Auction FAQ

Absolute (No Reserve) — The property sells to the highest bidder regardless of price. There is no minimum. This creates urgency and often attracts more bidders.

Reserve — The seller sets a confidential minimum price. If bidding does not reach the reserve, the property may not sell. "Reserve met" status may be shown during the auction.

Sealed Bid — All bids are submitted privately before a deadline. The highest bid wins. Bidders do not see other bids.

Online Timed — Bidding opens and closes at scheduled times. If a bid is placed in the final 5 minutes, the auction automatically extends by 5 minutes to prevent last-second sniping (soft close).

Individual buyers:

• Valid government-issued ID (passport or national ID card)
• Proof of address (utility bill or bank statement dated within 3 months)
• Proof of funds or pre-approval letter from your bank
• Signed auction terms & conditions agreement

Corporate / company buyers additionally need:

• Company registration documents (certificate of incorporation)
• Board resolution authorising the bidder to act on behalf of the company
• Director ID and proof of authority

Before you can place any bid on a Propworths.com auction, you are required to complete a mandatory security deposit process. This ensures that only serious, financially capable bidders participate and protects sellers from non-genuine bids.

Step 1 — Pay the deposit: Transfer USD 1,000 (or the equivalent in an agreed currency) into the Propworths Global Property Trust account. Banking details are provided to you on registration. The deposit is held in trust, separate from Propworths.com’s operating funds.

Step 2 — Upload proof of payment:

• Upload your bank transfer / EFT confirmation directly on the auction listing page through the Propworths.com webapp before placing your bid.
• The proof of payment must reference the Auction Listing Reference Number (e.g. PF-AUC-XXXX) as shown on the listing page.
• A copy is automatically forwarded to auctions@propworths.com with the reference number for verification.

Step 3 — Verification: Propworths.com verifies that the funds have reflected in the trust account, typically within 24 hours during business hours. Once verified, your ability to bid is activated. Tip: complete this process well before the auction opens.

If you WIN the auction: The USD 1,000 is credited toward your final purchase price at closing. It is reflected in the sale agreement and settlement statement.

If you DO NOT WIN: The USD 1,000 is fully refunded by Propworths.com from the Propworths Global Property Trust account, back to the account you paid from — typically within 5–7 business days of auction close.

If you DEFAULT after winning: The deposit may be withheld pending resolution of the default. The seller may pursue a claim against the held funds. The separate 5% Platform Commission on the accepted bid also remains payable within 48 hours — these are two separate obligations.

Commission is only charged on a successfully completed sale — never on unsold or withdrawn listings.

Agent or Auctioneer listed auction:

• Total commission = 10% of the final sale price
• 5% goes to Propworths.com
• 5% goes to your agent or auctioneer
• Both portions are deducted from your sale proceeds at closing

Private / Owner listed auction (no agent):

• Total commission = 5% of the final sale price
• 5% goes to Propworths.com only — nothing further
• You keep the remaining 95% of the sale price (before transfer costs)

Example — Agent listed, sold at USD 500,000:

• Propworths.com: USD 25,000 (5%)
• Agent: USD 25,000 (5%)
• Seller receives: USD 450,000 net (before transfer costs)

Example — Private listing, sold at USD 500,000:

• Propworths.com: USD 25,000 (5%)
• Seller receives: USD 475,000 net (before transfer costs)

Commission is deducted at closing. A tax invoice is issued automatically. Full terms in the Seller Agreement — Section 5.

Bidder Security Deposit (pre-bid, refundable): Before placing any bid you must deposit USD 1,000 into the Propworths Global Property Trust account and upload proof of payment to the listing page. This is credited to your purchase price if you win, or fully refunded by Propworths.com if you do not win. See the security deposit FAQ above for full details.

Commission — paid by the seller, not you: The 10% commission (agent-listed) or 5% (private listing) is a seller-side obligation deducted from the seller's proceeds at closing. It is not an additional charge on top of your bid as a buyer.

Sale deposit (on winning): If you win, you pay a deposit — typically 10% of the hammer price — into the designated conveyancer or trust account within 24 hours. Your USD 1,000 pre-bid security deposit is credited towards this amount.

Transfer costs: Legal/conveyancing fees, stamp duty, and registration fees as required by local law in the country of sale. Responsibility for these varies — check the listing's special conditions and get local legal advice.

Propworths.com does not charge buyers a listing or platform access fee. Platform commission on buyer default (if applicable) is a separate matter — see the default FAQ below.

Yes — and we strongly recommend it. Most auctions schedule open inspection days, listed on the auction detail page. You can also request a private viewing through the auctioneer.

Before bidding, you should:

• Physically visit the property and verify its condition
• Review the full legal pack (title deed, survey, zoning, compliance)
• Get independent legal advice — auction purchases are typically binding
• Arrange a building inspection if the property type warrants it

Remember: Properties sold at auction are often sold "voetstoots" (as-is). You cannot claim for defects discovered after the sale unless fraud applies.

Immediately after the auction closes:

• You receive an in-app and email notification confirming your winning bid.
• The seller/auctioneer confirms acceptance (for reserve auctions, this may take up to 24 hours).

Within 24 hours:

• You sign the agreement of sale / memorandum of sale.
• You pay the sale deposit (typically 10% of the hammer price) into the designated conveyancer or trust account. Your USD 1,000 pre-bid security deposit is credited towards this amount — your attorney releases it as directed by the conveyancer.
• Commission (10% if agent-listed, 5% if private) is deducted from the seller's proceeds at closing — this is not an additional charge to you as the buyer.

Within 28–42 days (varies by country):

• Conveyancing/closing attorneys handle the legal transfer.
• FICA/AML compliance checks are completed.
• Bond/mortgage application processed (if applicable).
• Balance of purchase price is paid.
• Title is transferred — keys handed over. Congratulations!

This is a serious matter. An accepted bid is legally binding. If you fail to complete:

• You will lose your sale deposit (forfeiture applies under the sale agreement).
• The seller may claim damages and re-auction costs against you.
• Propworths.com will charge a 5% Platform Commission on the accepted bid amount, payable within 48 hours of the default notice — this is separate from the sale deposit and any claims by the seller.
• Your USD 1,000 security deposit held in the Propworths Global Property Trust account may be withheld pending resolution of the default and any claims against you.
• Your account will be suspended or banned from future auctions.

See Auction Bidding Terms — Section 5 for the full commission and default policy.

Yes. Propworths.com uses:

• Encrypted connections (SSL/TLS) for all bidding activity
• Identity verification (KYC) before bidding is enabled
• Anti-manipulation monitoring (shill bidding detection, multi-account analysis)
• Auto-extend ("soft close") to prevent last-second sniping
• Full audit trail — every bid is logged with timestamp, IP, and device

See Anti-Fraud & Bid Integrity for our full policy.