Regulation
Regulations of the Auction House of the RAC

Regulations of the Auction House of the RAC

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These rules regulate the organization of voluntary extrajudicial auctions, which serve as a tool of alternative types of dispute resolution between the parties. 

 

These rules define the relationship between the Organizer of the auction, the Applicant (-s) of the auction (including the Seller) and the Auction participants (including the buyer). Compliance with these rules is a prerequisite for participation in the auction, which is held by the organized by the auction.


 

1. The terms used in the rules of the auction.

 

Hammer price - the highest price of the auction item (lot) of the auction, which was confirmed by Auctioneer. 

 

Pledge - the amount that auction participant pays to the deposit account of the organizer before the start of the auction.


The organizer of the auction - "The Auction House of the Riga Arbitration Court" which created a society "Association of Alternative Dispute Resolution", Reg. No. 40008023425, which organizes voluntary extrajudicial auctions on behalf of the Applicant. 

 

Auctioneer - a trusted representative of the Organizer of the auction, which conducts auctions. 

 

Commission fees - the amount that is composed of percentage of the hammer price that the buyer must pay to the auction Organizer for holding the auction in accordance with the terms of these regulations.

 

Auction subject (lot) – an item or property (movable or immovable), property law, copyright law, real right (right in rem) or the law of obligations (such as the right to enter into a transaction or the right to claim), etc.., which the organizer of the auction puts up for sale and which has been assigned a lot number in any document or catalog of the Organizer of the auction. 

 

Seller - natural or legal person (the owner of the auction subject or the trustee of the owner), which submits an auction subject to a public auction as well confirms that he has all the rights for the sale of the subject. 

 

Applicant (s) - person (including the Seller), which, after filling in an application and paying the entry fee, announces to the Organizer of a voluntary auction the sale of a particular item by a public auction, with an aim to sell the respective item at the most appropriate market price. 

 

Buyer - a natural or legal person registered as a participant in the auction, who has offered during an auction the highest price for the exhibited item. 

 

Reserve price - the price established by the applicant (-s) before the auction, the minimum sale price at the auction using a descending opening bid (step). 

 

Opening opening bid – price of the auction subject, established by the applicant(s) as the starting price at which the selling of item at the auction begins. 

 

2. Holding an auction


2.1. Organizer of the auction conducts the auction according to the submitted application of the applicant (s) and upon payment for the filing of the application.
 
2.2. In order to submit an auction subject to a voluntary extrajudicial auction, the Applicant submits to the Organizer an application, which indicates:

 

1) Information concerning the applicant(s);

 

2) Auction subject, indicating whether it is an original or a copy;

 

3) Short description of the auction subject and technical data (if any);

 

4) Opening opening bid of the auction subject;

 

5) The Seller of the auction subject (one of the applicants or the other, if the applicant is a trustee), his contact details and the address where it is possible acquainted with the subject of the auction;

 

6) The base, which gives the applicant (s) the right to handle the auction subject (ownership, power of attorney, etc.)

 

7) The fee (if installed) for reviewing the auction subject and its documentation before the auction;

 

8) Whether you agree with the descending opening bid (step) in the cases prescribed by these regulations; The rate of descending step; indicate the reserve price of a descending auction;

 

9) Details of payment account, on which payment for the purchase of auction subject will be transferred after the sale and the rest of the sum of the pledge, after deduction of commissions;

 

10) Special conditions of the auction if will be installed (if different from the above conditions in the regulations). 

 

Upon request, the applicant may attach Certificate examination (if any) to the application for the auction, which confirms that the auction subject is the original or a copy of an author or manufacturer. 


2.3. After submission of the application for the auction, the Applicant's responsibility is to pay a registration fee to the auction Organizer for the auction in the amount of 500 euros, which will not be returned to the Applicant, regardless of the outcome of the auction, including if the auction did not take place. Payment must be made no later than three working days after the submission of the application. Organizer of the auction has the right to unilaterally reduce or increase the registration fee for the conduct of a particular auction. Organizer of the auction has the right not to accept an application without specifying the reasons for refusal. The organization of the auction begins only after the registration fee or thre auction has been received. If the applicant(s) has not paid the registration fee, the application for the auction is annuled. 


2.4. Within three working days from receipt of the registration fee, the Organizer of the auction shall publish the announcement of the auction. 


2.5. The auction is considered invalid if:

 

3. Participation in the auction and the auction process.

 

3.1. In the auction can not participate:

 

3.2. To participate in the auction, an auction participant must pre-register. Auction participant is registered by providing documents confirming his identity and documents confirming the authority (if acting on behalf of another person), as well as, at the expense of making the auction Organizer a deposit of 10% of the initial price of auction subject put up for auction. The Organizer of the auction, according to the instructions of the Applicant, can install a larger or smaller amount of the pledge. 


3.3. The auction participant, after registration and payment of the deposit shall be issued a registration card with the number of participant. Registration card can not be transferred to the third parties. If a participant can not attend the auction in person, he can entrust (in writing) any trustee representation of their interests in the auction. 


3.4. One may register to participate in the auction by submitting the registration form to the Office of the Riga Arbitration Court (Rīgas Šķīrējtiesa) on weekdays from 10:00 to 17:00 at the following address: Riga, E. Birznieka-Upīša iela, 18. Registration of the participants ends a half-hour before the start of the auction.


3.5. Before registering participation in the auction, a participant is responsible for acquaintance with the auction subject - its actual state, legal status and documentation, as well as the terms of the auction and these regulations. Before examining the auction subject, a participant’s responsibility is the payment amount for the study of the auction subject, if established by the Applicant (s). Registering their participation in the auction, the participant confirms that he has familiarized himself with the auction subject, its actual state, the legal status and its documentation, and also confirms that he is familiar with the terms of the auction, these regulations and agrees with them. The Organizer of the auction is not responsible for the compliance of auction subject with its description, data and information about it. Any claims, demands, and objections on the subject of the auction, opening bidders and / or the Buyer may be submitted only against the Applicant (s) and / or the Seller.
 
3.6. Beginning the auction, the auctioneer:

 

3.7. Raising the numbered registration card once, auction participant, as the first buyer, confirms its readiness to pay the reserve price. Each subsequent uplift of the card by an auction participant increases the initial price of the auction subject for a certain amount of money in euros, according to the rates of the auction of these rules or in accordance with the special rules of the auction, if any, for the specific subject of the auction. 


3.8. Auction participant shall be entitled to verbally name another, higher price for the auction subject, which he is willing to pay. In this case, the auction proceeds from the named higher price following the usual step of the auction. 


3.9. If two or more participants call the price at the same time it is difficult to determine who to give preference, subject is repeatedly offered at the auction at the last named price. 


3.10. When the opening bids stop and none of the participants offers more than the last named price, the auctioneer three times asks the auction participants whether they wish suggest more than the last proposed price. If no one offers a higher price, the auctioneer strikes the hammer. Strike of the hammer, which confirms the acceptance by the auctioneer of the offer of a higher price for the lot, indicates sale of an item. From this point, it is believed that the purchase agreement was signed, but the ownership of the auction subject passes to the Buyer only when payment is made in full accordance with the terms of these Regulations.


3.11. If none of the participants offers increase, even of the opening opening bid, the auctioneer starts the auction with a descending step, if the applicants in a statement given their consent to the auction with a descending step. The size of the rate of the auction with a descending step is the same as in the auction with an ascending step, as appointed by the Applicant in the application for the auction.


3.12. Auction with a descending step is not conducted if there is only one participant.


3.13. Auction with a descending step begins with the opening opening bid of the auction subject. If anyone proposes the named downward price, the auctioneer asks three times whether anyone wishes to propose a higher price. If anyone offers a higher price, the auction continues with an upward step. If no one in descending auction offers even the reserve price, the auction stops and is declared invalid.


3.14. After the end of the auction Organizer draws up the act, which states:


1) the place, time and date of the auction;

 

2) the name of the auction Organizer, address and contact details; name of the Auctioneer;

 

3) name and number of the sold item(s);

 

4) starting auction price (opening bid) of the item and auction opening bid;

 

5) the highest price offered during the auction;

 

6) name, personal identification number and address of the Buyer; Act signed by a representative of the auction Organizers, the Auctioneer, the Applicant (s) and the Buyer (s).

 

3.15. If the Buyer within six months from the date of the auction proves that items purchased at the auction, which was sold as the original, is a fake, he is entitled to ask the Seller a cancellation of the deal. If the Buyer has already made the payment, then the Seller must return the amount received to the Buyer.
 

4. Bid rates  
 
4.1. At the auction, the following incriments, based on the initial price of each auction subject are used:

 

Opening bid in Euros

Increment in Euros

up to 1000

50,-

1 001 - 10 000

500,-

10 001 - 50 000

1 000,-

50 001 - 300 000

5 000,-

300 001 – 1 000 000

25 000,-

1 000 001 un vairāk

50 000,-

 

4.2. For the specific auction subjects, given the indication of the Applicant (s), incriment rate can be set by the Auctioneer. The Auctioneer states the increment rate before each auction.

 

5. Payment for purchase
 
5.1. The Buyer pays for the purchase of the auction subject within 10 calendar days after the auction, paying directly to the Seller or other person specified in the application for the auction. The Buyer loses the full amount of the pledge, if within 10 days of the auction, he failed to pay the purchase in full amount.


5.2. If the Buyer refuses to pay for the auction subject, it may be prohibited to participate in future auctions.


5.3. The Seller is not obliged to transfer the auction subject to the Buyer before the receipt of full payment for the auction subject.


5.4. After the end of the auction, the auction Organizer calculates the amount of commission that the Buyer should pay the auction Organizer, and announce the sum.


5.5. The auction Organizer holds a commission from the deposit amount paid by the Buyer. If the paid the deposit amount does not cover the commission fees, the auction Organizer informs the Buyer about the amount of commission he needs to pay in accordance with these Regulations.


5.6. After deduction of fees, the Organizer of the auction shall transfer the rest of the deposit amount to the Seller, and the Seller shall deduct it as a partial payment for the purchase.


5.7. The Buyer is obliged to pay the Organizers of the auction a commission of 1% (one percent) of the hammer price, but not less than 500 Euros. The Organizer of the auction, on its own initiative, has the right to reduce the fees, previously having informed about that in the announcement of the auction.


5.8. The Seller and the Buyer after the auction may make a written contract of sale of the auction subject, according to the results of the auction (the act of the auction).


5.9. Payment for the auction subject must be made by wire transfer of money or cash, if the law and the conclusion of the contract allows it.