Auctions & Sales
20 terms in this category
Absolute Auction
An absolute auction sells the property to the highest bidder whatever the amount, with no reserve price; common in Western markets, it is not a distinct legal format in Saudi Arabia, where the brokerage contract must state a minimum award value.
Auction Catalog
An auction catalog is the document presenting the properties offered at auction, their details and the bidding terms; in Saudi Arabia it is the «real estate auction bulletin», which must be listed on REGA's platform before publication and announced at least five days ahead.
Auction Deposit
An auction deposit is the amount a bidder pays before taking part to prove seriousness; Saudi Arabia's auction regulation calls it the «entry amount», caps it at 5% of the accredited valuation, and requires its type to be stated: earnest, advance on price or refundable security.
Auction Fees
Auction fees are the amounts borne by the buyer or seller on top of, or out of, the award price to complete an auction sale; in Saudi Arabia they mainly comprise the brokerage commission (sa'y), VAT on it and the Real Estate Transaction Tax, as set in each auction's terms.
Auction Platform
An auction platform is an electronic environment in which real estate auctions are announced, bids are submitted and awards are managed; in Saudi Arabia such platforms operate only under a REGA licence and with mandatory links to REGA's electronic platform and to the national Nafath login service.
Auction Results
Auction results are the data recording the outcome of a real estate auction — whether it was awarded, the award prices and the winning bidders; in Saudi Arabia they are entered in REGA's Real Estate Auctions Register, from which REGA publishes periodic statistical indicators.
Auctioneer
An auctioneer is the qualified person who conducts the bidding, announces bids and awards the sale to the highest bidder; Saudi rules call this person the «real estate auction manager», who must work for a licensed establishment and be registered with REGA.
Bidder
A bidder is the natural or legal person who submits price offers in a real estate auction in order to buy the property, its usufruct or a lease of it; REGA's Real Estate Auctions Regulation calls this person a «competitor», and each bid binds the bidder until it is outbid or the auction closes.
Buyer's Premium
A buyer's premium is a percentage added to the hammer price and paid by the buyer to the auction house for its services; the concept is common in Western markets, and its Saudi real estate equivalent is the «sa'y», the brokerage commission that auction terms often place on the buyer.
Foreclosure Auction
A foreclosure auction is a forced public-auction sale of real estate seized by the Execution Court to satisfy a debt in an executive instrument, such as a mortgage-secured loan or a judgment; in Saudi Arabia it is called a forced sale or sale of seized property under the Execution Law.
Hammer Price
The hammer price is the final price at which an auction is awarded to the highest bidder, known in Saudi Arabia as the award price (sa'r al-tarsiya); it is the basis of the sale contract and of commission and tax calculations, and it excludes the costs added on top of it.
Highest Bid
The highest bid is the largest amount offered by a bidder in a real estate auction that is not topped within the set time; the auction is awarded on it if it meets the minimum acceptable award value or if the owner agrees in writing to accept it.
Inheritance Auction
An inheritance auction is the auction sale of estate real estate that cannot be divided in kind without harm or on whose partition heirs disagree; the price is shared by Sharia shares after debts and bequests, and the sale may be court-ordered or agreed.
Online Auction
An online auction is a real estate auction in which bids and the award are handled on an electronic platform instead of, or alongside, an auction hall; Saudi law treats it as a real estate auction that only REGA-licensed establishments may run.
Private Auction
A private auction is an auction limited to invited or pre-qualified bidders without public announcement, used in some markets for discreet luxury sales; it is not a separate regulatory category in Saudi Arabia, where a real estate auction is defined as public bidding.
Public Auction
A public auction is an auction open to anyone meeting the participation requirements, with bids made openly and the property awarded to the highest bidder; it is the default form in Saudi law, which defines a real estate auction as «public bidding».
Real Estate Auction
A real estate auction is public bidding on a property to sell it, sell its usufruct or lease it at the highest attainable price; it includes online auctions and, in Saudi Arabia, is a real estate service requiring a licence from the Real Estate General Authority (REGA).
Reserve Price
A reserve price is the lowest price at which an owner agrees to sell at auction; Saudi Arabia's Real Estate Auctions Regulation calls it the «minimum acceptable award value», it must be written into the brokerage contract, and the owner need not sell below it.
Starting Bid
A starting bid is the value at which bidding on a property opens; REGA's Real Estate Auctions Regulation calls it the «minimum auction opening value», which must be set in the brokerage contract, and it differs from the minimum acceptable award value below which the owner is not bound to sell.
Title Warranty
A title warranty is the seller's legal duty not to disturb the buyer's enjoyment of the property and to deliver it free of third-party rights predating the sale; Saudi law calls it the warranty against interference and eviction, with special rules for judicial auctions.
Other Categories
Contracts & Leasing
40 terms
Financial & Accounting
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Saudi Regulations
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Property Types
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Valuation & Investment
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Property Management
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Tax & Zakat
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Construction & Development
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Real Estate Technology
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Real Estate Marketing
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Ownership & Rights
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Disputes & Resolution
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Real Estate Financing
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