Our company wants to auction some properties and choose an auction company. Are there any principles, standards and procedures for choosing an auction company?

In the process of entrusted auction, certain basic principles need to be followed. Then, clients are divided into citizens, legal persons and other organizations. What are the main auction entrustment methods and procedures? I hope the following contents will help you.

Auction entrustment is the initial stage when the client brings an auction to the auctioneer.

(1) customer classification

According to the definition of principal, there are three main types of principal.

(1) citizen. In auction entrustment, only natural persons with civil capacity can become trustees.

(2) legal person. It refers to an organization that has the capacity for civil rights and civil conduct, enjoys civil rights and undertakes civil obligations independently according to law.

(3) Other organizations. It refers to an organization that does not have the qualification of a legal person, but can independently conduct civil activities as a subject of civil rights.

(2) auction entrustment methods and procedures

Due to the different nature of the principal, the auction commission is a special commission.

1. Arbitrary auction entrustment program

Arbitrary auction is an auction initiated by the client according to his own wishes. The procedure of arbitrary entrustment auction is simple, and the client can establish the responsibilities, rights and obligations of both parties in this auction according to the Entrusted Auction Contract signed by the auction enterprise and the auctioneer.

The procedure of arbitrary auction entrustment generally includes four steps:

(1) The auction intention of the client.

(2) Find an auctioneer.

(3) Both parties negotiate.

(4) Determine the auctioneer and sign the auction contract.

2. Legal auction entrustment procedures

Legal auction entrustment refers to the auction initiated by the state administrative organs and law enforcement departments in accordance with laws and legal administrative and judicial procedures.

The statutory auction entrustment procedures are as follows:

(1) Send an auction letter.

(2) The auctioneer accepts the entrustment.

(3) signing an auction contract,

(3) Entrust auction contract;

1. Contents of the entrusted auction contract

The content of an auction contract refers to the contract terms that determine the rights and obligations of the client and the auctioneer.

2. Negotiation of entrusted auction contract

(1) Reserved price negotiation. When determining the reserve price, we should consider the market price of the auction target. The reserve price is generally lower than the current market transaction price. The reserve price is different from the starting price, which can be lower than, equal to or higher than the reserve price. The reserve price is not completely equal to the current market price.

(2) Negotiation of commission ratio and payment method.

1) It is legal to collect commission.

2) commission ratio. Charge different commissions for auctioning any items and public property. In the case of a non-public property auction, if the client and the auctioneer fail to reach an agreement, the auctioneer may charge the client a commission not exceeding 5% of the auction transaction price. The commission collection ratio shall be determined in accordance with the principle of inversely proportional to the auction transaction price. In principle, public property auctions do not charge auction commissions to clients.

3) The method and time limit of commission payment. There are generally two ways to pay the client's commission: ① Prepayment. Refers to the payment of all or part of the commission after the signing of the entrusted auction contract, such as the auction of cultural works of art or enterprise property rights. ② Deductive method. That is, after the buyer pays the price, the commission is deducted from the transaction price according to the agreed proportion, and the balance is paid to the customer.

If the transaction is not completed, a certain amount of auction fees shall be paid to the auctioneer according to the agreement between the trustor and the auctioneer in the auction contract, so as to safeguard the legitimate interests of the auctioneer.

(3) Negotiation on the payment method and time limit of the transaction price. Auction is a special buying and selling activity. After the auction is completed, the client has the right to obtain the price of the auction target. According to the entrustment contract, the auctioneer is obliged to pay the total transaction price after deducting the commission to the client. The auction contract shall specify the payment method and time limit of the auction target price.

(4) Negotiating the time and method of delivery or transfer of auction targets. In the auction of movable property, the client may, as agreed, deliver the auction target to the auctioneer before the auction, and the auctioneer shall be responsible for keeping it. After the auction is completed, the auctioneer delivers the auction target to the buyer. If the value of the subject matter needs professional custody or insurance, the subject of its expenses should be clearly defined. In real estate auction, it is generally agreed that the client will deliver the auction target to the buyer after the auction is completed. If it is necessary to change the license or transfer the property right according to law, the trustor and the buyer shall handle the transfer and delivery procedures with the transaction certificate and related materials issued by the auctioneer.

Judging from your question, you are a company, and the auction entrustment method should be arbitrary auction entrustment, that is, you can freely choose an auction company to serve you. We have an auction company and hope to help you.