Property auctions move fast, and when you’re caught up in the excitement of bidding, it’s easy to overlook critical contract details that could cost you dearly. With the recent publication of the fifth edition of RICS Common Auction Conditions in August 2025, many long-standing issues are finally being addressed. Here are seven crucial mistakes that buyers and sellers continue making. Learn how the new standards are designed to protect you.
Mistake 1: Getting Lost in Legal Jargon
The Problem: Traditional auction contracts have been notorious for their dense legal language. Even experienced property investors often find themselves scratching their heads. Complex terminology, archaic phrasing, and convoluted clauses create confusion and leave room for costly misinterpretation.
How New RICS Standards Fix It: The latest edition specifically mandates the use of plain, accessible language throughout all auction documentation. This isn’t just a cosmetic change – it’s a fundamental shift designed to ensure every participant understands exactly what they’re agreeing to. The new standards align with consumer rights legislation. They make contracts genuinely readable rather than legal puzzles.
This change is particularly important because auctions now attract private buyers, not just seasoned property professionals. When you can actually understand what you’re signing, you make better decisions and avoid unpleasant surprises down the line.
Mistake 2: Assuming All Auction Conditions Are the Same
The Problem: Many buyers enter auctions assuming that contract terms are standardized across the industry. This dangerous assumption leads to oversights. Different auctioneers use varying conditions, special clauses, or unique requirements that catch participants off guard.
How New RICS Standards Fix It: The Common Auction Conditions serve as the industry standard. They have provided a consistent framework that’s been widely adopted since 2002. The fifth edition strengthens this standardization by establishing an even clearer, more consistent set of procedures. This reduces variation between different auction houses.
While some variation will always exist through special conditions, the new standards ensure that the core framework remains predictable. This means you can build expertise and confidence by understanding one comprehensive system. You’ll no longer have to learn new rules for every auction house.
Mistake 3: Ignoring Money Laundering Compliance Requirements
The Problem: With increasingly strict anti-money laundering regulations, many auction participants unknowingly put themselves at risk. They fail to provide proper documentation or understand their compliance obligations. This can lead to delayed completions, failed purchases, or even legal complications.
How New RICS Standards Fix It: The fifth edition incorporates comprehensive updates to comply with current Money Laundering Regulations. This ensures all auction contracts remain compliant with today’s regulatory environment. This proactive approach means participants have clear guidance on what documentation they need and when they need to provide it.
The updated standards make compliance a built-in feature rather than an afterthought. They protect both buyers and sellers from regulatory risks that could derail transactions.
Mistake 4: Overlooking Hidden Fees and Unclear Guide Prices
The Problem: One of the most frustrating experiences in property auctions is discovering unexpected costs. Buyers also find guide prices were misleading. Buyers often focus solely on their bidding strategy while ignoring buyer’s premiums, legal fees, or other charges. These significantly impact the total investment required.
How New RICS Standards Fix It: The new guidance places heavy emphasis on transparency, requiring auctioneers to provide clear information about guide prices and confirmation of all fees before the auction begins. This includes revised guidance on guide prices following recent decisions from the Advertising Standards Authority.
Under the updated standards, you should receive explicit confirmation of all auctioneer fees. Look for any addendums that might affect the sale. There should be clear explanations of how guide prices might change throughout the marketing period. This transparency allows you to budget accurately. It helps avoid unwelcome financial surprises.
Mistake 5: Dealing With Scattered Documentation
The Problem: Traditional auction contracts often scattered essential information across multiple documents. These include general conditions, special conditions, addendums, legal packs, and various schedules. This fragmentation makes it nearly impossible to get a complete picture of your obligations and rights, leading to oversights and misunderstandings.
How New RICS Standards Fix It: The fifth edition focuses heavily on consolidating all essential terms and conditions. They are now into a single, user-friendly document. This streamlined approach reduces reliance on additional special conditions. It creates a more manageable legal framework.
Instead of juggling multiple documents and cross-references, you now get a comprehensive overview in one place. This consolidation doesn’t just make life easier – it significantly reduces the chances of missing critical information that could affect your purchase.
Mistake 6: Using Outdated Approaches for Online Auctions
The Problem: The widespread shift to online auctions over the past five years has opened up property auctions to a much wider pool of buyers. However, many contract structures weren’t designed for digital platforms. This mismatch creates confusion about bidding procedures, technical requirements, and completion processes.
How New RICS Standards Fix It: The updated standards specifically address the evolving digital nature of property auctions. They provide clear frameworks for online bidding, digital document handling, and remote completion procedures. These reflect how auctions actually operate today.
This modernization ensures that whether you’re bidding from your kitchen table or attending in person, you have the same level of protection and clarity about the process. The standards also address technical issues like internet failures, bidding increments, and digital identity verification.
Mistake 7: Accepting Unbalanced Contract Terms
The Problem: Many auction contracts historically favored either the seller or the auctioneer. This left buyers with limited protection or recourse. This imbalance often became apparent only when problems arose. By then, it was too late to negotiate better terms.
How New RICS Standards Fix It: The new standards place greater emphasis on creating contracts that are more accessible, understandable, and balanced between all parties. This represents a significant shift toward consumer protection while maintaining the efficiency that makes auctions attractive to sellers.
The updated approach ensures that contracts protect legitimate interests on all sides rather than creating unfair advantages. This balance is particularly important as auctions attract more private buyers who may not have the same level of professional support as institutional investors.
Understanding the Broader Impact
The seventh edition of “Auctioneers Selling Real Estate” was also updated in 2024. This update brought auctions into line with all other RICS professional standards. This comprehensive overhaul represents the most significant modernization of auction contract standards in recent years. It addresses both technological changes and regulatory requirements that have evolved substantially.
These changes aren’t just bureaucratic updates – they represent a fundamental shift. The aim is to make property auctions more accessible and fair for everyone involved. Whether you’re a first-time auction participant or a seasoned investor, understanding these improvements can help you navigate the auction process more confidently and successfully.
Moving Forward With Confidence
The new RICS standards don’t eliminate the need for professional advice, but they do create a much clearer framework for understanding your rights and obligations. At Palace Auctions, we’re committed to implementing these standards fully, ensuring that every participant has access to clear, comprehensive information about their potential purchase.
By avoiding these seven common mistakes and understanding how the new standards protect you, you’re much better positioned to succeed in the competitive world of property auctions. The key is preparation – read the documentation thoroughly, ask questions when anything isn’t clear, and make sure you understand the complete financial picture before you raise your hand to bid.
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