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Buyer’s Terms

Terms for Online Auctions

The Terms set out in this document govern the basis on which any person, including a legal person, resident or non-resident of the United Arab Emirates (“UAE”) may participate as a buyer (as defined below) in the online auctions conducted by AuctionsGlobal.

 

Definitions and Interpretation

In this document, unless the context otherwise requires, the following definitions and rules of interpretation shall apply:

  • Singular words may be read as plurals, and plurals as singular words.
  • A “person” includes an individual, as well as corporate body and all affiliations and representatives.
  • Words of one gender include other genders.
  • References to legislation are to that legislation as it may have been modified or re-enacted by the date of the Auction or the date of the Sale and Purchase Agreement.
  • References to the expressions “include”, “including” and “in particular” are to be read as if there were followed with the words “but without limitation”.

Agreement: means this agreement made on the date on which the terms are accepted electronically by the Buyer.

Auction: each auction conducted by AuctionsGlobal and/or its affiliates or subsidiaries. When these Terms mention “AuctionsGlobal”, “platform”, “we”, “us”, or “our”, they refer to ‘Charterhouse Auctions’, a sole establishment registered with the Economic Department in Dubai, UAE with licence number 961354 trading as ‘AuctionsGlobal’.

AuctionsGlobal Fee: 4% of the Sale Price (excluding VAT).

Auction Period: the period of time during which bidding is open for a Lot as published on the Lot page of the Website.

Authority: any of the Department of Economic Development (DED) in Dubai, the Real Estate Regulatory Authority (RERA), the Trustee Registration Office, and the Dubai Land Department (DLD) or any other relevant federal or local government authority in the UAE.

Bid: a bid submitted by the Buyer on AuctionsGlobal during the Auction Period.

Bidding Limit: the threshold limit up to which a Buyer can bid during an Auction, the Bidding Limit is determined by the amount of Bidder Security provided by the Buyer.

Bidder Security: the deposit amount that determines the Bidding Limit, as determined by AuctionsGlobal from time to time.

Broker: a professional organisation, company, partnership, sole trader or individual currently licensed by the relevant Dubai Authority to act in the capacity of a Real Estate Broker.

Buyer: a legal or natural person who participates in an Auction, and who agrees to buy the Lot; if two or more persons are jointly the Buyer, all obligations can be enforced against them jointly or against each of them separately.

Conditions of Sale: in respect of a particular lot, the relevant contractual conditions of sale applicable to that Lot, as set out or referred on the relevant Lot page. For the avoidance of doubt, the conditions of sale include:

  • all and any general and special conditions of sale applicable to the Lot;
  • any addendum relating to the Lot;
  • if a Lot is tenanted or not;
  • whether a Lot has a reserve price or not;
  • whether the Lot can be purchased with mortgage or cash only;
  • a guide price if one is indicated.

Compliance Documentation: the documentation proving the Buyer’s identity, address, source of wealth, source of funds and profile, certified, notarised and/or apostilled as AuctionsGlobal may request and direct from time to time in compliance with applicable legislation, regulations or internal policy.

Exclusivity Period: From three (3) hours prior to the opening of the Auction Period until seventy-two (72) hours after the close of the Auction Period during which the Seller confirms that AuctionsGlobal has exclusive rights over the sale of the Lot, as per the terms agreed between the Seller and AuctionsGlobal and documented in the Conditions of Sale.

Guide Price: a price published on the Lot page which provides prospective buyers with an indication of the Seller’s price expectations.

Instant Sale Price: a price the Seller is willing to accept for the property, before an Auction is commenced.

Lot: each separate Lot that the Seller has agreed to sell (including contents, if any). Each Lot is assigned a unique reference number used to identify the Lot.

OTP: a one-time password, valid for one transaction that the Buyer will receive on an electronic device.

Party: either the Seller or the Buyer, and collectively the “Parties”.

Pre-Auction Offers: bids made by a registered Buyer any time before the Auction Period begins.

Privacy Policy: the privacy policy setting out the standards that apply when using the Website.

Registration: the registration process (which includes anti-money laundering checks) that all Buyers must complete to the satisfaction of AuctionsGlobal prior to being able to participate in any Auction.

Reserve Price: the price below which the Lot will not be sold. Once the Reserve Price has been met, the Lot will be sold to the highest bidder. The Seller is within its rights should they so wish to accept an offer which does not meet the Reserve Price.

Sale and Purchase Agreement: the written agreement, which AuctionsGlobal will produce, sign and date on behalf of the Buyer to confirm the terms and conditions on which the Buyer has agreed to purchase the Lot for which a bid has been accepted via the Auction. For the avoidance of doubt, the Sale and Purchase Agreement may be used to confirm the terms and conditions applicable to a sale and purchase of a Lot either prior to or following the Auction. The Sale and Purchase Agreement is denominated in United Arab Emirates Dirhams (AED) only.

Sale Price: the price for which a Lot is sold.

Seller: the person selling the Lot. If two or more persons are jointly the Seller, their obligations can be enforced against them jointly or against each of them separately.

Terms: means the terms stated in this Agreement.

VAT: means Value Added Tax (currently 5%) or other tax of a similar nature applicable in the UAE.

Website: the AuctionsGlobal website at https://www.auctionsglobal.com together with any other website (including any third party website embedded in or otherwise accessible via the Website) which is used to allow prospective Sellers and Buyers to register and, subject to these Terms, participate in the Auctions.

 

Account Creation and Registration

Any individual or legal entity, whether a resident or non-resident of the UAE, who wishes to participate in an auction and purchase a Lot through the AuctionsGlobal platform may apply to be registered as a Buyer by completing and submitting the application form and providing all the required Compliance Documentation and the Bidder Security in the prescribed manner. AuctionsGlobal reserves the right to request for any additional Compliance Documentation that it may require as part of its verification process for onboarding a Buyer as a registered Buyer of the Website.

All Buyers must be at least 18 years of age or represented by a duly authorised individual who is at least 18 years of age and must have full legal capacity and authority to execute, deliver and perform these Terms.

A one-time Registration is sufficient for Buyers. There cannot be more than one account registered in the name of the same Buyer. Any attempt to create a duplicate account will result in the automatic removal of the duplicate account with immediate effect after verification and without any prior notification. A Buyer must register against each and every Lot they wish to bid for.

After the Buyer has registered with AuctionsGlobal, they may only amend their personal information (including email address and phone number), with the approval of AuctionsGlobal. Amendments of personal information can be done via a written request to info@auctionsglobal.com in line with the Privacy Policy.

The Buyer hereby agrees to be solely responsible for all information provided to AuctionsGlobal, including but not limited to, personal information. Furthermore, the Buyer indemnifies AuctionsGlobal from all liability arising directly or indirectly from the information and content submitted to AuctionsGlobal and AuctionsGlobal shall not be held liable for any liability arising directly or indirectly from any information and content uploaded by the Seller onto the AuctionsGlobal platform or Website. The Buyer is responsible to keep up to date with the latest terms of the Website.

The Buyer will receive all relevant notifications in relation to activities on AuctionsGlobal through the registered email and/or mobile number.

It is the responsibility of the Buyer to maintain the integrity of their communication devices. AuctionsGlobal will assume all instructions from the registered email and mobile number are from the Buyer. AuctionsGlobal shall not be responsible or liable if the Buyer does not receive notifications or OTP’s due to the following reasons:

  • the mobile number / email address on file is incorrect or out of date, unless the same has been communicated to AuctionsGlobal.
  • the Buyer’s service provider blocks AuctionsGlobal or the Buyer is otherwise unable to receive SMS’s.
  • use of spam filters / receiving emails in spam folders.

Please note that in the aforementioned situations, the communications in question shall be deemed to have been provided to the Buyer effectively.

By agreeing to these terms and conditions you agree that your personal data may be transferred and stored outside of the United Arab Emirates. The security of your personal data is essential to us, and to protect your data, we take a number of important measures, including data encryption to meet applicable legal requirements

 

Broker

The Buyer must appoint a Broker to handle the purchase of the Lot on the Buyer’s behalf. The role of the Broker shall include collaborating with the Seller’s duly appointed Broker, uploading all supporting documentation to the Dubai Land Department and dealing with the Dubai Land Department and the selected Trustee Registration Office up to and including the point of transfer of title. The Buyer must confirm details of the appointed Broker on Registration with AuctionsGlobal.

The Buyer’s relationship with the Broker is entirely separate to the Buyer’s relationship with AuctionsGlobal. AuctionsGlobal shall bear no liability for any loss or damage arising out of the actions of the Broker.

The Buyer will procure that the Broker conducts all activities necessary in order to successfully execute the transaction, including but not limited to those listed below:

  • complete and register with the Dubai Land Department the appointment form evidencing the appointment of the Broker by the Buyer (Form B).
  • in cooperation with the Seller’s duly appointed Broker coordinate the completion and registration of the agreement for sale (Form F or Unified Sell Contract or equivalent) with the Dubai Land Department via the REST app or Brokers portal.
  • ensure that the Seller’s Broker has coordinated the application for the developer NOC and any other clearances required to enable title in the Lot to be transferred to the Buyer, including but not limited to those relating to mortgages, outstanding services charges, planning violations and residency visas attaching to real estate.
  • coordinate with the Seller, Buyer, Seller’s Broker and the Trustee Registration Office in relation to the transfer meeting, to include emailing / uploading all documentation required by the Dubai Land Department in advance and then attending at the completion meeting.
  • ensure that the necessary payments due at the completion meeting including but not limited to the deposit, the balance purchase price, the Dubai Land Department transfer fee, the Trustee Registration Office fees, the service charges, the Broker commissions and any other payments agreed to be due and payable to ensure the transfer of title from the Seller to the Buyer in the records of the Dubai Land Department.

 

Documentary Requirements – Buyer

The Buyer agrees to provide to the DLD and to the Trustee Registration Office all documents required to transfer title in the Lot to the Buyer. The following comprises a summary of the documents that may be requested but is not meant to be an exhaustive list as the requirements of the DLD and to the Trustee Registration Office change from time to time.

Individual

  • Passport (and Emirates ID Card for UAE residents);
  • Any valid ID card from the country where he/she is a citizen

Sole Proprietorship/Sole Establishment/Foundation

  • Commercial license;
  • Copy of the owner’s passport;
  • Copy of the owners Emirates ID card;
  • Passport of the individual authorised to represent the Company.

Limited Liability Company (LLC)

  • Company Trade license / Certificate of Incorporation;
  • Certificate of incumbency;
  • Copy of Memorandum of Association;
  • Resolution of Board of Directors/Shareholders and Power of Attorney;
  • Passport of the individual representing the Company;
  • Passport copies and ID copies of Shareholders.

Power of Attorney (POA)

  • Original POA in format acceptable to the DLD;
  • Passport copy of the grantor of the POA / owner of the Lot;
  • Passport of the grantee under the POA;
  • If the POA holder is company – Trade License copy, Passport and ID card of the individual representing the Company.

Note these requirements are indicative only and intended only to be used as a guide. The DLD requirements change from time to time and the Buyer shall be responsible for ensuring that he produces the documents required by the DLD in the format requested by the DLD prior to completion of the transaction.

 

Account Suspension or Termination

AuctionsGlobal has the right to suspend or terminate an account in its absolute discretion, including but not limited to the following instances:

  • Use of fake or forged documents / information at the time of Registration,
  • Use of AuctionsGlobal for illegal activities.
  • Use of AuctionsGlobal for data-mining activities with an intention of commercial use for the same.
  • Use of AuctionsGlobal for the purpose of price manipulations or shell bidding.
  • AuctionsGlobal bears no responsibility for any loss or damage arising out of the suspension or termination of a Buyer’s account.

 

Process

Instant Sale

If an Instant Sale Price is published, in the event that a Buyer offers this price to the Seller, the Buyer and Seller agrees to purchase and sell the Lot at this price and the Auction will be cancelled immediately, and the sale will move to completion as an instant sale. The Lot will be deemed to have been sold as if via the Auction process.

Pre-Auction Offers

In the event that a Seller accepts a Buyer’s Pre-Auction Offer, the Auction will be cancelled and the sale will move to completion. The Lot will be deemed to have been sold as if via the Auction process.

During Auction Bids and Bidding Process

The Buyer agrees to purchase the Lot if the Buyer’s bid is accepted by the Seller, regardless of whether the Buyer’s bid equals or exceeds the Reserve Price.

Once AuctionsGlobal have accepted the Buyer’s winning Bid on the Seller’s behalf, the Buyer agrees to be bound by that acceptance. By accepting these terms, the Buyer hereby authorises AuctionsGlobal to populate and sign the Sale and Purchase Agreement on their behalf and the Buyer agrees to be bound by the terms set in the Sale and Purchase Agreement.

On the acceptance of the winning bid by AuctionsGlobal on behalf of the Seller the Buyer agrees to instruct the Broker appointed by the Buyer to take the action necessary to complete the transfer of the Lot to the Buyer with the Dubai Land Department in the prescribed manner.

Post Auction

In the event that the Seller accepts the Buyer’s Bid, the sale moves to Completion.

In the event that the Buyer’s Bid is less than the Reserve Price, the Seller may choose to accept or decline the bid; should the seller accept, the sale moves to Completion.

In the event that the Seller does not accept the highest Bid which is below the Reserve Price, the Buyer may offer the Seller a price which is greater than the Buyer’s highest Bid, provided that the higher offer is within the Buyer’s Bidder Limit.

 

Fees

The Buyer agrees that:

  • Upon creating an account and registering with the Website, the Buyer shall pay the Bidder Security, via wire transfer to a bank account nominated by AuctionsGlobal;
  • The minimum required amount of Bidder Security to participate in an Auction is currently AED 37,000 but will be decided by AuctionsGlobal from time to time;
  • The Bidder Security is currently set at 4.2% of the Buyer’s Bidder Limit but will be decided by AuctionsGlobal from time to time;
  • The Buyer may only bid in an amount up to the Bidder’s Limit; the Buyer may only increase the Bidder Limit by increasing the amount of Bidder Security provided;
  • In the event that a Buyer is successful in bidding for a Lot, whether via an Instant Sale, Pre-Auction Offer, or during an Auction, then the AuctionsGlobal Fee becomes due and payable;
  • AuctionsGlobal may collect the AuctionsGlobal Fee from the Bidder Security it holds on account from the Buyer;
  • In the event that a Buyer is unsuccessful in bidding for a Lot, the Bidder Security will be transferred via wire transfer to the original bank account from which the Bidder Security amount originated, unless the Buyer instructs AuctionsGlobal in writing that the Bidder Security is to be used as funds on account to participate in another Auction to purchase another Lot;
  • If the Buyer fails to complete on the terms of the Sale and Purchase Agreement, AuctionsGlobal will retain 100% of the commission plus VAT due on the hammer price accepted;
  • The Seller and Buyer may take legal action against whichever party defaults under the terms of the Sale and Purchase Agreement, but the Buyer agrees that AuctionGlobal shall not be responsible for the default of either party and the Buyer shall take no action against AuctionsGlobal and shall indemnify AuctionGlobal against any claim, loss or damage arising out of any such default or action.

Taxes and duty charges: Buyers agree to pay (i) all sales, use, excise, VAT and any other taxes and fees which the Buyers are required to pay to any governmental authority (and, at the request of AuctionsGlobal, will provide the evidence of such payment) and (ii) any taxes payable or paid by AuctionsGlobal to any governmental authority that are attributable to the Parties participation on the platform.

Late Payment: If the Parties do not pay any fees, Commission and charges when due, a fee will be charged on all overdue balances. If the Parties dispute any part of an invoice, they must pay the amount that is not in dispute by the due date or be subject to late fees. AuctionsGlobal also reserves the right to withhold services and access to the platform while there are any outstanding fees and / or interest to avoid breaching this Agreement.

Legal Fees: The Buyer agrees to be liable for any costs incurred by AuctionsGlobal, including but not limited to any fees, expenses, advocate’s fees, court fees and any other associated costs which are necessary and incidental to the same, in addition to compensation, in the event of the Buyer’s breach of any of the Terms.

 

General Terms

Liability: AuctionsGlobal has no liability for the consequences, including delay in or failure to provide the services, arising out of any failure by the Buyer or any agent of the Buyer, to promptly provide information or other material that AuctionsGlobal requires, or where the information or material provided is inaccurate or incomplete. The Buyer warrants that, where it provides information or material to AuctionsGlobal, AuctionsGlobal is entitled to rely on its accuracy. The liability of AuctionsGlobal in contract, tort (including negligence or breach of statutory duty), and misrepresentation or otherwise howsoever caused or arising out of or in connection with the provision of services or otherwise under this Agreement is not limited in the case of fraud or were its negligence causes death or personal injury, but otherwise: is excluded if caused by circumstances beyond AuctionsGlobal’s reasonable control and excludes indirect, special and consequential losses, including but not limited to loss of profits, missed opportunities, economic loss. If AuctionsGlobal is found liable, its liability is limited to the share of loss directly attributable to AuctionsGlobal notwithstanding the existence of other parties which may not pay any share of loss attributable to them. In any event, liability shall be limited to the aggregate of all professional fees paid to AuctionsGlobal by the Buyer over the course of a calendar year under this Agreement. AuctionsGlobal owes no duty of care and has no liability to anyone but the Buyer, unless specifically agreed in writing. No third party is intended to have any rights under this Agreement, unless agreed in writing. AuctionsGlobal has no liability for products or services that it reasonably needs to obtain from others in order to provide the service.

Communication: The Buyer will appoint, for the purpose of this Agreement, a representative who will act as liaison with AuctionsGlobal. AuctionsGlobal may use electronic communication and systems to provide services. A notice is valid if it is in writing and addressed to the last known address of the addressee and is to be treated as served(i) when delivered (if delivered by hand through a Notary Public in the UAE (if it is during normal business hours) otherwise, when business hours next commence); or (ii) two business days after posting (if posted by recorded delivery). Notice may not be given via email.

Confidential Material: Each Party must keep confidential all information and material of commercial value to the other Party of which it becomes aware. It may use it only to the extent reasonably required in providing the service. It may disclose it only if the other Party agrees or if it is required to do so by law, regulation, or other competent authority. Neither AuctionsGlobal nor the second Party may publicise or issue any specific information to the media about the service or its subject matter without the consent of the other. The aforementioned obligations continue even after termination of this Agreement.

Termination: Any Party may terminate the Agreement immediately by notice to the other if the other has not satisfactorily rectified a substantial or persistent breach of the Agreement within the reasonable period specified in an earlier notice to rectify it or is insolvent according to the laws of its country of incorporation. Termination of the Agreement does not affect any claims that arise before termination or the entitlement of AuctionsGlobal to its proper fees up to the date of termination or to be reimbursed for its expenses. The Agreement is considered to have started as of the date from when AuctionsGlobal began delivering services.

Force Majeure: If the performance of the obligations of the Parties is affected by an event of Force Majeure (including but not limited to civil disturbances, riots, strikes, act of God, war, government decisions or any other acts of similar nature which are unforeseen and beyond the control of either Party), then the Parties agree this to be a sufficient reason for delay and non-performance provided it is traceable to any of these causes.

Severability: The invalidity, illegality and unenforceability in whole or in part of any of the provisions of this Agreement shall not affect the validity, legality or enforceability of its remaining provisions which shall remain in full force and effect.

Waiver and Severance: Failure to enforce any of these Terms is not a waiver of any right or subsequently enforce that term or any other term of the Agreement. The invalidity, illegality, and unenforceability in whole or in part of any of the provisions of this Agreement shall not affect the validity, legality or enforceability of its remaining provisions which shall remain in full force and effect.

Responsibility: AuctionsGlobal is not a law firm, a tax consulting firm, a financial services firm, a real estate brokerage or a valuation company, and therefore the Buyer cannot rely on AuctionsGlobal for these services and should obtain independent advice on these matters

Governing Law: This Agreement shall be governed by, construed and interpreted in accordance with the laws in force in the Emirate of Dubai, and the federal laws of the United Arab Emirates.

Miscellaneous: No amendment to these Terms shall be valid unless executed in writing and signed by both Parties hereto. Neither Party hereto may assign its interest hereunder without the prior written consent of the other Party. Words importing the singular number include the plural and vice versa. The obligations of each Party shall be binding upon its heirs and assigns. The Parties hereby agree to undertake all such steps as may be necessary to give effect to the provisions contained in these Terms.