CAP issue guidance on guide prices and fees

Wednesday 21 December 2016

CAP have today publicly issued guidance providing clarity on how auction houses should present mandatory fees and charges when referring to guide prices.

It's intended that the new guidance will assist auction houses in ensuring that their marketing material – which would include online and hard-copy catalogues – is compliant with the CAP Code, thereby avoiding the potential for complaints and subsequent investigation by the ASA.

The guidance covers areas including:
• How should-non optional fees be displayed
• Do fees need to be VAT inclusive?
• Fees calculable in advance
• Fees not calculable in advance
• Minimum fees
• VAT on lots
• What information you need to provide to consumers
• Fees subsequently levied by vendors

It's essential that all NAVA members read the guidance thoroughly and address any concerns or questions directly to the CAP copy advice team.

If you have any feedback on the guidance that you would like to share with NAVA, please get in contact by emailing communications@propertymark.co.uk

Mark Hayward, Managing Director, National Association of Estate Agents, said: “Buying anything at auction can be a minefield, and having non-optional fees which aren’t included in the guide price can make the process even more confusing for potential buyers as they find additional charges stacked onto the final price that they were prepared to pay.

"The guidelines outlined by the Advertising Standard Agency today will go some way in helping to break down the processes and make the costs involved of buying anything at auction much clearer for would-be buyers. We will be passing the guidelines on to all National Association of Valuers and Auctioneers (NAVA) members, and look forward to working with ASA to ensure non-optional fees are upfront, transparent and fair.”

>> DOWNLOAD THE NEW GUIDANCE <<

<< READ EXPLANATORY LETTER FROM ASA <<