Standard Fee Schedule

The Legal Pack

Something else to be aware of is that it's not uncommon these days for a seller to include a contribution to their costs into the legal pack. And this is another reason why it's crucial to read the legal pack.

Fees For the bidders

The fees for selling property are fairly standard. There will be a fee, similar to what you would be charged if you were selling with an estate agent. Often, there will be an entry fee. You will have to pay for your advert in the catalogue. And there will also be a sale fee.

VAT inclusive

If VAT applies to fees, unless all or most of those to whom the claim is addressed pay no VAT or can recover it, it should be included in the fee.

If a premium is 5000/- INR + VAT, it should be referred to as 10000/- INR . Where fees are expressed in percentages, these should incorporate VAT so a fee of 25% + VAT should be stated as 30%. If all those to whom the price claim is clearly addressed pay no VAT or can recover VAT then it can be separated from the fee base price, but the existence and rate of VAT should be prominently stated. In this case, 12000/- INR + 20% VAT.

Fees which are calculable in advance

Where fees can be calculated in advance, either because the organisation operates a fixed fee or (more likely) a fixed percentage structure, this should be stated next to the guide price range:

Minimum fee amount applies

When a fee is on a sliding scale or other flexible basis, but a fixed minimum will always apply, this should be stated:

Fees are compulsory only for some bidders

When fees will apply to some purchasers but not to others, the potential for a fee to apply should be noted:

Fees subsequently levied by bidders

The ASA and CAP are aware that in some instances, particularly in relation to property auctions, the vendors and their solicitors may disclose details of additional fees (such as the requirement for the seller to pay the vendor’s legal fees) at very short notice before an auction. It is understood that such changes are outside the control of the advertiser.

The ASA is likely to consider it acceptable for auction houses dealing with lots where this is more common to include a statement in a suitably-prominent location about the potential for such additions and to direct prospective customers to check the special conditions for individual lots before bidding. For online catalogues, the ASA is likely to expect advertisers to take all reasonable steps to amend their advertising to include any additional fees.