Most people associate the word auction with a chairman and hammer calling the last bid on antiques or a garage sale to the highest bidder: An invaluable collector's item for a true bargain
A notary can also hold auctions. Usually, these are registered property such as houses, land or ships.
Before an auction at the notary can take place there is a specific process in which a number of steps, as dictated by law have to be are completed. The notary can auction on behalf of mortgagor (in most cases a bank), a creditor with a repossession order or on behalf of the owner (voluntary auction)
When the notary is instructed to hold an auction, a date is set. By law, the owner of the object must be informed (if the auction isn’t voluntary), the items to be auctioned and special auction conditions must be published and usually there is an option for a direct bid.
To go to auctions means extra costs, so it is favorable for all parties, the client, the owner of the auctioned property and the potential buyer, find a solution before an item goes to auction. Usually, it is possible to make a (private) bid within a time limit set by law. Note that a private bid is not possible in auction based on repossession.
Though it seems an easy score at first glance, an auction can result in a less than the hoped-for result. Namely, there is no opportunity to inspect the property / object; in most cases only an appraisal report is made available to the buyer, there are several candidates who all want the best price and the client reserves the right to withdraw. If you are interested to bid at the auction, it is advised to do research or to enlist the help of an experienced professional (like a broker) to avoid disappointment.
When making a (private) bid a valid ID and a banker’s guarantee are required.
Step 1: Opening of the auction
The style of the auction in Aruba is “bidding and junction”. This way of auctioning is so typically Dutch that the term "Dutch Auction" is used in English.
Customary the notary opens the auction as the auctioneer. He explains how the auction works, and that the course of events will be documented in detail per item in a deed, reads the special auction conditions and tries to warm the public for the first part of the auction, the bidding war
Step 2: Let’s start bidding.
For each object a brief explanation and an overview of the cost and minimal bid. The auctioneer asks the audience to bid above the starting bid. Anyone can bid or make a higher bid by raising their hand.
The person with the highest bid is called the bettor. His or her bid is referred to as the 'opening bid'. After the release of the highest bid (adopted after the usual "once, twice, we have a bettor" and a stroke of the hammer of the notary), the notary, will add the information of the bettor to the deed.
Step 3: The Dutch auction
During the second round, the notary will name an amount (well) above the starting bid. The notary reduces the amount gradually either until the starting bid. Is reached or if someone in the audience has called “mijn” (mine in Dutch). It is entirely possible that someone other than the bettor calls this round; it all depends on how much someone is willing to pay. If no one calls this round, the property is ceded to the bettor.
Step 4: After the auction
After the auction the creditor reserves the right during the first business day until 17.00 to not accept the bid. When the bid is too low the creditor may decide to keep the object anyway to sell it in a different way. Hence the person making the bid (bettor or miner) isn’t automatically the new owner.
If there are no concerns the notary draws up a deed transferring the property to the new owner.
For more information: Ms. Jacky Harms