There are many benefits to buying on auction. Sellers are serious. Properties or businesses that are up for auction are there to be sold, not to test the market.

Prior to the auction you can inspect the business. You know what you are prepared to pay and can decide when to stop bidding.

The terms and conditions of sale are transparent as the entire process takes place in a public environment.

The true value of the property is realised. At an auction, you are likely to pay a realistic market price – or even acquire a bargain.

The process is also very fast. If yours is the winning bid, you will know within a couple of days whether the seller has accepted your offer.

How to go about buying on auction

Identify the opportunity

Identify the property or business you wish to bid on. View a copy of the relevant 'Property Brochure', available from the Auction House prior to the auction date. The Property Brochure includes, where relevant, the conditions of sale, the title deeds, the site plan, the zoning certificate, and information on any rental or lease agreements or the business information.

Prepare for the auction

Establish where the auction will be held. Most auctions are held on site at the business that will be auctioned. Occasionally they are held at larger or more convenient venues.

Arrange to view the business in advance, or set aside time to view on the day of the auction.

Decide on the limit you can afford or are prepared to spend. Study the 'Rules of the Auction'. Be aware that if your bid is successful, it is final and legally binding – it cannot be withdrawn or renegotiated and the conditions of sale cannot be altered. If your bid is successful, you will immediately be obliged to proceed to the Auctioneer's desk to sign the Offer to Purchase (the Sales Contract).

Finalise the purchase

Once the Seller has accepted your offer to purchase, you will be required to pay the Auctioneer's commission of 10% of the purchase price, plus VAT, into the Auctioneer's Attorneys' Trust Account.

Once the Seller has accepted your offer to purchase, you will also be required to pay a deposit of 10% of the purchase price and deliver guarantees on the balance of the purchase price within forty five (45) days from the date of acceptance in case of property and seven(7) days in case of business. Guarantees are for the Purchaser's convenience only – if you are not granted a bond by the bank, you are still liable for the full payment, therefore ensure that you have made arrangements for the necessary finance.

If you are married in community of property, ensure that you have a certified letter of permission from your spouse to participate in the auction, or that your spouse attends the auction with you.

You can bid on behalf of a third party if you have a certified letter from the third party (on their company letterhead in the case of a business, accompanied by a certified copy of the resolution authorising you to bid on behalf of the company) granting you permission to do so.

On the day of the auction allow yourself time to register as a bidder and to thoroughly inspect the property/business, as the property is sold in the condition as presented by the Seller on the date of the auction.

You will not be permitted to bid unless you have registered and can show your 'bidder's card' with bidder's number.

Auctions start promptly as advertised, in most instances at 12h00.

The 'Rules of the Auction and Conditions of Sale' will be read out and if any changes have been made to the conditions, these will be brought to your attention.

You will have the opportunity to ask questions.