Property auction rules

A property auction, or competition for the highest bid, is a fair and transparent way of selling in cases where more than one person is interested (or expected to be interested) in the purchase.

We organize auctions through sealed bids (sometimes called a silent auction). Today bids do not have to be physically sealed in an envelope (although that is still possible), but instead can be submitted electronically via an online auction system or by email.

Binding rules and conditions for the auction ensure they are conducted fairly and flawlessly.

  1. These rules and instructions for property auctions (collectively referred to as the “Rules”) lay out how offers are selected by seller, which is mediated by the real estate agency RE/MAX Alfa (hereinafter referred to as the “Auction”).
  2. Through the RE/MAX Alfa Real Estate Agency specified in the Auction Conditions (hereinafter referred to as the “RE/MAX Alfa Office”), the Seller shall invite those interested parties who have expressed an interest in participating in the Auction to the RE/MAX Alfa Office to submit a binding offer to purchase the property (hereinafter “Offer“).
  3. The Applicant will receive an invitation to submit an Offer electronically to the contact email address provided by the applicant for this purpose to the RE/MAX Alfa Office or by placing the invitation on the website that the applicant was informed about for the property inspection (hereinafter “Invitation“). The invitation consists of an accompanying report and annexes thereto. It includes:
    1. Property auction rules;
    2. The document “A Binding Proposal for the Conclusion of a Purchase Agreement” (hereinafter referred to as “Binding Proposal”);
    3. Specific Conditions of the Auction (hereinafter referred to as the “Auction Conditions”);
    4. A draft agreement on the composition of the reservation deposit (hereinafter referred to as the “Agreement“);
    5. An auction number (i.e. an auction code for submitting bids electronically).
  4. Before submitting an Offer, the Interested Party shall check the completeness of the delivered Invitation and carefully acquaint themselves with its entire content. Any questions regarding the content of the Invitation or details on the processing of personal data may be submitted in writing to the RE/MAX Alfa Office by means of the contact details specified in the Auction Conditions within the deadline for submitting Bids.
  5. A bid can be submitted only through the Binding Proposal. The binding proposal must contain the identification number of the property which is the subject of the Auction and to which the Offer relates (hereinafter referred to as the “Real Estate”). Only one offer for one specific property can be submitted in one binding proposal, otherwise the offer will not be taken into account. The applicant, truthfully and completely, fill in all the data required in the binding proposal and attaches a handwritten signature.
  6. The completed Binding Proposal will be delivered to the interested party in paper form to the RE/MAX Alfa Office. The Applicant may also scan the original of the completed and signed Binding Proposal into a fully readable PDF file and send it to the contact email of the RE/MAX Alfa Office via the contact email provided, or send the scanned form via the auction system for the relevant property on the website. The deadline for submission and the method for delivering Bids are determined by the Auction Conditions.
  7. By submitting an Offer, the Applicant expressly declares that:
    1. The invitation was delivered to them at their request and that they are completely and carefully acquainted with its content, especially with the Rules and Conditions of the auction, and they agree with the Invitation; and
    2. understand the draft Agreement, which they are ready to negotiate with the Seller and the RE/MAX Alfa Office, if requested to do so by the RE/MAX Alfa Office during the binding period of the Offer; and
    3. undertake to pay, on the basis of the concluded Agreement, a so-called reservation deposit, the amount of which is determined by the Auction Conditions and declare that they have secured sufficient funds to pay for the reservation deposit;
    4. are ready and have a serious interest in acquiring the Property;
    5. their Offer is governed by the Rules;
    6. all information is true and provided with serious intent.
  8. Within a single Auction, the Bidder is entitled to change the Bid, but only until the closing date of the auction. The Applicant is bound by the Offer until its termination in accordance with these Rules.
  9. Offers that do not meet the conditions of the Invitation do not have to be evaluated by the seller.
  10. Bids received after the auction deadline will not be taken into account.
  11. The criteria for the evaluation of bids are set out in the Auction Conditions. The applicant acknowledges that the evaluation criteria are set so that the applicants are better informed, but remain essentially indicative. The seller reserves the right to choose the offer that suits them best. The auction conditions may stipulate that the criteria are binding. In this case, the seller cannot choose another more suitable offer.
  12. Bids will be evaluated within the period defined in the Auction Conditions. The Bidder’s Offer is deemed to have expired upon the passing of the deadline for the evaluation of Bidders, unless the Bidder has previously been notified by email contact that his Offer has been selected. In this way, the Offers of all interested parties may expire.
  13. The Bidder, whose Offer the Seller has chosen, will receive an invitation via the contact email address provided to negotiate the Agreement. The Bidder undertakes, within 2 working days from the delivery of the invitation, to take all necessary legal actions for the Agreement to enter into force and effect.
  14. Upon the expiration of the period laid out in the previous point of these Conditions, the interested party may, at the choice of the seller, be provided with an additional period to fulfill the obligation or may be excluded directly from the Auction. The applicant will be informed about any exclusion via the contact email address.
  15. The Candidate who has breached his obligation pursuant to point 13 above, or whose any confirmation or statement he has provided in connection with the Auction proves to be untrue, is obliged to compensate the damage caused in full.
  16. All received offers are considered confidential. During or after the auction, RE/MAX Alfa does not in principle communicate any information about the received bids to other bidders, with the exception of announcing the winning bid to bidders on request once the auction has been completed.
  17. RE/MAX Alfa reserves the right to change the Invitation without restriction. Any changes are effective upon notification to the interested party (also via contact email). The Candidate has the right to withdraw his Offer within 1 week from the effective date of changes to the Invitation, but no later than before the deadline for submission of Bids, by a written report (also electronically) delivered to the RE/MAX Alfa Office, otherwise it is considered that the change or changes have been agreed to.
  18. RE/MAX Alfa is entitled to terminate the Real Estate auction without reason and compensation. The right to compensation is excluded.
  19. The auction is governed by these Auction Conditions, these Rules and the relevant provisions of Act No. 89/2012 Coll., The Civil Code (order according to binding nature).

What our clients say about property auctions

We asked our selling clients, for whom we organized an auction, how satisfied they were with the result of the sale. You can find their references on the references page.