Property Auction Deposits at Palace Auctions London
Welcome to our comprehensive guide on property auction deposits. As a trusted London auction house, we believe in complete transparency about our deposit procedures to ensure a smooth transaction for all our buyers.[H2] Understanding Auction Deposits.
A property auction deposit is your commitment to proceed with the purchase of an auctioned property. At Palace Auctions London, we maintain strict procedures to protect both buyers and sellers throughout the transaction process.[H3] Deposit Amount Requirements
- Deposits range between 10-15% of the sale price
- Minimum deposit amount of £2,000
- Additional buyer’s premium applies (minimum £4,000+VAT)
- Buyer’s premium is non-refundable under all circumstances
Deposit Payment Procedures
When to Pay Your Deposit : The deposit and buyer’s premium must be paid immediately upon signing the Memorandum of Sale. This applies to all sales, whether they occur:
- During the live auction
- Pre-auction
- Post-auction
Accepted Payment Methods We maintain strict payment protocols to ensure security:
- Pre-authorized bank card payments for bidder security
- Electronic bank transfers to our client account
- No alternative payment methods are accepted
How We Handle Your Deposit
Stakeholder Capacity In most cases, Palace Auctions London acts as a stakeholder for your deposit, meaning:
- We serve as an agent for both buyer and seller
- The deposit is held securely until completion
- Any earned interest is retained by Palace Auctions
- Funds are only released upon completion
Agent Capacity In specific cases, we may act as an agent for the seller:
- This will be clearly stated in the lot’s addendum
- The deposit may be released to the seller without buyer reference
- We prioritize the seller’s interests regarding the deposit
- VAT-applicable properties always use stakeholder capacity
Important Deposit Terms
Completion and Transfer
- Standard completion occurs within 28 days of signing
- Deposits may be transferred to seller’s solicitors before completion
- Release requires confirmation from seller’s solicitors
- Special conditions may apply (detailed in the Legal Pack)
Deposit Disputes If completion is delayed:
- Palace Auctions remains neutral in disputes
- Release requires consent from both parties
- Legal proceedings may be necessary
- Court decisions determine deposit allocation
- Defaulting party bears legal costs
Excess Deposit Payments: Should you accidentally overpay your deposit:
- Excess amounts will be returned promptly
- Refunds processed once funds clear
- Returns made via bank transfer
- Alternative arrangements through your solicitor possible
For more information about our auction procedures or to register for our next auction, contact Palace Auctions London today. Our experienced team is here to guide you through every step of the process.
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