The purpose of this statute is to establish all the necessary criteria to enable participation to the auction conducted by K GROUP Real Estate Auction House, and also those in which a GOOD is adjudicated to the buyer who gives the best price.
Any person or agent of a legal person can directly participate or by representative and no matter what their nationality or place of residence might be.
In order to take part at the auction the physical or legal person must satisfy the legal conditions, must have the ability to do disposal acts and also to respect the imposed conditions of the Auctioneer by this statute and those from the participation commitments.
All the information regarding the tenders will be treated as highly confidential.
The Auctioneer interrelates with all tenders and also with other people involved in the adjudication and selling process, according to this statute's terms and those of other commitments between him and the tenders.
1. The tenders
At the auction conducted by K GROUP Real Estate Auction House the parties are:
1. The Auctioneer - K GROUP Real Estate Auction House, responsible with arranging and carrying out of the auction. In the award process, the Auctioneer is represented by the auction's chairman and secretary, and in all the other cases, before and/or after the auction, by the authorized representative according to legal provisions.
2. The Seller - physical or legal person, owner of the real property, object of the auction, and his legal agents.
3. The Buyer - physical or legal person, inquired about purchasing by the auction methods pulled out by the Auctioneer, one or more real properties, according to the auction file and the terms of this statute.

K GROUP Real Estate Auction House understands the significance of strategic partnerships, and also the fact that real estate agencies represent those kind of partners in the identification process of the Properties, lead Sellers and Buyers.
That's why K GROUP Real Estate Auction House encourages authorized real estate agents of real estate agencies, by the promotion of participation terms and conditions, and also of the applicable commission in order to recognize their partnership status.


2. Other terms used in this statute
Next terms have the following meanings:
a) Good - any real estate property in the civil circuit, be it agrarian, industrial and residential use, inside or outside city limits; individual houses or houses center; flats; other commercial, touring or industrial use properties, owned by the Seller.
The real estate property represents, at every bid, the object of the auction.
b) The starting price - the price from which the bidding of a property begins. The establishment of the starting price is according to the terms and conditions listed below, and will be realized by the Assessment Commission.
c) The increment - the minimum value allowed to increase (augment) the price during the auction; the increase index is established by the Auctioneer, which has the obligation to inform tenders about this, before the auction starts.
d) The final sale price - the biggest price offered during the auction hailed by the Auctioneer, based on the offers.
e) The participation cardboard - a document that attests the registration at the auction, pulled out by the Auctioneer after satisfying the participations conditions.
The cardboard is used by all the tenders for accessing the auction hall and also to indicate by rising it, the holder's buying intent at a price increased with the increment pointed by the Auctioneer regarding the last called price.
f) Tendering security - the amount paid to the Auctioneer by the lead Buyer in order to guarantee his participation intent at the auction for a determined Good.
So, the tendering security must be paid for each Good that the Buyer wants to adjudicate at the auction; the amount of the security is 1% (one) percent of the starting price.
The tendering security may be in cash or by bank transfer specified by the Auctioneer.
The Buyer can pay the security on the auction day.
If the Good is sold to the lead Buyer, the tendering security will be kept by the Auctioneer as a cash advance of the intermediary commission.
If the Buyer didn't buy any of the Goods performed at the auction, he may choose between leaving the security to the Auctioneer for further auctions, or asking for a refund.
The security drawback can be realized right away or in the next 3 (three) working days (maximum) for the amounts sent by bank transfer.

3. Pre - Auction proceedings

3.1. Registering a Good at the Auction
The seller concerned to sell at the auctions conducted by K GROUP Real Estate Auction House must contact the Auctioneer. It's only ad libitum of the Auctioneer if one Good will be the object of assessment and the subsequent participation at the auction.
If the Auctioneer will consider that the Good fulfills the starting auction proceedings conditions, the Seller will sign a participation commitment.

3.2. The Property Assessment

3.2.1. The Auctioneer commits himself to assess, on his expense, the Good. The assessment will be on the Assessment Commission's task especially designated for this. The Starting Price of one Good must be determined before the initiation of the auction proceedings and will remain valid from the transmission of the auction's opening.
3.2.2. Where, at Good's value evaluation, this one doesn't have already the acquisition value estimated (for example, where the properties, object of a leasing deal (contract) with or without a buying option, hire purchase or based on a annuity mortgage) the estimated value of it will be at least tantamount to the biggest values corresponding to each of the acquisition types.
3.2.3. The estimated values shall not include VAT. Where this tax is applicable, it's to be mentioned separately.

3.3. The Good's folder

3.3.1. The Good's folder is elaborated, on the Auctioneer's expense, representing the reference material that follows the Good to be bidden, and it'll be pulled out for each Buyer. This auction folder will be elaborated when the Good is taken for the Auctioneer's record, after the Assessment Commission valuation, and it will contain:

Good's identifying dates: the owner, space location, landed/topographical information;

Good's detailed description, including its statement, presentation movies, photographs, maps, plans;

estate duty information;

terms and conditions regarding selling (including a selling contract sample and information regarding compulsory contractual clauses);

dates about the title deed and about any other rights concerning a Good;

visiting days and hours;

the Estimated Value and the starting price;

information about a possible financing;

instructions regarding time limits to be observed by Seller and/or Buyer and those to be fulfilled after selling one Good by auction proceedings.
3.3.2. In drawing up the list, the Auctioneer will mention any requirements, rules or criteria, as well as other requisite information to ensure the Buyer a correct, complete and precise awareness about bidding procedures. Therewith, the Auctioneer has the obligation to mention the minimal requirements for that Buyer could participate at the auction.
3.3.3. The Auctioneer asserts that he offers to Buyers all the information form Sellers and, meanwhile, a disclaimer regarding the property to be bidden. Thus, the Auctioneer will act as a mediator between the Seller and the Buyer and will not be liable for the bidden Good. As such, the Auctioneer will be disclaimed for any of the followings:

the property's value, nature, lengthiness, neighborhood, soil structure, water table etc. or the specific seismic risk class, if there is a prior expertise to the Auctioneer's assessment. Note: the Auctioneer doesn't undertake the obligation to do such an expertise during the assessment. All the dates offered to buyers will be limited to that expertise. But the Auctioneer commits himself to verify the official lists of the expertise already done, at local or national level;

fitting the property for various activities and uses;

existing insurances and their value;

the property's accordance with law;

the habitable, marketable, gainful and adjustable to a purpose character;

the type or the quality of construction materials incorporated;

the manner, the quality and the state of repairs or their missing;

the flooding history or any other casualties;

any other property matters, but, as far as this matters become known during the assessment, those will be mentioned in the auction folder.
3.3.4. The reference material of one Good must be offered to any Buyer who made a requisition for this. All registered Buyers will have directly access to auction folder, which will be completely transferred by any communication they find suitable.
3.3.5. The Auctioneer will conduct all prior discussions with Sellers. If the Auctioneer and the Sellers decide that one Good should participate at the auction, they will sign a participation commitment. It is mandatory for this to contain the applicable conditions where the Sellers breaches this commitment the auction rules defined by this statute. The Auctioneer has the right to ask Seller for any necessary warranties, whatever their nature, regarding abidance by auction rules.
3.3.6. After signing the commitment, the Assessment Commission will establish those Good's characteristics to be communicated through the auction folder, the estimated value and any other necessary details.
3.3.7. The Auctioneer has the right to disseminate information related to the Goods on his website (www.licitat.ro) or by informing Buyers from his database which agreed to receive this information.
3.3.8. The Auctioneer has the right to use part of this information as media advertising, including radio-broadcasting and telecasting.
The tenders cannot have any claim against the Auctioneer and cannot complain during the auction nor when signing the contract, on the reason that they didn't had enough time or information practices to familiarize with the auction folder and to acquaint all Good's characteristics.
3.3.9. The Auctioneer has the right, and the Seller commits himself to absolutely cooperate on this, to request this last one all complete, correct and objective information related to a Good, including the legal status.
3.3.10. At least 5 (five) working days before the auction begins, the Auctioneer will announce its opening. This announcement will contain the following information:
a) date, time and place for the auction;
b) Goods list representing the auction object;
c) participation terms and conditions for lead Buyers;
d) the tendering security amount and the payment method.

3.4. Registering at the auction

3.4.1. Registering applications for the auction can be received even in the auction day, as this was notified by the Auctioneer.
3.4.2. Therewith, Buyers will be informed about participation rules and they will be also asked to sign a participation commitment, which will have 2 (two) annexes: Annex 1, a statement signed by the Buyer confirming he knows the auction rules and conditions, and he commits himself to respect those exactly, and Annex 2, containing a description of the Good that Buyer paid the tendering security for. If Buyer will purchase that Good by adjudication, Annex 2 will be signed by all parties, when the auction ends, consigning the purchasing price and Buyer's identity. When filling in the application, Buyer will choose whether to be included into the Auctioneer's database, in order to receive news or information for further auctions.
3.4.3. After that, Buyers will fill in the registering application, annexing the followings:
- tendering security payment proof;
- identification card in copy;
- constituent documents in copy, when participation registering in the name of a legal person is required.
3.4.4. It is only the Auctioneer's will to request any other documents he might consider necessary.
3.4.5. Any other amendment to the form mentioned dates has to be known by the Auctioneer. A Buyer who signed the participation commitment and was filled into database doesn't have to sign this document for further auction participation.
3.4.6. After receiving all before mentioned documents, the auction secretary will register the application and will give Buyer the participation cardboard. This cardboard will be used later, during the auction, to indicate to the chairman his intention to adjudicate.
3.4.7. The Buyer who paid the tendering security may withdraw his application and also he may request the refund anytime before the adjudication of the Good he paid that security for.
3.4.8. All the registered Buyers into the database will receive invitation to further auctions, unless they specifically request not to receive those advertising information.

4. The auction proceeding
4.1. The tenders will enter the auction hall earlier, based on their participation cardboard.
4.2. The auction proceeding goes, usually, in one stage and it ends in the day and at the hour indicated in the auction data sheet. Recording the auction by video or audio tools is strictly forbidden, except recordings developed by the Auctioneer. These recordings are and will remain confidential.
4.3. In specific cases, the Auctioneer, at Buyer's request, may represent this last one during the auction. The Auctioneer has the right to withdraw a Good from the auction, before it begins, without giving any explanations.
4.4. At the beginning of the auction, and also during its process, the chairman is the only agent of the Auctioneer. Any dispute or misunderstandings started up during the auction, will be handled by the chairman. His decisions are final and irrevocable.
4.5. The bid begins always with the starting price mentioned in the auction folder and is always strictly upward.
4.6. Every bid will be according to the Increment index announced by the Auctioneer.
4.7. Rising the cardboard means the Buyer's silent and irrevocable agreement to offer a price augmented with the Increment index up against the last price hailed by the chairman.
4.8. A Buyer can bid for one or more Goods at the same auction. For this purpose, the Buyer can request the Good's individual folder or the auction day catalogue but, in order to participate at every bid, he has to pay the tendering security for each and every one.
4.9. The bidden position adjudication will be irrevocable after 3 (three) hails, to the Buyer who holds the number considered by the chairman to be the last offer. The adjudication in the auction hall represents a strong irrevocable and absolute commitment for purchasing the Good and for its payment.
4.10. The adjudication of the bidden Good represents the Final Sale Price. The Seller himself may bid and may purchase his own Good, preventing (avoiding) that the Good is sold at a lower price than the one he wants.
4.11. At the end of the auction the secretary will ask every Buyer, who adjudicated a Good, to sign Annex 2, in 3 (three) copies, for each Good purchased. If a Buyer refuses to sign Annex 2, his adjudication status will be cancelled, and the tendering security paid will be kept as penalty.
4.12. The transaction between the Buyer who purchased the Good and the seller will be realized as soon as possible after the auction ends, in a reasonable time for fulfilling all the necessary formalities in order to transfer the ownership. All transactions will be according to the mandatory legal requests for this kind of transactions.

5. The price payment
5.1. The payment of the Final Sale Price must be realized within 30 (thirty) days, starting with the auction day.
5.2. For those prices established in other currencies the payment shall be always made in Lei, at BNR official rate available in the payment day.

6. Commissions and penalties
6.1. To the purchasing value the following commissions of the Auctioneer will to be added:
- 3% (three percent) from the Final Sale Price will be paid by the Buyer;
- 3% (three percent) from the Final Sale Price will be paid by the Seller.
6.2. Aside from those mentioned before, if the Seller purchases his own Good, according to paragraph no. 4.10 of this statute, he will pay a discounted 0.5% commission form the Final Sale price.
6.3. From the 3% commission the Auctioneer will cash from the Buyer the difference between its value and the tendering security already paid.
6.4. The commissions charged from or paid to the real estate agencies are the subject of a separate convention between the Auctioneer and these agencies.


7. Payment methods
7.1. The Final Sale Price can be paid in cash or by banking transfer.
7.2. In the banking transfers all the banking commissions incur each party for its bank.
7.3. The purchasing Buyer will also pay the legal taxes, meaning stamp tax and the legal honorarium.
7.4. The title deed of the purchasing Good will be announced after establishing the Final Sale Price and will be given at the alienation of the purchased Good.
The Auctioneer's agents will continue to assist parties until the ownership transfer.

8. Liability caused by miscarriage the auction statute
8.1. If the purchasing Buyer refuses, after the adjudication, to complete the transaction and also to pay the Good's Price, or breaches in any other ways the auction rules, the Auctioneer in authorized, on his behalf as well as representing the Seller, to do the followings:
- to keep the tendering security;
- to forbid that the Buyer or his agents could take part at further auctions.
8.2. If the Seller refuses, after adjudication, to complete the transaction and to make possible the ownership transfer, the Auctioneer may request penalties in amount of 5% (five percent) from the Final Sale Price. The terms and conditions for requesting the penalties are established by the commitment between the Auctioneer and the Seller.
8.3. The parties will owe the amounts mentioned before whether they couldn't complete the transaction for objective reasons, irrespective of their will (as the missing co-owner's agreement regarding the Good, the missing of paymaster's agreement).
8.4. The Buyer or the Seller will have the right to receive a 0.5% amount of the tendering security kept, as penalties.

9. Final stipulations
9.1. The miscarriage of this statute automatically entail the tendering right abolishment.
9.2. Any misunderstandings or disputes between the Auctioneer and the tenders, that cannot be solved amiably, will be resolved by the Arbitration Court near the Chamber of Commerce (and Industry) from Bucharest, by an arbitrator, based on the Chamber rules, this statute and any other documents signed by the parties.