How it works for the buyer
Step 1 - your contact information
Any visitor to Global AVX can browse current listings without an account. However, to make a bid on an open listing you must have an active and fully verified account. You will require the following to get started
- Photo ID
- Utility bill dated within the last 3 months
- Email address
- Contact number
Step 2 - get fund approved
Once you have provided your contact details, you will be sent a confirmation email. Next you will verify your account via email and confirm you have read and understand the terms and conditions. We will then bring you through the fund verification process. (You will not be able to place a bid until we have completed this process) Your financial institution / bank / lender will need to provide proof of available funds held in your designated account – this can also be provided from your designated escrow account. Global AVX will need authorisation from the account holder to verify the contents of the proof of funds.
Once this process is complete you are now fund approved and you will see this symbol appear on your Global AVX account. The account holder can now place bids up to the limit of the fund confirmation.
Step 3 - place your bids
Once the account information has been verified and you are fund approved the account holder can now place bids on aircraft up to the value of your fund approval. Bids are anonymous. When you bid you will be given a randomised user number for each individual listing bid on.
Step 4 - if your bid is successful
If you are successful in a bid the listing will be listed as ‘sale agreed’. The escrow account will be notified immediately that funds are to be held pending the close of the sale. The sale must complete within 2 months of the close of the auction. In this time contracts will be exchanged between buyer and seller and viewing of the aircraft will take place in this period.
How it works - For Brokers
If the account holder is a broker purchasing on behalf of a client, the broker may have one account or several accounts. However, proof of funds will be required for each client and bid. If the broker has several clients, the broker will provide the following for each client:
- Written agreement between broker and client
- Contact details of client to verify same
- Proof of funds for the specific client
When each broker client account is verified, the broker can bid on a listing but must select which client he/she is bidding on behalf of and as such the bid amount will be subtracted from that specific client’s available funds.
How it works for the seller
Step 1 - register with Global AVX
Register an account with Global AVX
Step 2 - upload aircraft information
This is where the seller uploads all the information on the aircraft via photos and videos. Please note that some fields in this section are mandatory. All legal documents
Step 3 - when do you want to open the bidding
Once the seller has created a listing and is happy to advertise it, the next decision is when to open and close the bidding window. The seller places a minimum reserve on the listing. As with every bidding platform, if the listing does not receive a bid above the minimum reserve, inside the bidding time window, the listing will automatically be taken down and the seller will have the option to re-list the aircraft.
Step 4 - when the bidding window opens
Once the bidding has commenced, i.e the bidding window has opened, the listing cannot be taken down if there has been a bid on the listing unless the bids are below the reserve of the listing. You are provided with a real-time live feed on your listing which allows the seller to see what has been bid, by whom and when.
Step 5 - when the bidding window closes
Communication between the buyer and the seller begins and they exchange contracts, arrange for a viewing of the aircraft, and fulfil any other criteria that needs to be fulfilled to their satisfaction. Global AVX assists in this process.
Step 6 - once sale is complete
Global AVX will mark the listing as ‘sold’
Please also note the following important information
The parties are bound once the highest bid has been accepted
Once a sale has completed funds will transfer from the buyer escrow account to Global AVX escrow account and net funds will then be forwarded on to the seller. The sale will be deemed to be closed once full funds are received by Global AVX
The fund approved bidding rule is simple, reliable and saves time
Buyer ‘A’ is fund approved for €4 million. Listing number 123 is €2 million. Whilst this bid is in place (and yet to be accepted, rejected or outbid), Buyer A is now only fund approved for €2 million.
This is to prevent a buyer from bidding on more listings than they are fund verified for.
Should Buyer ‘A’ be successful and his offer on listing 123 for €2 million be accepted, Buyer ‘A’ can now only make offers on listings up to the value of €2 million. If Buyer ‘A’ wants to add more funds to make more bids on aircraft, further fund approval will be required.
Should a sale not complete, Buyer ‘A’ will be fund approved for €4 million, as if no bidding had occurred. Following confirmation from the escrow account provider, the seller of listing 123 will have the option to re-list the aircraft.
The sale occurs through the currency of the Seller
This is the default position of sales on Global AVX. However, it remains open to the seller to choose a different currency to conduct the sale.
Each aircraft listed on the platform for sale must have valid and sufficient insurance. The buyer is responsible for insurance once the purchase is complete. Please note the terms of any previous policies and local regulations. Both sellers and buyers are advised to consult their relevant insurance policies/brokers in relation to the delivery of the aircraft once the sale has completed.
How it works for the auctions
Deciding to change your listing from a standard listing to an auction listing comes with many advantages. Auction helps to dictate market price, it dictates what the market truly values your asset at and what buyers are willing to pay – not overpriced and not under-priced – just right. Combined with our transparent process and provision of Transparency Reports, the auction platform ensures that sellers/brokers/agents have met their professional obligations using a transparent and accountable format.
Step 1 – Create Account
A user must create an account – to do this click login/join in the top right corner and follow the simple steps. Remember to check junk/spam mail for your email verification email.
Users may prefer to set up a Broker Account. Setting up a Broker Account allows several users from the same organisation to list assets and set auction dates etc. A Broker Account ensures that the brokers contact details are also shown on the listing page (not that once an auction has started such broker details will not be visible to other users). As such, if you decide to create a Broker Account, your contact details such as name, email, number, etc, will be displayed for other users to contact you in relation to the listing.
To set up a Broker Account – please contact email@example.com and we will be in touch shortly. Once a Broker Account is set up, users from that organisation can request access to be listed as a Broker for the Broker Account.
Step 2 – Create a Listing
A User can decide to (a) create a listing for auction straight away or (a) create a standard listing and then change it to an auction listing at a later point. – note when creating a listing – setting it to draft will allow you to amend it at a later date and not have it published yet, and published will have the listing Live on the site.
- Once you have created your account, click on listings in you account and create new and select Auction as the listing type. You will be required to set an asking/reserve price – please familiarise yourself with our terms and conditions in advance of setting such a listing. Once you have created your listing, in your account click on new auction – here you will see the serial number of the aircraft – set the start date (and time) and end date (and time) of the auction window you wish to set – again please obtain advice in relation to the length and when to set an auction window. Once an auction window has been set, it will be in draft form until authorised by our admin team or your Global AVX appointed liaison.
- If you have already created a standard listing and would like to set it to an auction – edit your listing in your profile and set it to auction at the top of the listing. Once this is done, ensure you have set your reserve price and update listing – then follow the above steps from (a) and wait for the auction to be approved/published by our admin team.
The approval of the Auction is subject to the terms and conditions of our site and will require the seller to sign an Engagement Letter with Global AVX. Once the Engagement Letter has been agreed and there are no issues with your draft auction, the Auction will be approved and will go Live in accordance with the set window criteria.
Step 3 – How the Auction Works Once Approved
Your listing will be on our platform for a period before the auction window commences – this allows the listing to gain traction, for you (your agents) to market the asset and for potential bidders to conduct their due diligence. Prior to the auction window opening, interested users will go through a fund verification process with our admin team. This fund verification involves the user submitting documentation to the effect that they have sufficient funds/funding to meet (at minimum) the reserve price of your listing. Once this is verified, the user will be required to place a certain percentage of funds on account (typically 2% of the reserve price), these funds will be held in trust by the Global AVX appointed fundholder. The user will be required to complete an Engagement Letter with the Global AVX appointed fundholder. The Global AVX appointed fundholder, will then hold the funds on account for each approved bidder for a given auction pending completion of the Auction window.
Such users are then authorised (subject to our Terms and Conditions, the Process Letter (a copy of which will be provided prior to such approval) and the terms of the Engagement Letters) to place bids up to their verified amount, as such they will be granted access to bid on your listing. Each step in this process will be noted on the Transparency Report at the end of the auction window.
Once an auction window commences, only fund verified and approved users will be able to place bids. When the auction window is coming to a close and a new bid is placed within 1 hour of the window closing, the auction window will be extended to 1 hour remaining. This will continue to occur until there are no more bids and the window closes.
Step 4 – Completion of an Auction Window
When the auction is complete, the underbidders’ funds held will be returned to their designated accounts by the Global AVX appointed fund holder as per their Engagement Letter. The successful bidder’s funds will be held by Global AVX appointed fund holder pending completion of the transaction as per the Engagement Letters. The Seller and the successful bidder have two business days to sign the relevant contracts via electronic signature (or in hard copy if within same the jurisdiction) and also to transfer to the parties’ agreed escrow account the remaining deposit as per contract.
The funds on account for the successful bidder will be held pending completion of the transaction and will be administered as per the Engagement Letters of the parties.
If there is no successful bids placed within the window (bids fell short of reserve price), the window will close allowing the user to re-open a new window at a later date. In such a case, all funds held for each of the approved bidders will be returned as per their Engagement Letter with the Global AVX appointed fund holder. See the fund flow chart here.
Note: Please note that you are required to ensure the validity and accuracy of the documentation, images, data and descriptions of the asset that you are uploading. Global AVX does not and cannot confirm the validity, accuracy or authenticity of the information uploaded by third parties/users. Please contact your relevant advisors to conduct due diligence.
Note: Once an auction window commences, you as the seller of the aircraft confirm that the asset is available for sale for the term of the window. i.e. you are not able to sell the aircraft through any other medium once the auction has commenced. The asset must remain available for sale for the entirety of the Auction Window.
Note: the auction details (including window period, reserve price or description) cannot be amended once the auction has commenced. If you become aware of a defect or inaccuracy please contact us at firstname.lastname@example.org or through your Global AVX appointed liaison immediately.