ARKANSAS AUCTIONEER EXAM 2024 ACTUAL EXAM 80
QUESTIONS AND CORRECT DETAILED ANSWERS
What should you do prior to an auction? - ANSWER: Agree terms of engagement
Arrange for all relevant legal documentation and plans to be available upon
inspection for as long as possible before the sale
Adopt the RICS Common Auction Conditions
Choosing venue of sufficient size
Not providing misleading guide prices
Advise all applicants if lots are withdrawn prior
Confirm VAT / EPC condition
What RICS documentation is there that is applicable to auctioneering? - ANSWER:
RICS Professional Standard: Auctioneers Selling Real Estate (Incorporating Common
Auction Conditions) 2018
What is contained within common auction conditions? - ANSWER: A glossary
Auction conduct conditions (can't be disapplied or changed without auctioneer's
consent)
General conditions of sale
Special conditions of sale
Addendum
Memorandum of sale
What are common auction conditions? - ANSWER: An important guide for the
auctioneer in their relationship between the seller and the buyer/bidder and in their
powers and duties throughout the process.
What is in General Conditions of Sale? - ANSWER: Details regarding:
The lot
Deposit
Between contract and completion
Title and Identity
Transfer
Completion
Notice to Complete
If the contract is brought to an end
Interest apportionments
Arrears
VAT
Capital Allowances
What is in the Special Conditions of sale? - ANSWER: Details specific to the property:
Name and address of seller
Name, address and references of seller's solicitors
, Lot Address & Lot Number
Tenure
Title
Tenancy Schedule
Arrears Schedule
Any costs (searches etc)
Details of costs if the buyer fails to complete
What measures do you take to ensure that guide prices are not misleading? -
ANSWER: On Allsop's website, we provide 'Auctioneer Terms for All Auctions', which
provides:
Glossary
Register to bid process
Notices for prospective buyers
Auction conduct conditions
Website terms & use of data
Appendix comprising a Purchase Agreement
What is a guide price? - ANSWER: An indication of the minimum price that a vendor
may be willing to sell at.
It is not an indication of valuation or the eventual selling price.
In line with RICS rules - there should be no 'BAIT' pricing (marketing pricing).
What is a reserve price? - ANSWER: The agreed minimum price that the auctioneer
can sell the property on behalf of a vendor for.
It needs to fall within 10% upwards of downwards of the guide price.
How does a guide price and a reserve price relate? - ANSWER: The reserve should be
no lower or higher than 10% below the guide.
If there is a range of guide prices then the reserve price cannot exceed the guide
price
The are both able to change depending on levels of interest.
However the reserve price must be agreed at the latest a day before the auction
(with the agreement in writing from the seller).
Is having a sliding scale Guide price with reserve in between ethical? - ANSWER: Grey
area.
Careful not to bait the market but is permitted by the Advertising Standards
Authority.
At Allsop it would be at the lower end of this scale
Benefits of auction as a method of sale? - ANSWER: - Known timescales
- Certainty of a certain level of sale price due to the reserve price
QUESTIONS AND CORRECT DETAILED ANSWERS
What should you do prior to an auction? - ANSWER: Agree terms of engagement
Arrange for all relevant legal documentation and plans to be available upon
inspection for as long as possible before the sale
Adopt the RICS Common Auction Conditions
Choosing venue of sufficient size
Not providing misleading guide prices
Advise all applicants if lots are withdrawn prior
Confirm VAT / EPC condition
What RICS documentation is there that is applicable to auctioneering? - ANSWER:
RICS Professional Standard: Auctioneers Selling Real Estate (Incorporating Common
Auction Conditions) 2018
What is contained within common auction conditions? - ANSWER: A glossary
Auction conduct conditions (can't be disapplied or changed without auctioneer's
consent)
General conditions of sale
Special conditions of sale
Addendum
Memorandum of sale
What are common auction conditions? - ANSWER: An important guide for the
auctioneer in their relationship between the seller and the buyer/bidder and in their
powers and duties throughout the process.
What is in General Conditions of Sale? - ANSWER: Details regarding:
The lot
Deposit
Between contract and completion
Title and Identity
Transfer
Completion
Notice to Complete
If the contract is brought to an end
Interest apportionments
Arrears
VAT
Capital Allowances
What is in the Special Conditions of sale? - ANSWER: Details specific to the property:
Name and address of seller
Name, address and references of seller's solicitors
, Lot Address & Lot Number
Tenure
Title
Tenancy Schedule
Arrears Schedule
Any costs (searches etc)
Details of costs if the buyer fails to complete
What measures do you take to ensure that guide prices are not misleading? -
ANSWER: On Allsop's website, we provide 'Auctioneer Terms for All Auctions', which
provides:
Glossary
Register to bid process
Notices for prospective buyers
Auction conduct conditions
Website terms & use of data
Appendix comprising a Purchase Agreement
What is a guide price? - ANSWER: An indication of the minimum price that a vendor
may be willing to sell at.
It is not an indication of valuation or the eventual selling price.
In line with RICS rules - there should be no 'BAIT' pricing (marketing pricing).
What is a reserve price? - ANSWER: The agreed minimum price that the auctioneer
can sell the property on behalf of a vendor for.
It needs to fall within 10% upwards of downwards of the guide price.
How does a guide price and a reserve price relate? - ANSWER: The reserve should be
no lower or higher than 10% below the guide.
If there is a range of guide prices then the reserve price cannot exceed the guide
price
The are both able to change depending on levels of interest.
However the reserve price must be agreed at the latest a day before the auction
(with the agreement in writing from the seller).
Is having a sliding scale Guide price with reserve in between ethical? - ANSWER: Grey
area.
Careful not to bait the market but is permitted by the Advertising Standards
Authority.
At Allsop it would be at the lower end of this scale
Benefits of auction as a method of sale? - ANSWER: - Known timescales
- Certainty of a certain level of sale price due to the reserve price
