Key online property auctions terms

If you are unfamiliar with the online property auction world, there could be a few phrases that you haven’t heard of before. We’ve compiled here a short list of terms that will help you.

Is there a term that you’ve encountered while buying/selling property at auction that isn’t here? Let us know!

Key terms

A

Anti Money Laundering Regulations - Rules to prevent money laundering. It is the agent’s responsibility to complete these checks and adhere to the regulations.

Appraisal - The act of estimating the value of a property by a person licensed to do so.

Auction - A public sale in which goods or property are sold to the highest bidder.

Auction Agreement - An agreement between the seller, buyer and the auction house.

Auctioneer - A person who conducts auctions by accepting bids and declaring goods sold.

Auction House - A company that runs auctions.

B

Bid - To offer a certain price for something, especially at an auction.

Bid Amount - The price offered for a property.

Bidder - A person or organisation making a formal offer at an auction.

Bidder Deposit - A sum of money paid by a person or organisation at an auction.

Booked Viewing - When a potential buyer books in to view a property prior to the sale taking place.

Buyer - A person who makes a purchase.

Buyer Fee - In an auction, a fee paid by the purchaser to the person or organisation holding the auction on top of the top bid.

Buying - When a person offers money to purchase a property.

C

Chain Free Sales - Where a buyer can transact on a property without waiting for another to sell.

Common Auction Conditions - A general set of rules used for sales by auction of real estate in England and Wales

Completion - The final stage of when a property transaction is completed.

Completion Date - This is the date on which title to the property is transferred by the seller to the buyer and the buyer take possession of the property.

Conditional Online Auctions - This is when a reservation agreement is entered into between the buyer and the seller to immediately at the end of the auction, with the exchange occurring up to 20 working days later.

Conveyancing - The legal process of transferring property from one owner to another.

Credit Rating - An estimate of the ability of a person or organisation to fulfil their financial commitments, based on previous dealings.

Credit Report - A detailed report of an individual’s credit history. Credit bureaus collect information and create credit reports based on that information, and lenders use the reports along with other details to determine loan applicants’ credit worthiness.

D

Deposit - A sum of money paid by the buyer on exchange of contracts. It is part payment of the purchase price. If the buyer withdraws from the property transaction, the deposit would be forfeited. It is usually 10% of the purchase price

E

Estate Agent - A person whose job involves advising on, selling and renting out buildings and land.

Exchange - This is when there is a legally binding contract between seller and buyer for the sale and purchase of a property.

F

Floorplan - A scale diagram of the arrangement of rooms in one storey of a building.

G

Ground Rent - Rent paid under the terms of a lease by the owner of a building to the owner of the land on which it is built.

H

Holding Deposit - A sum of money paid to a landlord or letting agent to reserve a rental property before the signing of a tenancy agreement.

I

ID Checks - Security checks that carried out to comply with legal regulations

J

Joint Steering Committee On Money Laundering Group - Made up of the leading UK Trade Associations in the Financial Services Industry. Its aim is to promote good practice in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations.

L

Landlord - A person who rents out land, a building, or accommodation.

Legal Pack - This is the information compiled by the seller. Contains copies of the Title Deeds, Special Conditions of Sale, Land Registry Search, Leases (if applicable) and other pertinent documents.

M

Minimum Price - The lowest price on offer for a property.

Mixed Use - A type of urban development that blends residential, commercial, cultural, institutional, or entertainment uses, where those functions are physically and functionally integrated.

N

Negotiator - A person who conducts negotiations.

O

Online Exchange - This is when there is a legally binding contract between seller and buyer for the sale and purchase of a property online.

Open House Viewings - When prospective buyers are welcomed to view a property prior to a potential purchase.

Opening Bid Amount - The first price put on offer by a buyer during an auction

P

PCI Compliance - The payment card industry data security standard (pci dss) is an information security standard for organisations that handle branded credit cards from major card schemes.

Private Treaty - The agreement for the sale of a property at a price negotiated directly between the seller and buyer.

Prospective Buyer - Any person or a company proposing to purchase or acquire properties in an online auction.

Proxy Bid - Where a buyer unable or does not wish to bid online themselves can input their automatic proxy bid, allowing the system to bid on their behalf up to and including their highest bid. Where two proxy bids of the same amount are placed in the system, the proxy bid that is placed first is given priority.

Purchase Price - price an individual pays for a property on a online auction.

R

Reserve Price - the lowest acceptable price the seller is willing to sell a property for in a online auction.

RICS Common Auction Conditions - general conditions for use in sales by auction of real estate in England and Wales.

S

Sale Memorandum - a document recording that both the buyer and seller have agreed to the transaction of a property.

Sale Price - The final price after the auction finishes.

Solicitor - a member of the legal profession qualified to deal with conveyancing, the drawing up of wills, and other legal matters

T

Transaction - an instance of buying or selling a property

V

Vendor - A person or company offering a property for sale