Under the modern method of auction, which statement is true for a successful bid at the guide price?

Under the modern method of auction, which statement is true for a successful bid at the guide price?

• A. Exchange contracts and complete within 28 days.
• B. Pay a non-refundable £13,000 deposit on the day.
• C. Pay a non-refundable reservation fee of up to £6,500 on the day.
• D. Pay compensation of £13,000 if fails to exchange within 28 days.

Answer: (C)

In the modern method of auction, the key upfront step after a bid is accepted is paying a non-refundable reservation fee on the day to secure the property. This fee acts as your commitment and is typically capped (up to a figure such as £6,500, depending on the lot). It isn’t a traditional deposit, and it remains payable if you proceed toward exchange but then don’t complete. After this, the contract moves toward exchange within a defined period (commonly 28 days), followed by completion. So, the true statement is that you pay a non-refundable reservation fee of up to £6,500 on the day. The other options don’t reflect how the modern method auction works: there isn’t a £13,000 day-one deposit, there isn’t compensation of £13,000 if you fail to exchange, and exchange/complete timelines are handled within the sale’s specified process rather than being the immediate action on the day of the bid.

In the modern method of auction, the key upfront step after a bid is accepted is paying a non-refundable reservation fee on the day to secure the property. This fee acts as your commitment and is typically capped (up to a figure such as £6,500, depending on the lot). It isn’t a traditional deposit, and it remains payable if you proceed toward exchange but then don’t complete. After this, the contract moves toward exchange within a defined period (commonly 28 days), followed by completion.

So, the true statement is that you pay a non-refundable reservation fee of up to £6,500 on the day. The other options don’t reflect how the modern method auction works: there isn’t a £13,000 day-one deposit, there isn’t compensation of £13,000 if you fail to exchange, and exchange/complete timelines are handled within the sale’s specified process rather than being the immediate action on the day of the bid.