GENERAL CONDITIONS OF SALE APPLICABLE TO ALL LOTS
The Cyprus Common Auction Conditions are based upon the Common Auction Conditions (Edition 1) produced by the Royal Institution of Chartered Surveyors and adapted to comply with Cyprus law and practice.
They have three main sections:
GLOSSARY
This gives special meanings to some words used in the rest of the Conditions.
THE CONDUCT OF THE AUCTION
These Conditions regulate the conduct of the Auction. If you read our Catalogue or attend
the Auction you do so on the basis that you accept them.
CONDITIONS OF SALE
If you buy a lot you will sign a Contract of Sale under which you agree to be bound by the
Conditions of sale that apply to that Lot.
These conditions are:
General Conditions that apply to all Lots
Any Extra general Conditions in the Catalogue or an Addendum
Special Conditions that only apply to the Lot you are buying (and which may vary the general conditions)
The Conditions are legally binding.
GLOSSARY
In the Conditions wherever it makes sense singular words can be read as plurals and plurals as singular words.
A ‘person’ includes a corporate body, Words of one gender include other genders.
Where the following words appear in small capitals they have the specified meanings.
Addendum
An amendment or addition to the Conditions whether contained in a supplement to the
Catalogue, a written notice from the Auctioneers or an oral announcement at theauction.
Approved Bank
A Cyprus clearing bank.
Auction
The Auction advertised in the Catalogue.
Auctioneers
The Auctioneers at the Auction.
Buyer - Purchaser
The person who agrees to buy the Lot or, if applicable that person’s personal representatives:
If two or more are jointly the buyer all obligations can be enforced against them jointly or against each of them separately.
Catalogue
The Catalogue to which the Conditions refer including any supplement to it.
Completion to Buy
The date when the contract is signed, normally the same date as the Auction.
Completion to Take Possession
The date the full balance of the purchase Price is paid, normally within 28 days of the Auction date.
Completion to Transfer
The date the Title Deeds are transferred to the Buyer.
Conditions
This glossary, the Conditions for the conduct of the Auction, the general Conditions,any Extra Conditions and the special Conditions.
Contract of Sale
The contract by which the Seller agrees to sell and the Buyer agrees to buy the Lot to be used where the Seller is named on the individual Title Deeds.
Contract Date
The date of the Auction or, if the Lot is unsold at the Auction,
a) the date the Contract of Sale is signed by both the Seller and Buyer or
b) if contracts are signed, the date of signing.
Documents
Documents of Title Deeds (including, if Title Deed is held by the Seller or the developer and is registered, the entries at the District Lands’ Office) and other Documents listed of referred to in the special Conditions relating to the Lot.
Extra Conditions
Any additions to or variations of the Conditions that are of general application to all Lots.
Interest Rate
If not specified in the special conditions, 4% above the base rate from time to time of Bank of Cyprus.
Lot
Each separate Lot described in the Catalogue or (as the case may be) the Lot that the Seller has agreed to sell and the Buyer to buy.
Particulars
The section of the Catalogue that contains descriptions of each Lot.
Preliminary Contract of Sale
The contract by which the Seller agrees to sell and the Buyer agrees to buy the Lot to be used where the Seller is not named on the individual Title Deed.
Price
The Price that the Buyer agrees to pay for the Lot.
Seller
The person selling the Lot.
VAT
Value Added Tax or other tax of a similar nature.
VAT Election
An election to waive exemption from VAT in respect of the Lot.
We (and us and our)
The Auctioneers.
You (and Your)
Someone who has a copy of the Catalogue or who attends or bids at the Auction, whether or not a Buyer.
THE CONDUCT OF THE AUCTION
The Catalogue is issued only on the basis that you accept these Conditions relating to the conduct of the Auction. They override all other Conditions and can only be varied if we agree.
Our role
As auctioneering agents for each Seller we have authority to
• Prepare the Catalogue from information supplied by or on behalf of each Seller
• Offer each Lot for sale
• Sell each Lot
• Receive and hold deposits
• Sign each Contract of Sale
• Treat a contract as repudiated if the Buyer fails to sign a Contract of Sale or pay a deposit as required by the Conditions.
Our decision on the conduct of the Auction is final.
We may cancel the Auction, withdraw Lots from sale, or alter the order in which Lots are offered for sale. We may also combine or divide Lots.
You acknowledge that to the extent permitted by law we owe you no duty of care and you have no claim against us for any loss.
Bidding and reserve price
We may refuse to accept a bid. WE do not have to explain why.
If there is a dispute over bidding we are entitled to resolve it and our decision is final.
Unless stated otherwise each Lot is subject to a reserve Price. If no bid equals or exceeds that reserve Price the Lot will be withdrawn from the Auction. The Seller may bid up to the reserve Price but may not make a bid equal to or exceeding the reserve Price.
Where a guide Price is given that Price is not to be taken as an indication of the value of the Lot or of the reserve Price.
The Particulars and other information
We have taken reasonable care to prepare Particulars that correctly describe each Lot. However the Particulars are based on information supplied by or on your behalf of the Seller and we are not responsible for errors.
The Particulars are for your information but you must not rely on them. They do not form part of any contract between the Seller and the Buyer.
If we provide any information or a copy of any document we do so only on the basis that we are not responsible for its accuracy.
The Contract of Sale
A successful bid is one we accept as such.
If you make a successful bid for a Lot you are obliged to buy that Lot on the terms of the Contract of Sale. The Price will be the amount you bid plus VAT (if applicable).
You must before leaving the Auction
• Provide all information we reasonably need from you to enable us to complete the Contract of Sale or the Preliminary Contract of Sale including appropriate proof of identity.
• Sign the completed Contract of Sale or the Preliminary Contract of Sale.
• Pay the deposit.
And if you do not we may either:
• As agents for the Seller treat that failure as you repudiation of the contract and offer the Lot for sale again: the Seller may then have a claim against you for breach of contract: or Sign the Contract of Sale or the Preliminary Contract of Sale on your Behalf.
Deposits must be paid by cheque or by bankers’ draft drawn on an approved bank in our favour.
The Catalogue states whether we also accept cash, or debit or credit cards.
We may retain the Contract of Sale signed by or on behalf of the Seller until we receive the deposit in cleared funds.
If you make a successful bid for a Lot
• You are personally liable to buy it even if you are acting as an agent. It is your responsibility to obtain an indemnity from the person for whom you are the agent:
• Where the Buyer is a company you warrant that the Buyer is properly constituted and able to buy the Lot.
• If the Buyer does not comply with it’s obligations under the contract you are personally liable to buy the Lot and must indemnify the Seller in respect of any loss the Seller incurs as a result of the Buyer’s default.
CONDITIONS OF SALE
The General Conditions apply except to the extent that they are varied by the Extra Conditions, the Special Conditions or by an Addendum.
1. The Lot
1.1 The Lot, including any rights granted and reserved, is described in the Special Conditions.
1.2 The Lot is sold subject to any tenancies disclosed by the Special Conditions, but otherwise with vacant possession on completion.
1.3 The Lot is sold subject to all matters contained or referred to in the Documents and to such of the following as may affect it, whether they arise before or after the Contract date and whether or not they are disclosed by the Seller or are apparent from inspection of the Lot or the Documents.
1.3.1 Matters registered or capable of registration as local land charges.
1.3.2 Matters registered or capable of registration by any competent authority or under the provisions of any statute.
1.3.3 Notices, orders, demands, proposals and requirements of any competent authority.
1.3.4 Charges, notices, orders, restrictions, agreements and other matters relating to town planning, highways or public health.
1.3.5 Outgoings and other liabilities.
1.3.6 Matters that ought to be disclosed by the searches and enquiries a prudent Buyer would make, whether or not the Buyer has made them.
1.3.7 Anything the Seller does not and could not reasonably know about and where any such matter would expose the Seller to liability the Buyer is to comply with it and indemnify the Seller against liability.
1.4 The Seller must notify the Buyer of any notices, orders, demands, proposals and requirements of any competent authority of which it learns after the Contract Date but the Buyer is to comply with them and must indemnify the Seller if it does not.
1.5 The Lot does not include any tenant’s or trade fixtures or fittings.
1.6 Where chattels are included in the Lot the Buyer takes them as they are at completion and the Seller is not liable if they are not fit for use.
1.7 The Buyer buys with the full knowledge of
a) The Documents whether or not the Buyer has read them
b) The physical condition of the Lot and what could reasonably be discovered on inspection of it, whether or not the Buyer has inspected it.
1.8 The Buyer is not relying on the information contained in the Particulars or in any replies to Preliminary enquires but on the Buyers own verification of that information. If any information is not correct any liability of the Seller and any remedy of the Buyer are excluded to the extent permitted by statute.
2. Deposit
2.1 The amount of the deposit is greater of
a) €3,500 (or the total Price is less than €3,500 exclusive of VAT
b) 15% of the price exclusive of VAT
2.2 The deposit must be paid to the Auctioneers by cheque or banker’s draft drawn on an Approved Bank.
2.3 Where the Auctioneers hold the deposit as stakeholders they are authorised to release it and any interest on it to the Seller on completion or, if completion does not take place to the person entitled to it under the Conditions.
2.4 If for any reason the deposit is not received by the Auctioneers in cleared funds within five business days of the Contract Date the Seller is entitled to treat the contract as at an end and bring a claim against the Buyer for breach of contract.
2.5 Interest earned on the deposit belongs to the Seller unless the Conditions provide otherwise.
3. Transfer of risk and insurance
3.1 From the Contract Date the Seller is under no obligation to insure the Lot and the Buyer bears all risks of loss or damages unless;
a) The Lot is sold subject to tenancy which requires the Seller to insure the Lot or
b) The Special Conditions require the Seller to insure the Lot.
3.2 Unless the Buyer is already lawfully in occupation of the Lot the Buyer has no right to enter into occupation prior to Completion to Take Possession.
4. Title Deed & Ownership
4.1 The Seller must provide a copy of The Title Deed or in the case the Seller is not the registered owner, provide a copy of the following:
a) The Sales Contract
b) Architect Plans
c) Planning Permission
d) Building Permission
4.2 There should be two types of sale
4.2.1 The sale of a property for which is a separate individual Title Deed exists. The Buyer and the Seller will sign a final and binding contract (The Contract of Sale) which will commit both parties on;
a) The property to be sold (the Lot)
b) The Seller
c) The Buyer
d) The sale Price
e) The terms of Payment
4.2.2 The sale of a property for which no individual separate Title Deed exists and the property forms part of a development to be built, completed and sub-divided. The Buyer and the Seller will commit on a Preliminary basis by both parties signing a Preliminary Contract of Sale Agreement which shall cover the following;
a) The property to be Sold (the Lot)
b) The sale Price
c) Time required for the existing contract cancellation and the subsequent new contract to be signed
d) The delivery date
5. Preliminary Contract of Sale Terms
5.1 The Special Terms in the contract will state
5.1.1 The Contract Date and developer under which they have legal right of possession and the right to dispose of such a possession through a new Contract of Sale with the registered owners.
5.1.2 The cost of such a procedure will be paid by the Vendor.
5.1.3 The vendors undertake to have their said Contract of Sale cancelled and a new contract to be signed with the purchaser.
5.1.4 Any taxes as form the date of delivery will be the responsibility of the purchasers.
5.1.5 IN the event that the purchaser fails to meet the obligations under the contract on the agreed time and provided the vendor is ready to execute theirs, then the deposit paid in virtue of this agreement will be kept as non-refundable and this agreement will be considered null and void.
5.1.6 In the event that the contract between the developer and the vendor can not be signed by the agreed time the vendor will have to refund the deposit to the purchaser with 5% interest as from the date of the payment.
5.1.7 The vendor will provide the purchaser’s solicitor with copies of the tax clearance certificates for any capital gains tax liability. In addition supply electric and water bills to enable the purchaser to connect these utilities in the purchaser’ name, as from the date of delivery.
6. Contract of Sale Terms
6.1 The Special Terms in the contract will state
6.1.1 The property is free of any impediments and the agreement may be lodged with the Land Registry Office.
6.1.2 Any taxes from the date of delivery will be the responsibility of the purchaser.
6.1.3 The vendor will provide the purchaser’s solicitor with copies of the tax clearance certificates showing that there is no tax liability at the stage of signing the contract. In this respect the purchaser’s solicitor will supply the vendor’s solicitor with a copy of the stamped agreement.
6.1.4 Any dispute between the parties of this agreement should be resolved under The Laws of Cyprus and the relevant District Court will have exclusive jurisdiction.
6.1.5 The purchaser will have the right to sell the property to any third party and the vendor will have to consent to a new agreement to be signed between him and the new Buyers, provided that the new contract will be under the Terms and Conditions.
7. Completion
7.1 Completion stages will take place as follows
7.1.1 Completion to Buy – Occurs when contracts are signed, usually on the day of the Auction
7.1.2 Completion to Take Possession – Occurs when the full purchase Price is paid, usually 28 days after Completion to Buy
7.1.3 Completion of Transfer – Occurs when the Title Deeds are transferred into the name of the Buyer, when the Buyer obtains the permits from the Cypriot authorities, at a time in the future determined by the availability of the Title Deeds.
8. VAT
8.1 Where the Conditions require money to be paid the payer must also pay any VAT that is chargeable on that money, but only if given a valid VAT invoice.
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