VENDOR’S TERMS OF SALE BY AUCTION

1.  Contractual Responsibility

Grosvenor Philatelic Auctions Ltd (hereinafter referred to as Grosvenor) will be pleased to accept the role of agent for the sale of material suitable for public auction, the contract for the sale of each lot to be between the vendor and the buyer.

These Terms and Conditions and any dispute or claim arising out of or in connection with them or their subject matter, shall be governed by and construed in accordance with, the law of England and Wales.

2.   Warrant of Title and Availability

The vendor warrants to Grosvenor and to the buyer that he is the true owner of the property, or is properly authorised to sell the property by the true owner and is able to transfer good and marketable title to the property free from any third party claims.  The vendor will indemnify Grosvenor, its servants and agents, and the buyer against any loss or damage suffered by either in consequence of any breach on the part of the vendor.

3.   Vendor’s Commission on Sales

A commission of 15% is payable by the vendor on the hammer price of lots sold unless agreed otherwise between Grosvenor and the vendor.  Grosvenor does not apply a minimum commission or administration fee.

4.   Discretionary Charges

The stated commission charge is fully inclusive in most cases.  Discretionary charges relating to illustration, lotting, storage, extension requests or unsold lots may, however, be charged at current rates under certain circumstances.  A Security Fee of 1% of the hammer price of sold lots may be charged to the vendor unless prior notification is received that the property is fully covered whilst in the custody of Grosvenor.

5.   Reserves

Reserve prices are automatically placed on the vendor’s behalf at a level of 75-80% of the estimated value of each lot.  The vendor shall also be entitled to place prior to the auction a reserve price for any lot, being the minimum “hammer price” at which that may be treated as sold, up to, but not exceeding, the level of the lower estimate.  An agreed reserve may not be changed without the consent of Grosvenor and, where a reserve has been placed, only the auctioneer may bid on behalf of the vendor.

Grosvenor may at their option sell at a “hammer price” below the reserve.  However, in such cases the net sale proceeds to which the vendor is entitled shall be the same as if the sale had been made at the previously agreed reserve price.

6.  Unsold Lots

No charge will be made to the vendor when an unsold lot has been offered at the reserve price recommended by Grosvenor.  Where any lot fails to sell, Grosvenor shall notify the vendor accordingly and recommend reoffer or return.  In the case of an unsold lot offered at a reserve price not agreed by Grosvenor the company reserves the right to apply a discretionary charge at a fixed price, or charged at a level equal to the “vendor’s commission” calculated as if the unsold lot had sold at the unagreed reserve price.

7.   Value Added Tax

Value Added Tax is payable at the current rate on all charges made to UK and EEC residents, and non EEC residents when there is no evidence of importation from outside the EEC.  We are obliged to charge VAT to the buyer on all consignments imported from outside the EEC.

8.  Authority to Deduct Commission and Expenses

The vendor authorises Grosvenor to deduct commission at the “stated rate” and expenses from the “hammer price” and acknowledges Grosvenor’s right to retain the premium payable by the buyer.

9.   Rescission of the Sale

If, before Grosvenor remits the “sale proceeds” to the vendor, the buyer makes a claim to rescind the sale and Grosvenor is of the opinion that the claim is justified, Grosvenor is authorised to rescind the sale and refund to the buyer any amount paid to Grosvenor in respect of the lot.

10. Payment of Sale Proceeds

Grosvenor shall remit “sale proceeds” to the vendor 35 days after the auction, but if by that date Grosvenor has not received the “total amount due” from the buyer, then Grosvenor will remit the “sale proceeds” within five working days after the date on which the “total amount due” is received from the buyer. If credit terms have been agreed between Grosvenor and the buyer, Grosvenor shall remit proceeds to the vendor at the due time after the auction unless an extension of time has been agreed by the vendor.

Should the buyer fail to pay to Grosvenor the “total amount due” within 4 weeks after the auction, Grosvenor will endeavour to notify the vendor and take the vendor’s instruction as to the appropriate course of action. Grosvenor will assist the vendor by all reasonable means to recover the “total amount due” from the buyer. If circumstances do not permit Grosvenor to take instructions from the vendor, the vendor authorises Grosvenor at the vendor’s expense to agree special terms for payment of the “total amount due”, to remove, store and insure the lot sold, to settle claims made by or against the buyer on such terms as Grosvenor shall in its absolute discretion think fit, to take such steps as are necessary to rescind the sale and refund money to the buyer.

If, notwithstanding that the buyer fails to pay Grosvenor the “total amount due” within four weeks after the auction, Grosvenor remits the “sale proceeds” to the vendor, the ownership of the lot shall pass to Grosvenor.

11.  Extensions

Prospective buyers of philatelic items may sometimes wish to obtain an expert opinion on stamps being sold – known as an ‘extension’.  If such a request is received by Grosvenor, and judged in accordance with the company’s terms of acceptance, the lot will be sent to an independent expert or expert committee and the contract of sale will not be confirmed until the opinion is received and the sale ratified or otherwise by Grosvenor.

During this period payment of proceeds to the vendor is suspended, whether or not payment has been made by the buyer to Grosvenor.  Vendors should note that the length of time taken by expert committees to reach an opinion can vary greatly.

12.  Charges for Withdrawn Properties

Where a vendor cancels instructions for sale, Grosvenor reserves the right to charge a withdrawal fee equal to the sum of the “vendor’s commission” and the “buyer’s premium” and shall be calculated as if the withdrawn property had sold at the “mid pre-sale estimate”, together with any expenses incurred in relation to the property. The rate of “vendor’s commission” shall be the rate applicable at the time of consignment of the withdrawn lot. We shall not be obliged to withdraw any property or return it to the vendor unless the withdrawal fee has been paid.