Guide to Buying
Our specialist auction conveyancing solicitors are here to help
So I’m sure most of us have watched Homes Under the Hammer. In the United Kingdom, buying a property at auction has become increasingly popular. It offers an opportunity to purchase a property quickly and potentially at a lower price than on the open market. However, for those who have never bought at auction before, it can be an overwhelming experience.
As auction solicitors specialising in all apects of conveyancing and in particular auction property conveyancing, we have put together this guide to help clients understand the conveyancing process when buying property at auction. We will provide tips on what to look out for and what to avoid, ensuring a smooth and successful purchase.
What is Conveyancing?
Conveyancing is the legal process of transferring ownership of a property from one party to another. It involves various tasks such as conducting property searches, reviewing contracts, and handling the exchange of funds. In a traditional property purchase, conveyancing can take several weeks to complete. However, when buying at an auction, the process needs to be expedited as there is a strict timeline for completion. For a complete guite to conveyancing read our blog “What is Conveyancing”
Need Our Help?
Contact us today to discuss how our expert conveyancing solicitors can take care of your residential property sale and purchase.
Before the Auction
Before attending an auction, it is essential to do your due diligence on the auction property you are interested in. This includes obtaining a copy of the auction legal pack from the auctioneer.
The auction pack will contain details about the acution property and contains vital information for the auction property solicitor and will contain some or all of the following:
- The sale contract
- The title plan
- The register of title
- Conveyancing search results
- Relevant protocol; forms
- Leaseholder pack or management pack (if relevant)
It is highly recommended to have a specialist auction solicitor review the legal pack before the auction. A specialist auction solicitor with auction converyancing experience will be able to review the documents and highlight any potential issues. This can save you from making costly mistakes during the bidding process.
Need an Auction Pack Reviewed?
Our Auction pack review prices start from £350 + VAT. Contact us to get a quote for your auction.
The Different Types of Auction
There are two different type of auction.
The Traditional Auction and the Modern Auction
The main difference between the traditional and modern auction is the time for exchange and completion. With traditional auctions exchange is deemed to happen at the fall of the auctioneer’s gavel. You will have to pay a deposit on the day of the auction to secure the property.
With a modern auction you generally have 28 days to exchange contracts and pay a deposit and a further 28 days to complete.
No matter what type of auction you are bidding in, you will need a specialist auction solicitor to deal with the complexities of auction property conveyancing. Don’t delay instrcuting a specilist auction solicitor, the dealines for auctioncovneyancing are tight and your auction solicitor will need time to provide the best service to you.
For more information on the different types of auction read our guide.
At the Auction
On auction day, it is essential to arrive early and register with the auctioneer. It is also wise to set a maximum bid limit and stick to it, as emotions can run high during bidding wars.
If your bid is successful, you will be required to sign the contract and pay a deposit on the spot. This legally binds you to the purchase, so it is crucial to have all the necessary funds in place.
Since timescales are very tught in an auction property puchase, its is a good idea ot have your auction covneynacing solicitor ready before the auction. Research your chosen auction solicitors and get quotes for the auction covneyancing well ahead of the auction day
After the Auction
Once you have exchanged contracts, you will enter into a legally binding agreement with the seller. From this point on, your solicitor will handle the remainder of the conveyancing process, which typically takes 28 days for completion.
During this time, your auction solicitor will conduct final property searches and review the title deeds to ensure everything is in order. They will also handle the transfer of funds and arrange for the property to be registered in your name with the Land Registry.
As already stated, time is tight with auction property purchases, so please do not delay in letting your chosen auction solicitor know once you have won your auction.
Tips for Buyers
While buying at an auction can offer opportunities for a great deal, it is essential to proceed with caution. Here are some tips to keep in mind:
- Have all necessary funds in place before attending the auction.
- Do your research on the property and its value beforehand.
- Have a solicitor review the legal pack and highlight any potential issues.
- Stick to your maximum bid limit to avoid emotional bidding wars.
- Check the term of any leasehold properties you buy at auction. Anything under 80 years may be difficult to mortgage.
- Be aware of any additional costs, such as auctioneer fees and VAT.
What to Avoid
- Bidding on a property without having viewed it first.
- Not having all necessary funds in place before attending the auction.
- Failing to review the legal pack or seek legal advice before bidding.
- Getting caught up in emotional bidding and going over your maximum bid limit.
Buying a property at auction can be an exciting and rewarding experience, but it is crucial to approach it with caution and knowledge. Our team of specialist auction solicitors have extensive experience in the auction conveyancing process for auction property purchases and can provide expert guidance and support every step of the way. From reviewing legal packs to transferring funds, we are here to ensure a smooth and stress-free transaction . Contact us now to see how we can assist you in your auction property purchase. Afterall, a successful auction propertypurchase is all about being well-informed and prepared. Let us help you make the most of this opportunity and secure your dream property. Don’t hesitate to reach out to our team for any further questions or assistance. We are here to guide you through the entire
Auction Sale And Purchase FAQs
- Unusual properties that are difficult to value.
- Properties that require significant renovation work.
- Properties sold via a mortgagee sale.
- Tenanted properties, including those that are subject to the tenants’ right of first refusal under the Landlord and Tenant Act 1987.
- Where the seller has a mix of properties of low and medium quality. Low reserve prices set on the poorer quality homes may encourage people to also bid on the better-quality properties with higher reserves.
- Properties that require planning consent for their use.
The seller’s solicitor will prepare an auction catalogue that contains the particulars of each property (also known as ‘lot’). The information contained in the catalogue includes:
- The address and a description of the property.
- The energy performance indicator.
- Details of any leases related to the property.
- The property’s guide price.
- The seller’s solicitor’s details.
Case law has illustrated that if the catalogue contains inaccurate information the seller may be liable to the buyer for damages. Therefore, it is imperative to instruct an experienced solicitor when selling your property via auction. At Hodders Solicitors, you can trust that we will carefully check every detail of any documentation and correspondence to ensure it is correct.
When the gravel falls! You must, therefore, have visited the property and have a full survey done before auction day. In addition, have your solicitor check over the legal pack prepared by the seller. This will contain information about the title and property searches.
If you do change your mind, you will lose your 10% deposit which must be paid on the day of the auction. You will also be required to pay any applicable auction fees.
By instructing us to manage your residential property auction sale or purchase you can be confident that all the essential legal checks and documentation have been meticulously prepared and verified. We are dedicated to providing exceptional customer service our ability to quickly deal with complex property matters is well known throughout the Central and Greater London area.
Get You Free Auction Quote
Click below to find out more about how we can assist you with drafting and negotiating commercial property tenancy agreements