Client Money Protection and Deposits
The monies paid to NALC by our clients is protected under
The Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019.
Any deposits which are received by NALC are ring fenced in our dedicated client account until the auction department accounts to the seller and the buyer.
What is the Deposit?
The deposit is the sum paid by the Buyer to the Seller on acceptance by the Auctioneer of the Buyer’s bid, as a guarantee that the Buyer will proceed to completion of their purchase.
If completion takes place without dispute, the sum becomes part payment of the purchase price.
At our online-only auctions, the deposit must be paid as follows:
- as to the bidder security, by preauthorised bank card payment or transfer and, as to any balance, by electronic bank transfer to our bank client account.
- We do not accept any other method of payment.
- The deposit will be taken and held by us as stakeholder unless we expressly agree with the Seller that it is to be taken as agent for the Seller. If this is the case, it will be stated in the addendum for the Lot.
Stakeholder or Agent – what does it mean?
- If the deposit is taken as stakeholder The stakeholder: · is effectively the agent of both Seller and Buyer in relation to the deposit · must not release the deposit until completion takes place.
- If NALC take the deposit as stakeholder, we will keep any interest earned during the time it or any part of it is held by us.
- If the deposit is to be taken as agent for the Seller The agent must: · act in the best interests of the Seller in relation to the deposit including account to the Seller for interest on the deposit · release the deposit to the Seller (or, if we choose, to the Seller’s solicitors) after the auction without further reference to the Buyer, whether or not the Buyer completes their purchase.
- A deposit taken as agent will, in effect, belong to the Seller as soon as it is paid to them although the Buyer may have a right to recover the deposit from the Seller if the Seller fails to complete.
- Any dispute regarding whom the deposit belongs to must be resolved between the Seller and the Buyer.
Stakeholder or Agent – which capacity applies?
- At NALC’s property auctions, the deposit will normally be taken by us as stakeholder.
- If we agree with the Seller that it is to be taken instead as agent, this will be stated in the addendum for the Lot.
If VAT is applicable to the property,
- The deposit will be taken as stakeholder in any event in order to avoid creating a VAT tax point on the date of contract.
When we take the deposit
- NALC’s procedures where the deposit is taken as stakeholder
- Where a deposit is paid to us as stakeholder we are at liberty, if we choose, to transfer all or part of it prior to completion to the Seller’s solicitors for them to hold as stakeholder in our place.
- Sometimes, the special conditions provide that we must do this. In all such cases, we will pass the deposit on after funds clearance, net of any fees and commission that will be due to us from the Seller on completion.
- Any part of the deposit not so transferred will continue to be held by us in our stakeholder account pending confirmation of completion of the sale and purchase.
- Where we hold as stakeholder up to the completion date for the sale and purchase of the Lot, we will release the deposit to the Seller’s solicitors on or very shortly after completion only upon receipt from the Seller’s solicitors of a letter requesting us to do so confirming that completion has taken place.
Please note At NALC our account departments almost always remit the balance of the deposit net of our fees to the vendors acting solicitor within 7 days of exchange of the auction contract.
- If completion is delayed for any reason, we will retain the deposit as stakeholder pending resolution of the delay.
- See below, under paragraph for what happens to the deposit in the event of delayed completion.
- Where NALC Auctions hold a stakeholder deposit and completion is delayed:
- It is not Auctioneers responsibility to decide which party is in breach of contract, or which party has caused delay. Consequently, in any of these circumstances, we cannot decide which party is entitled to have the deposit released to them.
- In such cases, we will only release the deposit with the express consent and authority of both the Seller and the Buyer. If for any reason mutual consent is not forthcoming, or if there is a protracted delay in the matter being resolved. Please be advised we may take legal proceedings which will involve asking the Court to hold the deposit pending a Court decision as to whom is entitled to have it. If proceedings are issued, we would usually seek costs against the party found to be in default.
- Procedures where the deposit is taken as agent After the auction, we will release the deposit, less all fees due to us, after 7 working days from the date on which the deposit was received in our client account.
- Release of the deposit will be without further reference to the Buyer, regardless of whether or not the Buyer completes the purchase of the Lot.
- Upon accounting out to both buyer and seller NALC Auctions then provide the sellers solicitor with a completion statement in readiness for completing the transaction or purchase. Which is always undertaken by acting independent solicitors.
Important notices pre-registration
Please note that charges and fees additional to the sale price might be payable by the successful buyer in respect of the lot please read the information contained below and check the special conditions of sale plus the particulars of sale and any addendum for the lot before deciding whether or not to bid.
Pre-registration approval to bid
All bidders who wish to bid need to register beforehand all checks required by current money laundering regulations must be satisfactorily completed as part of the process prior to NALC Auctions approving you to bid at our Auctions please use the links upon our website in order to fill in your pre-registration forms (hyperlink).
- Where a guide price or range of prices is given that guide price is the minimum price at which or range of prices within which the seller might be prepared to sell at on the date on which the guide price is published upon this website. The guide price will normally be at or above the reserve price. The guide price may be subject to change at any time up to and including the day of the auction the latest publish guide price or range of prices is displayed on our website and you are advised to check the website regularly for any updates alternatively you can of course call the office and speak to a member of our team on 01636 558200 for an update on the status of any particular property which you may be interested in.
- All guide prices are always quoted subject to the auction contract.
- Please note the guide price in the lot does not include any buyers fee charged by the auctioneers and the VAT on the sale price, any stamp duty land tax or any other taxes or additional fees which may be payable
- Additional costs and fees charged by the seller or third parties that might apply to some lots and also some buyers’ fees are not included within the guide price.
- if a guide price is listed to be advised that’s TBA it means no guide price has yet been set, should you be interested in this particular property please do not hesitate to call the office on 01636 558200 and the members of staff in the office will endeavor to give you the most up-to-date information.
6.The reserve price is the minimum price at which the vendor is prepared to sell the lot. Whilst every effort is made to ensure the advertised guide prices are up to date it is possible that the reserve price set for any lot may exceed the previously quoted guide price this is because our sellers do not fix their final reserve until just before the lot is offered for sale at the auction itself.
Buyers and sellers’ fees and additional charges
- For each lot a buyer’s fee is payable on the fall of the Hammer.
- NALC Auctions Ltd charge the following amounts for a residential auction. A buyers premium is chargeable in all cases subject to a minimum of £3,600 plus vat in addition All lots £650 plus the VAT
- For our chattels and machinery and equipment auctions a minimum of 10% buyer’s premium on the hammer price will be charged.
- Sellers fees and additional charges might be charged by the seller and all other parties. You are strongly advised to read the special conditions of sale for the lot prior to bidding and check any additional charges and fees and to check the addendum. The addendum may but does not always contain details of any such amounts.
- Some lots (commercial property) VAT may be chargeable in addition to the sale price of the lot. The lot particulars and all the special conditions will explain whether VAT is chargeable or not.
- Other matters. Please note that lots may be sold or withdrawn at any time prior to the auction.
- Please note that the amount of security (deposit payable) per lot is variable and must be agreed with the auction department prior to bidding please refer to the addendum and the particulars and conditions of sale which will normally state the guide price and required deposit or bigger security deposit. The required deposit will normally be 10% plus any buyer’s premium
- Plans are reproduced with the consent of promap and ordnance Survey and are licensed by HM stationery office
- Plans and photographs shown in the catalogue and on this website are included in order to assist you in locating the lot in question. They are not necessarily drawn to scale and any arrows on plans or photographs are merely there to assist you in finding the lot itself and not for the purposes of indicating the legal boundary; especially when referring to Land Registry plans.
In this regard the auctioneers cannot guarantee that any plans or photographs showing up-to-date position with regard to boundaries or occupiers either of the lot or for the property shown in such plans or photographs.
Registered with HMRC for supervision under the Money Laundering Regulations. Reg No:XQML00000159968
NALC Auctions Anti Money Laundering registration no. XQML00000159968. Supervised to 30th April 2022