

Purchase before auction:

In the event of offer submitted online at prior to auction, same auction rules apply as if the offer was made during the auction and offer summited is treated as final bid (if the offer is accepted by the Seller in terms of purchase and Deposit paid including Buyers premium/fees) and property would be treated as sold where the Minute of Preference and Enactment will remain enforceable as per default auction rules.

The auctioneer may adjust the specified entry date in the auction contract if agreed upon by both Buyer and Seller. For deposits paid by telephone or proxy, no cooling-off period applies. If the purchaser fails to sign the contract, the auctioneer reserves the right to have a representative sign on behalf of the purchaser and principal.

If the purchaser is a limited company, the following conditions apply:

• (a) The successful bidder (the “Guarantor”) enters the contract on behalf of the company.
• (b) The Guarantor warrants that the company is duly constituted and authorized to purchase real property in the UK and that the Guarantor has authority to bind the company.
• (c) The Guarantor guarantees:
  • (*) To provide, upon request, documentation verifying the company’s status within five working days.
  • (**) To indemnify the seller for any losses, costs, or damages due to the company’s failure to perform contractual obligations, regardless of the seller’s enforcement actions.
  • (**) In the event of contract disclaimer by a liquidator, the seller may, within 28 days, require the Guarantor to complete the purchase within 14 days, with the completion date deemed essential.

4. Deposit

A default 5% deposit of the purchase price (minimum £3,000) must be paid immediately following the sale of each lot to the auctioneer, First Choice Property Auctions acting as agent for the seller. At times Seller may request specifically 10% deposit which will be then specified in Special Conditions of Sale/or description of the Lot if applicable to specific Lot/Property. This deposit is held as stakeholder between the parties. Payment must be in cleared funds as specified by the auctioneer. In addition, a non-refundable administration fee of 2% + VAT of the sale price (minimum £2,000 + VAT) is payable by the Buyer upon contract exchange (this is called ‘Buyer Premium’). If any variations to these terms apply, they will be noted in the online property schedule under “Terms of Sale” and shall take precedence.

If the purchaser fails to pay the remaining reservation deposit and fees, the auctioneer may resell the lot or require the prior bidder to complete the purchase at their last bid, without limiting the seller’s right to claim damages. In the event of dishonoured payment or failure to pay reminder for required amount immediately at post-auction, the seller may treat the contract as repudiated, rescind the sale, and resell the lot, with the option to claim damages for breach. The auctioneer may withhold the Minute of Preference and Enactment until the deposit is received in cleared funds.

5. Date of Entry and Payment of Balance of Purchase Price

The balance of the purchase price is due on the entry date, as outlined in the Special Conditions of Sale or, if unspecified, within twenty-eight days from the auction date, or sooner if mutually agreed by the Seller and Purchaser. The purchase price does not include Value Added Tax (VAT), which the Seller reserves the right to charge if applicable, supported by a valid VAT invoice. Payment of the balance by 3 pm on the entry date is an essential contractual requirement. If unpaid by this time, the Seller’s Solicitors may defer settlement or designate the following business day as the effective entry date for purposes of interest and apportionments.

In cases of delayed payment, the Purchaser is in material breach, accruing interest at 5% above the prevailing Bank of Scotland base rate until full payment or until resale and payment of the resale price. If the balance remains unpaid seven days post-entry date, the Seller may rescind the contract with prior written notice, forfeiting the Purchaser’s deposit and retaining the right to claim damages beyond the forfeited deposit. The auctioneer’s commission remains due from the vendor even in breach cases. Interest accrued is treated as a liquidated penalty unless the Purchaser’s non-payment is attributable to Seller’s fault.

If the Seller cannot or will not complete the sale, the contract will be voided at the Seller’s discretion, with all deposits returned to the Purchaser without liability. Any delay by the Seller may result in a revised entry date at the Seller’s discretion, which the Purchaser must accept.

5b. Payment Terms & Late Payment Clarifications – Auction fees (applicable to Buyers and Sellers fee only)

1. All fees payable to the Auctioneer are due immediately upon receipt of the invoice, and/or in accordance with the payment terms set out on the invoice.
2. If payment is not received by the due date, the Auctioneer shall be entitled to charge statutory interest on the overdue amount, without further notice, from the date the invoice fell due (or, if earlier, 30 days after the date of supply or invoice receipt, whichever is later), until payment is made in full.
3. The rate of interest shall be the Bank of England base rate prevailing from time to time plus 8% per annum (simple, not compound). At present, with the Bank of England base rate at 4.50%, the applicable rate is 12.50% per annum (approximately 0.0342% per day).
4. The Auctioneer also reserves the right to recover reasonable debt recovery costs, including but not limited to the fixed compensation amounts set out under applicable regulations, in addition to interest.
5. Nothing in this clause shall prejudice any other right or remedy available to the Auctioneer under statute or at common law for the recovery of overdue sums.

6. Insurance

Risk transfers to the Purchaser upon signing the Minute of Preference and Enactment, at which time the Purchaser must secure insurance. The Seller bears no responsibility for damage or loss from that point forward. The Purchaser remains obligated to complete the purchase, regardless of any damage to or destruction of the Lot.

7. Apportionment of Rents, Rates, Taxes, etc.

The Purchaser is entitled to rental income from the Lot starting from the date of full payment. Apportionments of rents, receipts, and outgoings between Seller and Purchaser will be calculated based on the date of entry on a daily basis, presuming a 365-day year.

8. Planning and Related Matters

The Purchaser is presumed to have investigated all relevant planning, road, footpath, and drainage matters and accepts the Lot subject to these conditions. No reliance should be placed on any catalogue descriptions or statements, verbal or written, regarding property details, potential development, or tenancy guarantees. No representation or warranty is provided by the Seller on the current or future permitted use of the Lot under the Town and Country Planning (Scotland) Acts or other related legislation.

The Lot is sold “as is” without warranty concerning its condition, planning permissions, or statutory orders. The Purchaser assumes liability for any Statutory Notices or costs associated with implementing them and accepts all local search results as final.

9. Title

The title is accepted as presented, and the Purchaser acknowledges satisfaction with the title’s sufficiency and the Seller’s right to convey it. The title is conveyed with any encumbrances, rights, servitudes, or restrictions per the Land Registration etc. (Scotland) Act 2012, including any specified in the title deeds or applicable by law. Feu-duties and ground annuals will only be redeemed as allocated, and the Purchaser assumes responsibility for ongoing common property and boundary obligations.

If the Lot’s title is unregistered, it will be processed per the Special Conditions of Sale. The Purchaser is responsible for any documents required by the Keeper of the Land Register to register or update the title, without recourse to the Seller.

10. Searches

The Seller is not required to provide legal reports, charges register searches, or letters of non-crystallization for floating charges on the Lot. No Letter of Obligation or Advance Notice will be provided. Discharges of any Standard Securities on the Lot will be completed by the Seller but will not include securities from previous creditors if the Lot is sold by a heritable creditor in possession.

11. No Warranties

The Lot is sold as-is, with no reliance on catalogue descriptions, advertisements, or information given prior to or at the auction. No warranty is given regarding accommodation, property values, burdens, servitudes, utilities, or planning permissions. The Purchaser assumes all risks, including any tenancy, lease, or occupancy agreements, as outlined in Section 75 of the Land Registration etc. (Scotland) Act 2012.

The Purchaser must examine all auction documents and is deemed to purchase with complete knowledge of these contents. Any rents or tenancy terms are accepted as stated, even if they differ from catalogue details, and the Purchaser agrees to all current lease terms as presented at the auction.

12. Claims Against the Property

The Purchaser agrees to indemnify and hold the Seller harmless from all claims asserted by tenants or other parties, regardless of whether these arise through agreement, Common Law, or statute. This includes any payments or assessments related to repairs, whether one-time or by instalment, and whether such obligations are mandated by statute, Local Authority notice, Common Law, or otherwise. The Seller makes no warranty regarding the condition of the property, and the Purchaser accepts it as is at the time of sale.

13. Delivery of Disposition or Assignation

Upon the date of entry (‘Date of Entry’), and following payment in full of the purchase price plus any applicable interest, the Seller will deliver to the Purchaser: (i) a duly executed Disposition or Assignation of the Lot in favour of the Purchaser, inclusive of any reservations, burdens, and conditions detailed in the Lot’s title deeds or otherwise affecting the property; and (ii) any relevant documentation related to occupancy, tenancy, or leases. Exclusions to the warrandice granted in the Disposition will cover all existing leases, servitudes, rights of possession, and other rights of any form. The Seller is not obligated to convey or assign the Lot, in whole or part, to any party other than the Purchaser, nor to execute a Disposition or Assignation of any portion of the Lot at a price differing from that stipulated in the Minute of Preference and Enactment.

14. Authority of the Auctioneer

The Auctioneer named in the Minute of Preference and Enactment shall act as Judge of the Roup and holds the authority to resolve any questions or disputes that arise during the auction between the Seller and a bidder, or among the bidders. This includes the right to determine the highest bidder and to adjourn the auction as needed.

15. Completion and Continuing Obligations

Despite the delivery of the Disposition or Assignation, these General Conditions of Sale, any Special Conditions of Sale, the Articles of Roup, and the Minute of Preference and Enactment will remain enforceable to the extent not fully implemented by the date of entry. After six months from the date of entry, the contract will cease to be enforceable. In cases where a memorandum of sale replaces a Minute of Preference and Enactment, the Purchaser is responsible for ensuring that the sale proceeds under these terms and conditions. In the event of discrepancies or disputes regarding contract terms, prices, or parties, reference will be made to the auctioneer’s notes and any relevant evidence. Failure by the Seller to produce a home report or Energy Performance Certificate (EPC), where required, does not constitute breach of contract; the Seller is responsible for compliance with applicable requirements, including the production and cost of these documents.

16. Disclaimer of Responsibility for Representations

All statements in the Particulars of Sale are provided without responsibility by the Auctioneers or the Seller. They are expressions of opinion only, not representations of fact. The Purchaser is deemed to have conducted necessary inspections to verify these statements. Neither the Seller nor the Auctioneers warrant or represent any aspect of the Lot, and the Auctioneers and their representatives hold no authority to make representations on behalf of the Seller. The Purchaser acknowledges that no reliance has been placed on any statements or representations, whether in writing or otherwise, made on behalf of the Seller.

17. Governing Law and Jurisdiction

These General Conditions of Sale, together with the Minute of Preference and Enactment and the Articles of Roup, shall be governed by the Law of Scotland. By signing the relevant documents, the Seller and Purchaser consent to the jurisdiction of the Sheriff Court in Scotland for all matters arising from this agreement.

Please refer to General Glossary of Terms to refer to specific terms used in this agreement as those are binding in addition to this agreement.

18. Arbitration and related other matters

Any disputes regarding the interpretation of these Articles of Roup, the Minute of Preference and Enactment, or the respective rights and obligations of the parties shall be submitted to binding arbitration, conducted by an arbiter experienced in residential or commercial property, as appropriate. The arbiter shall be appointed by the President of the Law Society of Scotland, and their decision shall be final and binding on all parties. The provisions of Section 3 of the Administration of Justice (Scotland) Act 1972 are expressly excluded from this process.

19. RICS Common Auction Conditions Edition 4 application

For unspecified terms Judge of the Roup will refer to RICS Common Auction Conditions as guidance, or to applicable local laws if above contradicts.

Glossary of Terms (Scottish Property Auctions & Estate Agency Services)

Buyer

The Buyer is the individual or legal entity who makes a successful offer to purchase a property, whether by auction or private treaty. The buyer becomes legally bound to proceed with the purchase in accordance with the auction terms and conditions or concluded missives if applicable in specific case and is responsible for payment of the purchase price, buyer’s premium, LBTT, and any other applicable fees or taxes.

Seller

The seller is the individual, company, executor, trustee, or legal entity with legal authority to sell the property. The seller enters into a binding agreement with First Choice Property & Auctions and is responsible for payment of agreed fees, marketing charges, and compliance with all legal and disclosure obligations.

Guide Price

The guide price is an indication of the seller’s minimum expectation and is provided for guidance purposes only. It is not a valuation and does not represent the final sale price. The guide price may be set below the seller’s reserve price to encourage interest and competitive bidding.

Reserve Price

The reserve price is the confidential minimum price at which the seller has agreed to sell the property. If bidding does not reach the reserve price, the property will not be sold. The reserve price is agreed between the seller and First Choice Property & Auctions and is not disclosed.

Lot Number

The lot number is the unique reference number assigned to each property or asset offered for sale. It is used to identify the property in marketing materials, legal documentation, and during the bidding process.

Date of Entry

The date of entry is the agreed date on which ownership of the property transfers from the seller to the buyer and vacant possession is given, unless otherwise stated. In Scotland, this date is fixed within the concluded missives following a successful auction or private treaty sale.

Deposit Payable

The deposit payable is the sum required from the successful bidder immediately upon the fall of the hammer or within the timescale stated in the auction terms and conditions or based on successfully accepted offer submitted by the Buyer and presented to the Seller. The deposit forms part of the purchase price and is generally non-refundable, except where permitted under law or the auction conditions.

Buyer’s Premium

The buyer’s premium is a non-refundable administration fee payable by the successful Buyer to First Choice Property & Auctions, in addition to the purchase price. The buyer’s premium contributes towards the costs of marketing, administration, and conducting the auction and is payable regardless of completion. Currently fee is 2% plus VAT or £2,000 plus VAT minimum if lower.

Home Report

A Home Report is a statutory document required for most residential properties marketed for sale in Scotland, in accordance with the Housing (Scotland) Act 2006. It typically comprises a Single Survey, Energy Report, and Property Questionnaire and is provided to assist prospective buyers in making an informed decision prior to bidding. At times properties will be exempt from this document and this may be applied by estate agents if applicable.

Late Payment Fees

Late payment fees may be charged where any monies due under the auction terms, including purchase price, buyer’s premium, or other fees, are not paid by the specified deadline. Interest may accrue on outstanding sums in line with the auction conditions and applicable Scottish law.

Introduction of Buyer

‘Introduction of Buyer’ refers to circumstances where First Choice Property & Auctions introduces a purchaser/Buyer to a property, whether before, during, or after the auction process through estate services. An introduction is deemed to have occurred where the Buyer was made aware of the property through marketing, advertising, viewings, direct contact, or other promotional activity carried out by the company. We will keep details of those purchasers/Buyers and we will execute this clause as per normal ‘Estate Services’ up to 12 months since termination of the agreement should the purchaser/Buyer approach direct the Buyer at any point through duration of contract and 12 months after termination of the contract and sales becomes concluded with the purchaser/Buyer during this 12 months post agreement duration.

Estate Services

Estate services may include one or more services including: a property appraisal, sales advice, buyer feedback, buyers negotiation, marketing, auction entry, and sales related services provided by First Choice Property & Auctions in connection with the sale of a property. We act as Sole Estate Agents and if more estate agents are acting Seller will be liable to our fees as normal, other agents may apply their fees, but this will be down to Seller to settle those at their sole responsibility.

Private Treaty Sale also called off-the-market or 3rd party sale

A private treaty sale refers to a transaction where a property is sold by agreement between the Seller and a Buyer before the scheduled auction date, following marketing or introduction by First Choice Property & Auctions in its capacity as ‘Estate Services’ Agent. Fees are applicable as per pre-auction sale fees clause and equal to normal auction fees, unless First Choice Property & Auctions mutually and in writing agrees to wave element, but not less than 2% of Sales Price Agreed/being agreed consideration to sell/and or buy the property with £2,000 plus VAT minimum if lower.

Pre-Auction Sale Fees

Pre-auction sale fees are fees payable to First Choice Property & Auctions equal to normal auction fees, where a property is sold by private agreement prior to auction, having been marketed, advertised, or introduced to a Buyer by the company. These fees are payable in accordance with the seller’s signed terms of engagement and remain due irrespective of whether the auction proceeds. Costs remain payable in accordance with standard auction fees under seller’s agreement and not less than 2% of sales proceeds consideration agreed with £2,000 plus VAT being minimum if lower.

Introduction Fee (Private Agreement) Prior & After Auction

An introduction fee may be payable where First Choice Property & Auctions has introduced a Buyer who proceeds to purchase the property by private agreement prior but also after auction. Introduction includes awareness of the property through the company’s marketing, viewings, online listings, and/or direct communication. Please refer to ‘Introduction of Buyer’ term as those terms apply too including fees and duration terms.

Withdrawal from Auction – intension to sell privately

Withdrawal from auction occurs where a Seller removes a property from the auction catalogue or marketing process. Where withdrawal follows the introduction of a Buyer or results in a private treaty sale, applicable estate agency fees, marketing charges, and administration costs remain payable in accordance with the seller’s agreement and not less than 2% of sales proceeds consideration agreed with £2,000 plus VAT being minimum if lower (being buyers fee equal) and added sellers agreed fees as per listing agreement.

Abortive Marketing Costs

Abortive marketing costs are charges payable to cover marketing and administrative expenses incurred where a property does not proceed to auction but has already been marketed or advertised. These costs are non-refundable and detailed within the agreement between Seller and First Choice Property & Auctions before listing property under cancellation fees clause.

Dual-Role Agency

Dual-role agency refers to circumstances where First Choice Property & Auctions acts as both estate agent and auctioneer. Where a sale is concluded privately following estate agency activity, the transaction is treated as an estate agency sale and the relevant fee structure applies. Again fee is equal to normal auction fees with minimum of 2% of sales proceeds payable or £2,000 plus VAT and Sellers fees as per agreement with Seller prior to listing of the property.

Missives

Missives are the legally binding contractual documents exchanged between the buyer’s and seller’s solicitors in a Scottish property transaction. At auction, missives are often deemed concluded immediately upon the fall of the hammer or successful offer accepted, subject to the auction terms and conditions.

Land and Buildings Transaction Tax (LBTT)

Land and Buildings Transaction Tax (LBTT) is a tax payable by the buyer on the purchase of property in Scotland, calculated based on the purchase price and payable to Revenue Scotland within statutory timescales. Responsibility for LBTT rests solely with the Buyer.

Disclaimer

All properties are sold subject to the auction terms and conditions and/or estate agency terms of engagement. Prospective buyers and sellers are strongly advised to review all legal documentation and obtain independent legal advice prior to entering into a binding agreement.