Faraone Casa d’Aste S.r.l. (also Faraone) acts as Agent with exclusive representation, in the name and on behalf of the Client, for the sale of the goods specifically identified in the Mandate to Sell.
The goods shall be sold at auction, unless otherwise agreed. The contract of sale of the goods is between the Client and the highest bidder (the Buyer).
Faraone, at its sole discretion, has the right to decide:
(i) the terms and conditions under which the good(s) will be offered for sale;
ii) the description and the illustration of the goods in the catalogue or the possible reports on the relevant conditions;
(iii) the date and place of the auction(s);
(iv) to consult experts of its choice and to have certifications or analyses carried out in relation to the goods before or after the sale.
The mandate has a duration of 12 months unless otherwise agreed and may be terminated by either party under certain conditions as indicated in the GENERAL TERMS OF THE MANDATE TO SELL.
In particular, if the client withdraws the object before the Auction, he shall pay commissions on the agreed reserve price. If the object is unsold at the Auction, Faraone, for the duration of the mandate, may sell the object by private agreement at the Reserve price. If it receives offers lower than this, it can sell it only after written approval of the Client.
The Reserve, if established between the parties, is the minimum price that must be paid to the Client in case of adjudication, net of commissions, and that will be indicated in the Mandate to Sell.
Faraone may, at its discretion, award and sell the goods at a price lower than the reserve, in this case, the seller will be guaranteed the reserve price.
Commissions and expenses to be borne by the Client
The Client will pay Faraone a sale commission equal to 10% (plus VAT) of the auction price, which will be deducted from the auction price of the goods sold.
Faraone has the right to ask the Client for the costs of insurance for the safekeeping of the goods at Faraone, even in case of no sale, which will be 1% of the reserve price or of the award price if higher.
The Client shall also bear any expenses for certification and/or analysis at the competent bodies.
Expenses borne by Faraone
Faraone shall bear all expenses related to the valuation of the goods, organisation, advertising, printing and distribution of the auction catalogue.
VAT regime applicable to goods sold by auction
If the Client is an Italian or foreign private individual (not subject to VAT), the sale of the goods is subject to the margin scheme pursuant to Article 40-bis of Legislative Decree 41/1995.
If the Client is a VAT taxable person, he is required to declare the VAT regime applicable to each individual good, i.e. whether to apply the “margin scheme” or the “ordinary regime”.
Payment to Client
The goods are considered sold when the Buyer collects them and pays the entire awarded price plus the auction fees. Faraone shall pay the Client an amount equal to the awarded price, after deducting the sale commissions and any expenses incurred, 15 days after the completion of the above sale. Payments shall be made in EURO unless otherwise instructed in writing by the Client.
The above is only an extract from the GENERAL CONDITIONS OF THE MANDATE TO SELL to which reference should be made in legal terms, which will be given to you on the occasion of the signing of the Mandate to Sell.