The Buyers Path – A Pictorial Guide:
Discovery, Exploration, Understanding & Sign-Up.
SEARCH, DUE DILIGENCE & REGISTRATION
Identification of Lots.
Viewings & Review of Documentation, Complete KYC &
Transfer Bidder Security.
PRE-AUCTION & AUCTION PERIOD
LEGALS & COMPLETION
Buyers & Sellers Brokers Coordinate both the Conveyance & Completion Process.
MOVE IN !!
What does signing up allow me to do?
To gain full access to our website you need to sign up and enter the required details. As a signed-up user, you will be able to create your own watchlist.
How do I go about finding my perfect property?
As a user you can utilise the system by searching for your desired lot using our intuitive filters. When you have identified a lot that matches what you are looking for, you can add this to your watch list. We will then automatically keep you up to date with any developments relating to your selected lots.
What laws exist in respect of an auction and how, as a participant, do they affect me?
Do you recommend undertaking due diligence prior to bidding?
What due diligence steps might a prospective bidder typically undertake?
The seller provides a wealth of information which is displayed within the lot page to assist you in determining whether you wish to submit a bid and if so, for how much. We present the information in all good faith; however, we do not guarantee its accuracy, rather, it is up to you and your professional advisers to determine such. Prospective bidders might want to:
- Physically view the lot or appoint a representative to do so on your behalf.
- Commission a survey to determine the current market value and structural integrity of the lot.
- Appointing legal representation to review all the documentation made available within the lot page and undertake any additional research as necessary.
How can I fund my auction purchase?
I’m keen to participate how do I go about registering and gaining authorised buyer status?
To be eligible to bid on our online platform for a specific lot, you must first register to buy with us and be approved as an authorised buyer. Click on teh lot you intent bidding for, then click on registration and submit as requested.
There are a number of requirements including:
- Providing personal details including name, proof of identity, email, contact telephone numbers and address. If other persons including legal entities are participating, you will need to contact our administration team and provide them with the additional details.
- Providing details of the licenced real estate broker who will represent you as buyer should you be successful at auction. Should you need a referral please contact our office.
- Agreeing to both our auctioneer terms and the specific conditions of sale relating to the lot.
- Providing bidder security to us. This amount is automatically returned if you are unsuccessful at auction.
Why do I have to be represented by a broker when buying a property at auction?
We are not a licenced real estate brokerage, we are not entitled to, nor experts at, coordinating and assisting buyers and sellers and their various associated third-party service providers complete the resultant transaction in a timely, correct and efficient manner.
Can you introduce me to a top quality broker?
Our shareholders established “HouseUp” (see houseuprealestate.com) a Dubai based licenced real estate brokerage to ensure that clients, just like you, are provided with a 360 degree professional service.
For more information please contact our office.
Do I have to register before I can bid?
Registration to bid is compulsory for all buyers at all of our auctions. You can complete your registration online. Click on the lot you intend bidding for, then click on registration and complete and submit as requested.
When should I register?
What happens if I cannot complete the online registration process?
What elements make up acceptable ID documentation?
- Passport and;
- Emirate’s ID and;
- Visa and;
- If not UAE resident, Driver’s licence
Should the registration application be made by a legal entity or multiple individuals please contact our office.
Do I have to place bidder security with you?
Yes, all potential buyers must place bidder security with us prior to being granted permission to participate. You can do this by means of wire transfer to our client monies account. The monies are automatically returned if you are unsuccessful at auction. Unless you have instructed us to hold your bidder security monies on account, which will enable you to bid on multiple lots without necessitating your full re-registration. Bidder security ensures that only those with serious intent register as buyers and place bids with us. On receipt and approval of your first registration to bid for a lot we will email you transfer details.
How much is bidder security?
The amount of bidder security deposited determines your bidding limit, see below.
|Bidding Limit (AED)||Deposit (AED)|
|AED 880,000||AED 37,000|
|AED 2,000,000||AED 84,000|
|AED 2,500,000||AED 105,000|
|AED 3,000,000||AED 126,000|
|AED 3,500,000||AED 147,000|
|AED 4,000,000||AED 168,000|
|AED 4,500,000||AED 189,000|
|AED 5,000,000||AED 210,000|
|AED 7,500,000||AED 315,000|
|AED 10,000,000||AED 420,000|
Bidder security is always 4.2% of the any bidder limit you wish to have. If you have reached you bidder limit during the auction period, but would still like to continue bidding, you can increase you bidder limit by increasing the bidder security held by us.
What happens to the bidder security if I am successful at auction?
As per the auctioneers’ terms, to which you are party, we retain the bidder security and apply it as settlement of the buyer’s commission fee due immediately from you to us for bringing the lot you are purchasing to auction. Our fee is calculated at 4.2% inclusive of VAT of the winning bid amount/accepted offer. The balance of the bidder security after deducting our fee will be returned to you.
Bidder Limit: AED2,000,000
Bidder Security paid: AED 84,000
Winning bid amount: AED1,750,000
Buyers commission fee due: AED73,500
Bidder security to be returned: AED10,500
If you are unsuccessful at auction we will return the bidder security to account from which it originated after the close of the auction period unless you have requested that we retain the bidder security to apply against the other lots.
How long does it take before I can place a bid?
Your ability to bid depends on you bidder registration process. We will notify you via email once all forms have been completed and all checks have been done. We recommend that you start the registration process at least 3 business days before the start of the Auction period to allow sufficient time for the transfer of the bidder security especially if transfers are made from outside the UAE.
I registered and bid with you sometimes ago, do I need to go through the ID process again?
What actually happens during the auction period?
Our secure online marketplace, www.auctionsglobal.com allows authorised buyers to participate in our auctions real-time from anywhere in the world. Lots are offered for sale within their own unique auction period.
At the close of the auction period if the lot was offered without reserve, then on the fall of the virtual auctioneer’s hammer a binding contract is created between the seller and the winning bidder both parties are legally obliged to complete the purchase, no further negotiation is allowed.
If the lot is offered with reserve and the reserve was reached, then the above-mentioned procedure is followed. If, however a winning bid is logged which falls short of that figure then the seller must decide, within three hours of the close of the auction, whether to accept the low winning bid, re-auction the property or withdraw the property. Should they accept the bid then both parties are legally obliged to complete the purchase.
After the auction what happens prior to completion?
Actions taken by AuctionsGlobal,
- Retain an appropriate percentage of the bidder security and apply it as settlement of the buyer’s commission fee due to us ; whilst simultaneously returning all bidder security monies to those who were unsuccessful unless such unsuccessful bidders request that monies be held on account for participation in future auctions;
- Populate and electronically sign the sales and purchase agreement on behalf of both the buyer and the seller;
- Distribute copies of the sales and purchase agreement, the specific conditions of sale and our auctioneers’ terms, to which both parties have agreed to abide; to the buyer, the seller and their respective brokers;
Actions taken by the brokers
The brokers are responsible for ensuring that the transaction completes as per the terms stated and agreed upon in the conditions of sale. If you have any questions regarding the completion process please reach out to your broker.
How long does the auction period for a specific lot last?
When can I start bidding?
What does the bidding portal look like?
If you open the “Property Bidding Page” prior to the auction commencing you will notice the bid increment amounts will be inactive and display the message “Awaiting auctioneer to allow online bidding” once the auctioneer activates online bidding this message will disappear.
At the top of the “Property Bidding Page,” you will notice either the property image or address.
To place a bid online you will be required to tap the grey increment amounts, these can be tapped multiple times to reach the desired amount you wish to bid. The bid amount will be displayed with the “Bid Counter” which is located above the grey bid increment amounts, to submit your bid to the auctioneer, simply tap the green ”place bid” button.
Before an auction commences, please ensure your device is connected to a fast and stable internet connection and is up to date with the latest software and updates. All bids are in AED.
When bidding what is the difference between an Immediate Bid and a Maximum Bid?
How are Minimum Bid Increments set and why?
Bid increments provides certainty and assists and encourages authorised buyers to bid. They can place not only a series of immediate bids but also submit a maximum bid secure in the knowledge that their interests are protected. When a maximum bid is placed the bidder’s next bid, to achieve the highest bid price, will only be the current highest bid plus the lowest available bid increment. The available bid increments are:
To place a bid online a bidder will be required to tap the grey increment amounts, these can be tapped multiple times to reach the desired amount they wish to bid.
Can I bid on multiple lots?
Yes, but be aware that prior to being granted the ability to bid for any lot you must register for each respective lot. Please note that registering to bid and signing up to use our website are different processes.
Can you facilitate settlement with Crypto Currency?
Yes, please contact the office for more details.
What is an Instant Sale Price?
What is a Guide Price?
What is a Reserve Price?
This is the minimum price the seller has indicated they are willing to sell the lot for at auction and will be published on the lot page.
Can the seller postpone the opening of the auction period?
Can the seller withdraw the lot from the auction after the auction period has opened?
Does it cost me anything to bid?
If I win the auction what do I have to pay you?
Our fee of 4.2% (inclusive of VAT) of the winning bid value is due immediately when a sale is agreed and a sales and purchase agreement ins populated signed and distributed. We take settlement by way of retention of an appropriate percentage of the held bidder security. Should for any reason the seller fail to complete the transaction we will our fee in full.