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Regulations of electronic auction of real estate and regulations

These auction regulations (hereinafter – the Regulations) determine the procedure by which electronic auctions (hereinafter – the Auction) of forest felling sites are organized on the website www.e-silva.lv (hereinafter the Website) and determined the winner (buyer) of the auction with whom the Purchase Agreement of the auctioned felling site is signed.

1. General Conditions

1.1. Auction is organized by the limited liability company Forest Mentor Group (Registration No 40103908547).

1.2. Object auction time - information is indicated on the Website next to each object.

1.3. Auction type - electronic auction with ascending price. The bidder uses the minimum auction bid offered by the Auction Website System or offers a higher one.

1.4. Commission fee - a fee paid by the auction winner to the Auctioneer at the same time as the purchase fee of the auctioned object for the works performed by the Auction Organizer related to the preparation of forest felling sites for sale at the auction.

1.5. The auctions are announced and take place on the Website, where the auction participant is provided with the following initial information about the auction object:

  • name of the object to be auctioned, location, total area of felling areas, total standing volume, cutting methods;
  • the starting price of the auction object (hereinafter - the Starting Price);
  • the minimum amount of the auction step (price increase during the auction) (the minimum auction bid);
  • auction period.

1.6. Documents not published on the website are issued to auction bidders upon request of the respective bidder, by sending them to the e-mail address indicated by the bidder or by issuing them in person.

1.7. Agreements between auction participants that could affect the results and course of the auction are prohibited. The Auction Commission has the right, at its own discretion, to suspend the Auction Participant from participating in the Auction or to terminate and cancel the Auction if it finds or suspects the existence of a prohibited agreement.

2. Sales Conditions

2.1. Simultaneously with the announcement of the Auction Winner, the Commission fee is calculated, which is deducted from the final price of the auctioned object. The Auction Winner shall pay the commission in accordance with the invoice issued by the Auctioneer, which is issued simultaneously with the signing of the Purchase Agreement of Auction Object Purchase the auction object, as well as in compliance with the Regulations and the Agreement on rules for participation in electronic auctions of forest felling sites signed before the auction.

2.2. The winner (buyer) of the auction object shall pay the purchase fee of the auctioned object in accordance with the provisions of the Purchase Agreement of the auction object, complying with the provisions of the Regulations and the Agreement on Participation in Forest Auctions signed before the auction.

2.3. The final purchase price and commission fee of the auctioned object are automatically calculated and presented to the auction winner immediately after the end of the auction.

2.4. If the auction winner, as the bidder of the auction object does not sign the Purchase Agreement of the auctioned object within the specified term, the auction of the object is considered not to have taken place, the auction participant loses the right to sign the Purchase Agreement of the auctioned object, and pays to the Auction organizer a contractual penalty in the amount of 20% of the auction object’s bid price.

2.5. If the auction participant after successful bidding on the auction object, does not pay the offered price (object purchase fee) within the term specified in the Purchase Agreement of the auction object, the signed Purchase Agreement is considered to be terminated, the auction participant loses the right to demand the execution of the Purchase Agreement in turn, the auction of the object is considered not to have taken place. At the same time, the auction participant pays to the Auction Organizer a contractual penalty in the amount of 20% of the offered price< for the auction object.

2.6. If the auction participant fails to pay the commission fee in accordance with the procedure and within the term specified in the commission fee invoice issued by the Auction Organizer after signing the Purchase Agreement of the auction object, he shall pay to the Auction Organizer a contractual penalty in the amount of 20% of the commission fee.

2.7. Payment of contractual penalties does not release the auction winner from full performance of all the agreed obligations, incl. the obligation to pay the commission fee.

2.8. The auction winner is not entitled to participate in other auctions if the Purchase Agreement of the auctioned object has not been signed within the specified period or the auction participant has not paid the offered price(object purchase fee for the object) and/or completely or partially has not fulfilled any obligations agreed with the Purchase Agreement of the auctioned object and/or has not paid the commission fee.

3. Auction Participants and Registration

3.1. Only a legal entity that has registered on the Website in accordance with the Agreement may become a participant in the auction. An auction participant cannot be a legal entity registered offshore.

3.2. Auction participant’s representative is entitled to participate in any auction by registering on the Website.

3. The access rights of the auction participant’s representative to the Website may be revoked (blocked) in the following cases:

3.3.1. The Auction Organizer has a reason to believe that the auction participant is insolvent or has limited solvency;

3.3.2. The auction participant has not submitted all the necessary documents to the Auction Organizer and/or has not paid the Security Deposit and/or has provided false information;

3.3.3. The Auction Organizer establishes or has reasonable suspicions that the auction participant is performing activities that could affect the outcome and/or the course of the auction;

3.3.4. The auction participant has not complied with the Auction Regulations in any of the previous auctions and/or the auction Participant has not completely or partially fulfilled the obligations agreed with the Purchase Agreement of previously auctioned object.

4. Auction Procedure

4.1. The system of the Website registers the offered price (bidding) of each participant. Auction participant has available information about the last bid (current bidding price). By making bids, the participants gradually increase the price of the auction object by the end of the auction period. If a bid is made in the last minute of the auction, the auction period is automatically extended by one minute.

4.2. After the end of the object auction period, the Website system automatically closes the bidding option and announces the auction result (the object is or is not sold).

4.3. The course of the auction is recorded.

4.4. The Auction Organizers has the right, at their own discretion, to ban the auction participant from participating in the auction (including terminating his participation in the auction).

4.5. Uncertainties arising during the auction, which are not regulated by the auction procedure, the Auction Organizer reviews and makes a decision until the end of the auction.

4.6. It is considered that the auction participant, while participating in the auction, is fully aware of and is familiar with the real condition of the auction object in nature, as well as with all the necessary documentation related to auction object, the procedure for calculation and payment of purchase and commission fee, as well as the procedure for the execution of the Purchase Agreement of the auction object.

4.7. After successful bidding on the auction object, the winner of the auction receives an electronic notification confirming the fact of the auction of the object. The Auction Winner shall, not later than within three days after the mentioned notification has been sent to the auction participant, in accordance with the procedures specified in the Regulations, sign the relevant Purchase Agreement of the auction object which has been previously sent to the e-mail specified by the Aucion Winner. The purchase agreement is signed by the parties electronically (with a secure electronic signature) or in person.

4.8. The auctioned object is transferred to the buyers property, use and possession no later than after signing the purchase agreement of the auctioned object and payment of the purchase fee.

4.9. The auction shall be deemed not to have taken place if:

  • if a prohibited agreement between the participants of the auction is established, incl. there has been an agreement to prevent a participant from taking part in the auction;
  • the auction has been terminated due to communication disturbances and/or other disturbances or obstacles that do not depend on the Auction Organizer.