I. Who can sell personal property on Vaka’s auction website?

All individuals who have reached the age of 18 and are financially capable can sell personal property on Vaka auction website.

II. What are the conditions for selling liquid assets on Vaka auction website?

All vehicles to be sold on Vaka auction website must be the seller’s registered property, and be free of encumbrances and encumbrances. Vehicle taxes and other public charges on the vehicle must also be fully paid in order for the Vaka auction website to accept the vehicle for auction processing. The same applies to other movable property, that the seller is the owner of the movable property and that it is free of encumbrances and liens.

III. Where is the auction difference located during an auction on Vaka auction website?

Auction lots can be located anywhere, provided that interested buyers can view and learn about auction lots. However, the general rule is those auction items are located in Vaka auction house at Héðinsgatu 2, 105 Reykjavík or in a designated outdoor area run by Vaka.

IV. What is the seller’s disclosure obligation?

The seller must always give a clear description of the auction difference before the auction process begins and inform about all known defects and other issues that may affect the value of the auction difference.

Although it is specifically stated that the auction item is sold in the condition it is, the seller can be considered responsible for defects if the auction item does not correspond to the information provided by the seller or if the seller has neglected to provide information about matters of significant importance regarding the auction item or use him and the seller had to know and the buyer could expect that the seller informed about cf. IV. section of the Act on Purchase of Liquid Assets no. 50/2000.

V. How is the price obtained for auction items determined on Vaka auction website?

The seller must specify an acceptable minimum price for all auction items accepted by Vaka for sale processing. The seller decides whether or not the specified minimum price is displayed to interested buyers. Then the seller can also choose to specify the price at which buyers can buy the auction difference, without further notice, the so-called “buy it now” price.

Price formation is then determined by the bids received during the auction. If the highest offer reaches the specified minimum price, the seller is bound by that offer and has then reached a binding purchase agreement.

VI. What is the course of an auction after the auction difference is registered on Vaka auction website?

Once all documents have been signed, an auction bid is generated and posted on the auction site with the seller’s terms of the auction time, minimum price and/or target “Buy It Now” price.

Each auction cycle generally lasts 5 to 7 days, during which time interested buyers can view auction items in Vaka’s auction house and make offers on the auction website. When a bid is made in an auction, the highest bid price is always visible, and a new bidder can then bid a higher price to get his bid registered.

A bidder can also activate auction monitoring and make a so-called “Running Bid”, in which case the bidder registers the maximum price at which she/he is willing to buy auction bids. An auction website then automatically outbids the bids of other bidders in low increments, until others stop bidding or the stated maximum price is reached.

All offers are subject to cash on delivery and, if applicable, VAT is included in the offer price unless otherwise stated. Offers cannot be made with reservations.

If the highest bid at the end of the auction round is equal to or higher than the stated minimum price of the seller, a binding purchase agreement has been reached for the relevant auction difference and the seller is then bound to sell to the highest bidder for the purchase price that was offered the highest and the bidder is also obligated to pay the purchase price within the prescribed period from the closing of the auction round.

If the minimum price is not reached, the seller has a choice as to whether the highest bidder is invited to buy the auction difference, the auction difference is withdrawn from the sale or put back on the auction. If the seller intends to waive the terms of the minimum price and go to the highest offer even though the minimum price has not been reached, a decision on this must be made within one hour of the closing of the auction round.

The bidder is only bound to his highest bid, whether it reaches the minimum price or not, that it is the highest bid that was made in the relevant auction round. In this way, the bidder is freed from the obligation to fulfill the bid, as soon as another bidder offers a higher price in the same auction.

As soon as the sale proceeds of the auction items have been paid to Vaka and all the necessary documents for the purchase have been produced and signed, a settlement will take place. The auction margin is then handed over to the new owner and the sale proceeds, less sales commission and possible costs, paid to the seller within three working days.

After the purchase is completed, the buyer must immediately remove the auction item from Vaka’s area of operation. If the buyer has not removed the auction item within three days after the purchase was completed, the auction item is transferred to Vaka’s storage area and the buyer pays a storage fee for the auction item in accordance with Vaka’s fee schedule. If the auction difference has not been collected within three months from the time the difference was taken into storage, Vaka reserves the right to sell the auction difference to settle the accrued costs or dispose of the auction difference at the buyer’s expense.

VII. What if the wrong price is offered for an item or if there is an error when making an offer?

The auction website supervisor monitors the progress of each auction round and notifies if obvious errors are noticed in auctions. However, Vaka’s auction website is not responsible for errors that the bidder may make when making an offer, or the consequences that this may have, and the bidder must immediately contact the administrator of the auction website by e-mail at [email protected] if an error is noticed in the bid, and request to have the error corrected.

VIII. What happens if the auction item does not sell?

If the auction margin fails to sell in the first round, the seller may choose to run a second round of auctions in accordance with the provisions of the agency and service agreement. The second round must take place within two weeks of the end of the previous round.

If the sales and service agreement with Vaka expires without the auction margin being sold, or if the seller decides that further auctions will not be attempted, the seller must remove the auction margin from the operating area of Vaku’s auction website without delay. If the Seller has not collected the auction proceeds within three days of the closing of the auction round, the auction proceeds are transferred to Vaka’s storage area and the seller pays a storage fee for the auction proceeds in accordance with Vaka’s fee schedule. If the auction difference has not been collected within three months from the time the difference was taken into storage, Vaka reserves the right to sell the auction difference to settle the accrued costs or dispose of the auction difference at the seller’s expense.

IX. General disclaimers

Vaka is not responsible for loose items in vehicles or vehicles in an outdoor area or in a storage port.

All information on Vaku’s auction website is subject to typing errors. Vaka reserves the right to change these terms and conditions, and new terms and conditions enter into force as soon as they are published on the company’s website, vaka.is

Approved on the 17th. January 2020