The highest bidder in the ascending auction is called the first bidder. The first bidder is entitled to a premium (often 1% ) of his/her highest placed bid. In most cases the bidder’s premium is to be paid at the buyers expense. However please check the applicable general auction conditions and specific auction conditions of the property, as this is not always the case. The auction notary will pay the bidder’s premium as soon as the auction notary has received the amount equal to the bidder’s premium from the buyer (or the person who bears the bidder’s premium). If the first bidder becomes the buyer the premium will most likely not be paid, since the buyer has to pay the premium and then receives it. Only in case the seller pays the bidders premium it will be settled with the purchase price.
What is the bidder’s premium?
Written by BVA Klantenservice. Updated over a week ago
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