BEAUTIFUL BACHELOR FLAT


DISCLAIMER
IMMOVABLE PROPERTY – NOTICE TO BUYERS


• Subject to 21 days confirmation period by seller
• 10 % deposit on purchase price by electronic transfer
• Guarantees for balance within 30 days from date of acceptance
• Purchaser is liable for all outstanding rates and taxes and levies.

DISCLAIMER

The information supplied in this document has been sourced from various instructions. Tirhani Auctioneers does not guarantee the correctness thereof; the information is supplied in good faith and for the information purposes only.

PROPERTY DESCRIPTION
The property is in a three-storey building with the floor area of 33 m2, Spacious Bachelor apartment right next to Potchefstroom Boys High School. The Complex is well taken care of and has a 24hour security and which includes the following features:

Open Bachelor flat with Lounge
Kitchen with build-in cupboards
Shower with Toilet
Communal swimming pool and braai area
1 Carpot
Prepaid electricity

Property ID: 31101
Auction Date: 15/10/2018 at 14:00 SAST
View Date:
Venue: Unit 112 Tramonto, 77 Beyers Naude Avenue, Potchefstroom, 25 2520, ZA

RULES OF AUCTION

A. DEFINITIONS
For purposes of clarity, the following definitions are applicable to these rules of auction:
“asset” means any asset of value; movable or immovable. “Goods” has the same meaning as “asset”.
“bid” means a bidder's offer to buy goods/property at an auction, indicated by any sign (raise of a hand,
nodding, winking, etc.) to the auctioneer or his/her assistants, or any other communicable gesture. Bids
are usually in standardized increments established in agreement between the auctioneer and bidders.
“bid assistants” means individuals of at a live auction team also known as “ringmen”, “bid spotters” or
“groundsmen” whose primary responsibility is to assist both the auctioneer and bidders by accurately
interpreting and effectively communicating bidders’ participation to the auctioneer during an auction.
They are also qualified to assist prospective bidders with the necessary information to make informed
buying decisions.
“bid calling” means the process an auctioneer uses to conduct a live auction by calling bids using the outcry method
through verbal exchanges and physical gestures between the auctioneer and bidders; which
exchanges and gestures consist of a series of invitations for offers made by the auctioneer and bids
made by bidders culminating in the establishment of the “hammer price”, and the sale of the
goods/property to the highest bidder. “Bidding” has the same meaning as “bid calling”.
“bid rigging” means the unlawful practice whereby two or more bidders connive and agree not to bid against each
another at an auction or intimidate other bidders with the intention to supress the prices of
goods/property on auction. “Collusion” has the same meaning as “bid rigging”.
“bidder” means a person, natural or juristic, who has registered to purchase at an auction sale.
“bidder’s choice” means a method whereby the auctioneer offers bidders the option to bid for multiple lots or units/items
with similar goods/property on a ‘price per lot or per unit/item’ basis, with the highest bidder having
the choice to select one, multiple or all the lots or units/items at the bid price per lot or per unit/item
multiplied by the number of lots or units/items in the particular lot. “Buyer’s choice” has the same
meaning as “bidder’s choice.
“buyer” means the bidder who is the highest bidder on goods/property or lots offered on auction at the fall of
the hammer. “Purchaser” has the same meaning as “buyer”.
“confirmation period” means the period during which a seller must either confirm or reject an offer made by the highest bidder
after the completion of an auction but falling short of the reserve price. The highest bidder is bound by
the Rules of Auction and shall not have the opportunity to withdraw his/her offer until the seller has
confirmed the sale, or the predetermined confirmation period has expired.
“ghost bidding” means an auction where sellers use memberships of people they know, or fake memberships they
have created, to put false bids on auctions to increase the price of goods/property they are selling.
“hammer price” means the price established by the highest bidder and accepted by the auctioneer before dropping the
hammer/gavel or announcing the close of the auction by any other customary means.
“lot” means any unit/item or group of units/items of goods/property identified and listed for sale on auction.
“online auction” means a competitive real-time auction conducted by rising bid on an Internet based platform.
“owner” means a natural or juristic person who is the rightful owner of the assets, and who has the right to sell
the assets, including that person’s successors and assigns and an agent of that person.
“parties” means the seller and purchaser.
“property” means land, improvements, fittings and fixtures with regards to immovable assets or means all loose
assets with regards to movable property.
“rules of auction” means the general rules of auction, the specific terms and conditions, notice to bidders, auctioneer’s
announcements and offer to purchase (in the event of immovable property); severally or collectively.
“reserve price” means the minimum price that a seller is willing to accept for goods/property to be sold at auction.
“seller” means a natural or juristic person who has the right to sell assets on auction, and effectively signs the
mandate to sell the goods/property but is not necessarily the owner or rightful holder.
“vendor bidding” means an auction where the owner or auctioneer, or any person on behalf of the owner or auctioneer
bids at the auction with the intention to protect the reserve price. For vendor bidding to be legal and
not become “ghost bidding”, it must be practiced up to the reserve price but not equal to or exceeding
the reserve price.
B. COMPLIANCE
i. These Rules of Auction comply with Section 45 [sub-sections 1-5] of the Consumer Protection Act (CPA), No. 68 of 2008
and Regulations 18-33 contained therein applicable to auctions. An extract of section 45 of the Act appears below:
Section 45 [ss 1-5]: Auctions
(1) In this section, ‘‘auction’’ includes a sale in execution of or pursuant to a court order, to the extent that the order
contemplates that the sale is to be conducted by an auction.
(2) When goods/property are put up for sale by auction in lots, each lot is, unless there is evidence to the contrary, regarded
to be the subject of a separate transaction.
(3) A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in any other
customary manner, and until that announcement is made, a bid may be retracted.
(4) Notice must be given in advance that a sale by auction is subject to; (a) a reserved or upset price, or (b) a right to bid
by or on behalf of the owner or auctioneer, in which case the owner or auctioneer, or any one person on behalf of the
owner or auctioneer, as the case may be, may bid at the auction.
(5) Unless notice is given in advance that a sale by auction is subject to a right to bid by or on behalf of the owner or
auctioneer; (a) the owner or auctioneer must not bid or employ any person to bid at the sale, (b) the auctioneer must
not knowingly accept any bid from a person contemplated in paragraph (a), and (c) the consumer may approach a
court to declare the transaction fraudulent, if this subsection has been violated.
ii. These Rules of Auction meet the requirements of regulation 21 of the CPA and have been signed by the auctioneer
conducting the auction.
RULES OF AUCTION
Initial Here
C. ACKNOWLEDGEMENT
i. These Rules of Auction, including the general rules, specific terms and conditions, notice to bidders, offer to purchase and
all announcements made by the auctioneer at the commencement and during the course of the auction, whether or not the
bidder is present at the time such announcements are made, collectively referred to as the "Rules of Auction" are the
complete and final record of the rules of governing an auction and unless any warranties, undertakings or representations
are set out herein, they are excluded.
ii. These Rules of Auction in their entirety shall form the basis of the bidding and bargaining carried out between the auctioneer
and the bidders and shall also govern the rules of each sale so concluded.
iii. In the event of a contradiction between the General Rules of Auction and the Specific Terms and Conditions, the Specific
Terms and Conditions will take precedence.
iv. As per sub-regulation 21 (8) (a), the Rules of Auction need not be read out at the auction to be valid, as long as they were
made available to the general public prior to the commencement of the auction (at least 24 hours for movable assets, and
at least five (5) working days for immovable assets), either in printed format from the auctioneer's place of business or
electronically from the auctioneer's website.
v. The act of not reading the Rules of Auction in their entirety and highlighting selected clauses for special mention at the
auction should in no way be construed as an omission or admission that the Rules of Auction are not important.
vi. The act of registering for the auction signing the bidders' record and participation by any bidder in the auction shall be taken
as confirmation that the bidder has read, understood, accepts and is bound by the Rules of Auction.
vii. The auction and all matters connected with the auction including the Rules of Auction are governed by and constructed in
accordance with the laws of the Republic of South Africa and the bidder, including foreign bidders consent to the jurisdiction
of the South African courts.
viii. For purposes of legal proceedings, the bidder shall be deemed to have selected and appointed as his or her domicilium
citandi et executandi the address recorded by him or her on the bidder’s record upon registration.
ix. The auctioneer shall be entitled to institute legal proceedings at any Magistrates Court having jurisdiction against the
purchaser to recover the settlement contemplated in clauses 4.3 and 4.4 herein, and any legal costs, disbursements and
charges calculated on the basis of an Attorney and own client scale.
D. GENERAL RULES OF AUCTION
1. MANDATORY INFORMATION REQUIRED BY THE CPA AND REGULATIONS
1.1. The auction must be advertised in compliance with regulations 19 and 20 of the CPA, and the advertisement must be
placed in such a manner that the general public has had a reasonable opportunity to become aware of the auction, the
goods/property on offer and the rules governing the auction.
1.2. As per section 45(2) of the CPA, when goods/property are put up for sale by auction in lots, each lot is, unless there is
evidence to the contrary, regarded to be the subject of a separate transaction.
1.3. The auction will commence at the published time and it will not be delayed to enable any specific person or more persons
in general to take part in the auction.
1.4. As per sub-regulation 26(2) of the CPA, every prospective bidder must, prior to the commencement of an auction, register
his or her identity in the bidders' record', providing his or her positive identification, juristic registration documents, and proof
of residence in terms of the Financial Intelligence Centre Act (FICA), No. 31 of 2001 published in Notice R1595 in Gazette
24176 of 20 December 2002.
1.5. As per sub-regulation 26(3) of the CPA, if a person intends to bid on behalf of another person or entity, he or she must
produce a letter of authority expressly authorising him or her to bid on behalf of that person, and both that person and the
person bidding on his or her behalf must meet the requirements of sub-regulation 26(2) of the CPA outlined in clause 1.4
herein. A draft letter of authority is provided herewith marked Annexure A.
1.6. As per sub-regulation 26(4) of the CPA, if a person described in clause 1.5 above intends to bid on behalf of a company,
the letter of authority contemplated therein must appear on the letterhead of the company and must be accompanied by a
certified copy of the resolution authorising him or her to do so.
1.7. As per sub-regulation 28(1) of the CPA, all prospective bidders whose names appear in the bidders' record will be issued
with visible bidder numbers.
1.8. As per sub-regulation 26(5) of the CPA, the bidders' record will be available for public inspection in respect of the names
of bidders and bidder’s numbers only free of charge, at any time, before and after the auction at the auctioneer's place of
business during normal business hours or during the auction at the premises where the auction is being held.
1.9. As per sub-regulation 28(4) of the CPA, the auctioneer will keep a vendor's roll in which all details prescribed therein will
be recorded. The vendor’s roll will be available for public inspection, at any time, free of charge.
1.10. As per sub-regulation 21(2)(h) of the CPA, the auctioneer has trust accounts into which all monies are paid for the benefit
of the seller, minus the agreed commission and costs.
2. ADMISSION AND REGISTRATION
2.1. The right of admission is reserved. All persons, including buyers, enter the auction venue at their own risk. The auctioneer,
the seller, their agents and employees shall not be liable for any injuries, damages or losses of any nature whatsoever
arising from any person’s attendance and/or participation in the auction. All persons together with their heirs, executors,
administrators or assigns, hereby release the auctioneer, the seller, their agents and their employees and hold them
harmless from any duty of care towards them and all claims which may otherwise have accrued to them whether or not
any such claim may arise through the negligence of any person or from any of the risks, dangers or hazards occurring in
the course of their association with the auctioneer and the seller.
2.2. During registration as contemplated in clause 1.4 of these Rules of Auction, prospective bidders may be required to pay a
refundable deposit determined by the auctioneers from time to time.
2.3. All refundable deposits will be refunded only once the deposit reflects in the auctioneer’s trust account and only if the bidder
was unsuccessful in purchasing any items.
2.4. All deposits and other monies belonging to bidders and sellers will be held by the auctioneer as per section 65(2) of the
CPA, which requires suppliers to hold and account for consumers' assets in their possession, including any prepayment,
deposit, membership fee, or other money, or any other assets belonging to or ordinarily under the control of a consumer.
2.5. The auctioneer reserves the right to revoke a bidder’s number at any time during the auction in terms of sub-regulation
28(3) of the CPA, thereby refusing a person the right to remain on the auction premises in the event that such a person
repeatedly behaves in such a way so as to disrupt the auction.
RULES OF AUCTION
Initial Here
3. GENERAL AUCTION PROCEDURES
3.1. The auctioneer conducts the auction as an agent on behalf of the seller and accepts no liability whatsoever. In the event
of any disputes, the purchaser shall only have a claim against the seller, unless such disputes are because of the
auctioneer's negligence or conduct.
3.2. The control of the auction shall be entirely managed by the auctioneer, who has the sole right to regulate the bidding
process and control the bid increments. The auction will be conducted per rising bid in South African rands.
3.3. The auctioneer may only sell to bidders registered in terms of clauses 1.4 and 1.7 herein. No bid will be taken from
unregistered persons without bidder numbers as per sub-regulations 24(h) and 28(2) of the CPA.
3.4. A dully registered bidder is entitled to use “absentee or commission bidding” whereby the bidder participates in the
auction in absentia, either by authorising the auctioneer to bid on his or her behalf up to a predetermined amount or by
bidding telephonically through one of the auctioneer’s assistants. Absentee/commission bidders must fulfil all the
registration requirements of the auction in order to participate. Tirhani Auctioneers practices absentee/ commission bidding
transparently, including announcing the amount of commission bids to bidders after the hammer price is established.
3.5. In terms of section 55(1) of the CPA, goods/property are sold “voetstoots”, as is, where is in their present condition, with
no express or implied guarantees or warranties regarding the condition and fitness of the goods/property for a particular
use. Buyers bid at their own risk and are advised to inspect the goods/property on offer prior to the commencement of the
auction in accordance with sub-regulation 28(5) of the CPA. Participation in the auction shall be taken as proof that the
bidder has acquainted himself or herself with the condition of the goods/property.
3.6. In the event of an auction subject to a reserved or upset price, and provided notice has been given in advance in terms of
section 45(4) of the CPA, the seller or the auctioneer, or any other person on behalf of the seller, or the auctioneer, as the
case may be, may bid at the auction up to the reserve price but not equal to or exceeding the reserve price.
3.7. In the event of an absolute or auction without reserve, the auction will be conducted in accordance with the provisions of
sub-regulation 20(18) and (19) of the CPA. In particular, goods/property will not be offered or sold at an absolute or auction
without reserve unless there is a bona fide intention at the time of the advertising and at the time of the auction to sell the
goods/property and transfer ownership of the goods/property, regardless of the amount of the highest and last bid, to the
highest bidder, without any requirement for a minimum bid, and without allowing competing bids of any type by the seller,
or any agent of the seller. In addition, the seller of the goods/property cannot withdraw the goods/property from auction
after the auction is opened and there is public solicitation or calling for bids at an absolute or auction without reserve.
3.8. Notwithstanding the provisions of clause 3.7 herein, a secured party or other lien holder or any party who is not the seller
is not prohibited from bidding at an auction without reserve, provided such bidding does not constitute, nor is tantamount
to the direct or indirect establishment or agreement to the establishment of a reserve price on the goods/property by the
seller, or the auctioneer, or anyone aiding or assisting, or acting on behalf of the seller, or the auctioneer.
3.9. As per sub-regulation 20 (19) (d) of the CPA, certain goods/property may be offered with reserve and others offered
absolute or without reserve at the same auction and at the same time, provided non-misleading advertisement makes it
clear, through appropriate emphasis, which goods/property are being offered by either method.
3.10. Bidders must direct their bids to the auctioneer or official bid assistants. The practice of bid rigging as defined in the Rules
of Auction are prohibited and may be treated as per clause 2.5 of “Admission and Registration” herein.
3.11. Notwithstanding the provisions of sub-regulation 24(h) of the CPA, goods/property or lots may be grouped or divided with
the unanimous consent of all buyers.
3.12. Bidders may also be offered the option of exercising “bidder or buyer’s choice”, by bidding for multiple lots or units/items
with similar goods/property on a ‘price per lot or per unit/item’ basis, with the highest bidder having the choice to select
one, multiple or all the lots or units/items at the bid price per lot or per unit/item multiplied by the number of lots or units/items
in the particular lot.
3.13. Every bid shall constitute a firm offer to purchase the goods/property or lots on offer for the amount bid.
3.14. Notwithstanding the provisions of clause 3.13 herein, the bidder is permitted, in terms of section 45(3) of the CPA, to retract
his or her bid before the hammer falls or the auctioneer concludes bidding in any customary manner.
3.15. In accordance with sub-regulation 28(6) of the CPA, subject to any reserved price and the acceptance of the highest bid
by the owner or the seller, the highest bidder, when the auctioneer announces the completion of the sale by the fall of the
hammer, or any other customary manner, is the purchaser of the goods/property or lots on auction. Should any dispute
arise between two or more bidders regarding the identity of the highest bidder and purchaser, the auctioneer shall use his
or her discretion to resolve the dispute, including declare the buyer, re-auctioning the disputed lot or lots or even
withdrawing the lot or lots. The decision of the auctioneer shall be final and binding.
3.16. Notwithstanding the provisions of clause 3.15 herein, and subject to the provisions of clause 3.6 herein, the owner or the
seller, reserves the ultimate right, apart from the auctioneer, to fix a minimum bid for acceptance and to decline to sell to
the highest or any bidder, or even to accept any lower bid, without giving any reasons.
3.17. The auctioneer, with the approval of the owner or the seller, reserves the right, at any time, to stop the auction, to reject
any or all bids and to withdraw any goods/property or lots or part thereof from the auction, either before or during the
auction, without giving any reasons and without attracting any liability for such action.
3.18. The auctioneer, with the approval of the owner or the seller, reserves the right, at any time, to stop the auction, to reject
any or all bids and to withdraw any goods/property or lots or part thereof from the auction, either before or during the
auction, without giving any reasons and without attracting any liability for such action.
3.19. Once the reserve price determined by the seller is reached, the auction becomes absolute, and the auctioneer is authorised
to sell to the highest bidder at the fall of the hammer or any customary method used by the auctioneer to close the auction.
3.20. Should the reserve price not be met in terms of regulation 28(6), the auctioneer will either announce that the goods/property
are unsold or knock the goods/property to the highest bidder provisionally subject to confirmation (STC) by the seller, and
only the highest bidder will be entitled to negotiate with the auctioneer and the seller for the final purchase of the
goods/property. If the negotiations do not result in the sale of the goods/property, such goods/property will remain unsold.
No negotiations will be entertained with other bidders, unless the seller instructs otherwise.
3.21. Goods/property or lots knocked provisionally to the highest bidder subject to approval by the seller in terms of clause 3.21
herein are deemed not to have been sold in terms of section 45(3) and sub-regulation 28(6) of the CPA until the seller has
confirmed the offer. However, the highest bidder is bound by the Rules of Auction and shall not have the opportunity to
withdraw his bid until the seller has confirmed the sale or the stipulated confirmation period has expired. Negotiations
between the highest bidder and the seller may arise during the confirmation period.
RULES OF AUCTION
Initial Here
3.22. Should the seller decide to entertain subsequent bids during the confirmation period, such higher offers must be made to
the auctioneer on the same terms and conditions applicable to the auction. Subsequent bidders will have only one
opportunity to submit higher offers. The highest bidder of the first instance shall have the sole right of refusal to equal or
better subsequent offers, on condition that the right to counter is exercised within 24 hours (excluding public holidays and
weekends) after notification by the auctioneer.
3.23. In the event of an auction sale requiring the consent of any statutory authority or any Court of Law, then the conclusion of
the auction sale is subject to the granting of such consent.
3.24. Buyers are not permitted to enter into any transaction on the seller’s premises. In particular, the re-auctioning of
goods/property by bidders is prohibited within the premises of the auctioneer or the seller.
4. FINANCIAL ARRANGEMENTS
4.1. Once goods/property or lots have been sold to the purchaser as contemplated in clause 3.155 herein, the sale of the
goods/property or lots is irrevocable and cannot be withdrawn, and the purchaser shall be liable for the settlement of such
purchases, and hereby binds himself or herself as surety and principal debtor, subject to the provisions of clauses 1.5 and
1.6 herein, failing which the auctioneer, the seller or the owner, reserves the right to demand payment to recover the amount
owing, including any interest, legal costs and collection costs thereof.
4.2. Notwithstanding the provisions of section 19 of the CPA with regard to the delivery of goods/property, the risk of the
goods/property or lots purchased on auction shall pass to the buyer upon the fall of the hammer. However, ownership and
title will only be transferred upon full settlement as contemplated in clauses 4.3 and 4.4 hereunder. No complaints will be
entertained thereafter.
4.3. With regard to movable goods/property, settlement for goods/property or lots purchased as contemplated in clause 4.1
herein, including advertised fees and commission, is payable upon delivery on the day of the auction. Should the auction
finish after banking hours, purchases must be settled by 12h00 the day after the auction or the first working day after the
day of the auction where the day after falls on a weekend or statutory public holiday.
4.4. With regard to immovable property, settlement for goods/property or lots purchased as contemplated in clause 4.1 herein,
including advertised fees and commission, is payable upon the signing of a written agreement in respect of the sale of such
immovable property by the purchaser and the seller.
4.5. Auctions are cash transactions and not subject to any suspensive conditions such as the granting of finance to the
purchaser. Therefore, bidders intending to finance their purchases must obtain irrevocable approval or guarantee from
their sponsors prior to the commencement of the auction, so that they will be able to fulfil the settlement requirements
contained in clauses 4.3 and 4.4 herein.
4.6. In line with clause 4.5 above, payment terms regarding the settlement of purchases in terms of these Rules of Auction are
strictly cash or EFT, payable in full, without deduction and free of set off for any claim the purchaser may have against the
seller or the owner.
4.7. Cheques are not accepted as payment for purchases. This includes bank guaranteed cheques and bank cashier’s cheques.
4.8. All payments must be made in South African ZAR currency, into the specific Trust Account nominated by the auctioneer
for each auction and provided to the buyer/purchaser in the Notice to Bidders forming part of the Rules of Auction.
4.9. In accordance with money laundering regulations and in the interest of security, the auctioneer does not accept cash at its
auction sites. Cash deposits must be made at the bank and the proof thereof must be presented on site or at the
auctioneer’s premises. Cash payments shall attract a cash deposit fee determined by the auctioneer from time to time and
provided to the purchaser in the Notice to Bidders forming part of the Rules of Auction.
4.10. Should the auction be subject to the payment of Value Added Tax (VAT); all bids will be exclusive of VAT and VAT will be
added to the bid price at the rate applicable at the time the auction is conducted. The bid price plus the VAT portion,
including any commission and other fees; where applicable, shall constitute the purchase price and shall be due and
payable simultaneously.
4.11. Invoices will be made out to buyers/purchasers who are registered bidders in terms of clauses 1.4 and 1.7 herein. No
changes to purchase statements will be allowed, and the splitting of invoices among buyers is prohibited. The registered
bidder is responsible for the payment of the full invoice.
4.12. Should the buyer/purchaser default, a forfeit fee not exceeding 10% of the full purchase price or the total costs of advertising
and conducting the auction, including any additional costs that may have been reasonably incurred in accordance with
regulation 21(2)(l) of the CPA, whichever is the lesser. In such an event of default by the buyer/purchaser, the refundable
registration deposit will be retained and used to set-off the forfeit fee contemplated in this clause 4.12, or part thereof if the
fee is lesser. Should the retained refundable registration deposit be greater, the difference will be refunded to the
buyer/purchaser.
4.13. Should the seller reject the buyer/purchaser's offer or default for whatever reason, the purchaser will not be charged any
fee or commission, and where such fee or commission has already been paid by the buyer/purchaser, such fee or
commission will immediately be refunded to the purchaser, including the refundable registration deposit. The parties shall
have no further obligations under the Rules of Auction thereafter.
4.14. In the event of any claim by the buyer/purchaser in terms of the asset/s purchased, the buyer/purchaser must take up such
claim with the seller and not the auctioneer. The auctioneer acts solely on behalf of the seller and is indemnified against
any claim by the buyer/purchaser against the seller. The auctioneer may, as his discretion attempt to mediate any claim by
the buyer/purchaser against the seller.
4.15. Without exception, no assets will be released to the buyer/purchaser until the total invoice amount has been paid in full and
the funds paid reflect in the balance of the specific Trust Account nominated by the auctioneers. In the case of immovable
property, the transaction deposit must reflect in the balance of the specific Trust Account nominated by the auctioneers for
the offer to purchase to be submitted to the seller for acceptance.
 

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