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1.What is an auction?

 

Auction – is a public sale of goods, securities, companies’ property, works of art and other objects, which is made on pre-established rules of the auction. The general principle for all auctions is the principle of competition among buyers.

 

2.What is the Auction House of the RAC?

 

The Auction House of the RAC is the structure specializing in the sale of the property at the request of natural and legal entities. Established in accordance with the decision of the Board Members of the Association of Alternative Dispute Resolution (SAIVA) (Riga, Latvia) on June 13, 2014. The central office of the Auction House of the RAC is located in Riga, E.Birznieka Upisa street, 18.

 

3.When should I use the service of the Auction House of the RAC?

 

In cases where the owner wants to sell their property at a higher price and wants the sales process to be organized and conducted professionally.

 

4.How is the procedure of an auction conducted?

 

The whole procedure of the aution process is described in the Rules of the Auction House of the Riga Arbitration Court. If the applicant of the auction wants to change the standard rules of the auction process, he can do it, reflecting it in the application for the auction.

 

5.Why should I choose the Auction House of the RAC? 

 

Regulations of the Auction House of the Riga Arbitration Court are universal. However, the applicant can simply change it to fit their needs and adjust the standard process of auction procedure. The professional staff of the Auction House of the RAC will provide consulting and will hold an auction in accordance with the requirements of the applicant.

 

6.How long is the auction process? 

 

Within 3 working days from receipt of the application for the auction and payment of registration fees an announcement of the auction is published. The applicant appoints time and place of publication of the announcement of the auction. Typically, the entire process of the auction for the time takes no more than 14 days.

 

7.How can I use an auction in the dispute on recovering the debt?  

 

If the debtor has property that he is ready to give to the creditor, but the parties can not agree on its value, debaters may transfer the property for sale, receiving the highest maximum possible charge for it. Due to this, the parties may agree that the difference is deducted from the debt, and the creditor no longer requires it.

 

8.Who are the participants of the auction? 

 

Auctioneer – an authorized representative of the Auction House conducting trades. Seller - a natural or legal person who, filling out an application and having paid a registration fee, submits the auction subject to the auction. Seller confirms that he has all the rights for the sale of the subject, as he me not only be the owner but also his confidant. Applicant (s) - it is the seller or an authorized person of the seller. Bidder/auction participant - a natural or legal person who is involved in the bidding process, as a buyer. Contender for the purchase of shall pre-register and pay the amount of collateral of the auction. The winner of the auction - the buyer who offered for the highest price for the auction subject.

 

9.How much does the organization and conduct of the auction costs at the Auction House? 

 

A registration fee of 500 euros will be charged for organizing and conducting the auction. Additionally, if the auction was held and the auction subject is sold, the buyer pays to the auction organizer a commission comprising of 1% of the sale (the hammer price), but not less than 500 euros.

 

10.What are the advantages of an auction? 

 

The main advantage of a public auction is an opportunity to maximize the market price of the property sale. The parties may agree that their dispute ends with a public auction – i.e. the sale of the debtor's property and satisfaction all creditors' claims.

 

11.What can be sold at an auction? 

 

The subject of an auction can be any thing (tangible or intangible) that has value. Auction subject (lot) - a thing, the property (movable or immovable), property right, copyright law, property law or the law of obligations (for example, the right to enter into a transaction or the right to claim), and others.

 

12.What documents are needed for the auction? 

 

Public auction process begins with the filing of an application for the auction in the Auction House of the Riga Arbitration Court. The application should provide all the necessary information about the auction subject and the auction process. For more information, you can read paragraph 2.2. of the Regulations of the Auction House.

 

13.Is the legally binding document issued after the auction process? 

 

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

а)

the place, time and date of the auction;

b)

the name of the auction Organizer, address and contact details;

c)

name of the Auctioneer;

d)

name and number of the sold item(s);

e)

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

f)

the highest price offered during the auction;

g)

name, personal identification number and address of the Buyer.

Act is signed by a representative of the auction Organizer, the Auctioneer, the Applicant(s) and the Buyer(s). It has legal force.

14.How and where can you learn about the auction at the Auction House of the RAC? 

 

The data about the planned auctions are published on the website of the Auction House of the Riga Arbitration Court - www.auction.court.lv. Also, information is published on the information resources that are specified by the applicant. Auction House of the RAC, at its discretion, publishes further information about the planned auctions on various online resources.

 

15.Is it possible to put up more than one item for sale during the process of the auction?

 

Sale takes place in the form of lots. One lot may consist of either a single object to be sold, or of the set of objects. Therefore, if the objects are many, they can be combined into one lot. The cost of this item will be calculated from the value of all sales items.