Auction procedure

The organization and auction conduct are assigned to its organizer.

After decision on sale of an object at auction is made according to the stated procedure the seller negotiates the agency contract on object sale with the organizer of the auction.

The seller:

organizes the search of potential buyers;
provides access to object for interested persons.

The organizer of the auction:

defines the size of the advance for participation in auction;
organizes the search of potential buyers;
organizes the publication of the notice on auction conduct;
provides access to objects for interested persons;
carries out the auction and formalizes its results;
resolves issues arising during auction conduct;
has the right to call off an object from auction in time, provided in the notice;
admits applications for participation in auction with applied documents;
carries out calculations with the participants of the auction according to the stated procedure.

The organizer of the auction creates the committee on the organization and auction conduct (further – the committee) with the order.

The committee can be created for the organization and conduct of one auction or for a certain period of time.

Committee session is considered to be authorized if not less than 2/3 of total number of committee-men are present at session. Decisions are accepted by simple majority of votes of the committee-men present at session by open vote. In case of equality of voices the chairman of the committee (in his absence – the vice-chairman) has the right of a casting vote.

Committee decisions are formalized by record of proceedings, which is signed by the chairman (in his absence – the vice-chairman) and the committee-men who were present at session.

The notice on auction conduct is published not less than 30 days prior to the day of its conduct in the printing mass media defined by the Council of Ministers of the Republic of Belarus.

In addition the information on the announced auction can be disposed in other printing mass media.

The information on the announced auction additionally disposed in the Internet.

Access to the information disposed in the Internet according to the third part of the present point, is given to interested persons free of charge and without contract.

In the notice on auction conduct are specified:

date, time and an auction venue;
full and short names of objects, their location;
the organizer of auction, his location;
characteristics of objects;
the initial prices on objects;
names of sellers, their contacts;
the information on expenses for organization and auction conduct, including the expenses connected with making and granting the documents to participants of an auction, necessary for its conduct, an order and terms of their compensation;
the size of the advance, terms and way of its payment, essential documents of the current (settlement) account on which it should be transferred;
place, date and time of the beginning and termination of reception of applications for auction participation and documents attached to them;
auction procedure;
registration of auction participants procedure;
definition of the winner of the auction procedure;
terms on contracts of purchase and sale conclusion;
contacts of the organizer of an auction for specification and reception of additional information.

When repeat auction is conducted the notice on it is published not less than 7 days prior to the date of its conduct.

In the notice on repeat auction next points are specified:

date, time, an auction venue;
the organizer of the auction, his location;
the name, the location of objects;
the initial prices of objects (integrated subjects of auction);
the information on the ground areas;
the information on expenses for the organization and conduct of the auction, an order and terms of their compensation;
the size of the advance, terms and way of its payment, essential documents of the current (settlement) account on which it should be transferred;
a place, date and time of the beginning and the termination of reception of applications on participation at auction and documents attached to them;
terms on contracts of purchase and sale conclusion;
contacts of the organizer of the auction for specification and reception of additional information;
a reference to earlier published notice.

The person, who wants to take part at auction, not later than the term specified in the notice should:

pay the advance, the size of which is denoted in the notice on auction conduct, by transfer of money to the current (settlement) account of the organizer of the auction. Payment of the advance established for objects of real estate grants the right to participate in an auction on all objects of real estate exposed at an auction, and payment established for objects of personal assets – on all objects of personal assets exposed at an auction;
provide the organizer of an auction with the application form for the participation in an auction with the documents attached;
conclude with the organizer of an auction the agreement on the rights and duties of the parties in the course of preparation and conduct of an auction.

For participation in an auction of legal bodies or individuals, including individual businessmen the following documents are attached to the application form:

By the legal body – the resident of the Republic of Belarus:

a copy of the document confirming the state registration of a legal body; a copy of the payment order assured by the bank confirming the transfer of the advance to the current (settlement) account of the organizer of an auction.

By the legal body – the non-resident of the Republic of Belarus:

copies of founding documents legalized in a standard order and an extract from the trading register of the country of origin (the extract should be made not earlier than 6 months before the date of application on participation in an auction) or other equivalent proof of the legal status according to the legislation of the country of origin;
a document on the financial solvency, provided by attendant bank or other credit and financial organization, with notarization of translation into Belarusian or Russian;
a copy of the payment order assured by the bank on the transfer of the advance to the current (settlement) account of the organizer of the auction.

The individual businessman:

a document confirming the state registration of the individual businessman, and its copy which is assured by the organizer of the auction;
a copy of the payment order assured by the bank on the transfer of the advance to the current (settlement) account of the organizer of an auction.

An individual:

a copy of a payment document assured by bank on the transfer of the advance to the current (settlement) account of the organizer of an auction.

The organizer of the auction, while receiving applications and documents on participation in an auction, concludes with the person, who wants to take part in the auction and presented necessary documents, the agreement on the rights and duties of the parties in the course of preparation and auction conduct.

While applying for the participation in an auction and concluding the given agreement applicants provide the organizer of an auction with:

a representative of a legal body, the individual businessman – the power of attorney (the document confirming powers of the official) and the document proving the identity of this representative;
an individual – the document proving the identity of this individual;
a representative of an individual – notarization of the power of attorney and the document proving the identity of the representative.

The reception of applications on participation in an auction with the attached documents and the presentation of documents finishes in time, defined in the notice on auction conduct. Applications on participation in an auction, received after a target date, aren't considered. Date of receipt of the application on participation in an auction is defined by date of its registration.

After registration by the organizer of an auction of the application with all necessary documents the person, who wants to take part in an auction, puts his signature in the register, then such person is considered admitted to participation in an auction. The person admitted to participation in an auction is given the ticket of the participant in which serial number under which the person is registered is underlined.

The person admitted to participation in an auction has the right to refuse participation.

A refusal is admitted by both the written application and absence at an auction. In this case the sum of the advance is returned to such person within 5 working days from the date of auction conduct. The fact of refusal of participation in an auction is fixed by the committee in a report.

Data on the persons, who want to take part in an auction, aren't subject to disclosure by the organizer of auction, committee-men, and also other persons, except the cases provided by the legislation.

Before the beginning of the auction the organizer carries out final registration of the persons admitted to participation in the auction. Final registration is itself the replacement of tickets of participants of the auction by auction numbers, under which participants will participate in the auction. After the auction its participants are obliged to return these numbers to the organizer of the auction.

Auction is conducted in the place, day and time specified in the notice on auction conduct, by the auctioneer defined by the organizer of auction.

Auction begins with announcement by the auctioneer of the rules of auction conduct, an auction step, which is established by the committee in the rage from 5 to 15 percent of the previous price of object named by the auctioneer (an integrated subject of the auction).

Auction on each separate taken object begins with the announcement by the auctioneer of its name, location, the short characteristic, the initial price of object (an integrated subject of the auction).

After announcement of the information above, the auctioneer declares the initial price of object (an integrated subject of the auction).

If there are two participants of the auction and more, who wants to buy object (an integrated subject of the auction) at the initial price, the auctioneer rises the initial price according to the auction step and names number of the participant of the auction who has lifted auction number first. Then the auctioneer declares the new price according to the auction step. Auction proceeds until an auction number is lifted only by one participant of the auction with the new price declared. The auctioneer names the new price of an object (an integrated subject of the auction) and number of this participant of the auction three times and declares him the winner of the auction.

If after the announcement by the auctioneer of the initial price of an object (an integrated subject of the auction) auction number was lifted only by one of auction participants, the auctioneer names the number of such participant of the auction three times and declares him the winner of the auction.

If after the next fall of the initial price of an object (an integrated subject of the auction) two participants of the auction and more have simultaneously lifted the numbers and it is impossible to define the winner, the committee (the organizer of the auction) makes the decision on withdrawal of this object from the auction.

When the auction is finished on each separate object the auctioneer declares sale of the given object (an integrated subject of the auction), naming the price thrice, on which the object (an integrated subject of the auction) is sold, and number of the participant of the auction which has become the winner of the auction.

An auction on a concrete object is declared failed if:

the application on participation in an auction is submitted by less than two persons;
any of the participants of the auction according to the committee decision hasn't been recognized as the winner of an auction.

If an auction recognized failed because the application on participation is submitted only by one person, the object (an integrated subject of the auction) is sold to such person at its consent at the initial price increased for 5 percent. The consent or refusal of the person to buy object (an integrated subject of the auction) at the initial price increased by 5 percent, is reflected in the auction record of proceedings.

The issues arising during an auction conduct are resolved by the committee (the organizer of an auction).

The participant of the auction has the right to make the complaint about violation of an order of auction conduct to its organizer within 2 working days from the date of auction conduct. The organizer of the auction is obliged to consider it before the conclusion of the contract on purchase and sale of object with the winner of an auction. In case of acknowledgement of the fact of violation of an order of auction conduct its results are cancelled and new auction is announced. Thus received advance is returned to all participants of an auction within 5 working days from the date of auction conduct.

Results of the auction on concrete object can be cancelled by the organizer of the auction in cases, if the winner of the auction:

hasn't signed the record of proceedings on results of the auction;
hasn't compensated expenses for the organization and auction conduct;
hasn't concluded the contract of purchase and sale on object.