Our conveyancing solicitors regularly advise buyers considering buying a property at auction. Often we are instructed at short notice and provide flexible, rapid, reliable and cost effective advice.

We can also assist if you are considering selling your property at auction.

Key property auction issues

• The auction pack – when buying you will have to rely on the documents provided by the seller to the auction house. It may be difficult or impossible to get answers to any additional enquiries. It’s key to consider the auction special conditions and to check auction pack has enough information on key issues,
• If buying a leasehold property at auction there will be additional information and documents which are key including information about service charges, insurance, possible major works.
• Finance – how is the purchase being financed? If not purely from the buyer’s resources, how will completion be funded. Understanding the risks and whether there may be issues and risks with mortgage lending are vital. We are also experienced in dealing with bridging lenders if that is a possibility.

The auction process

The conveyancing process when buying a property at auction is essentially the same as other property conveyancing, The process is 2 stages, exchange of contracts and completion. Buying at auction, you exchange when your bid is the highest bid at auction. Given as a buyer you rely on only the documents and answers provided before the auction, the risks are inherently higher when buying a property at auction.

After exchanging contracts you are committed and must pay the deposit which is usually 10% of the purchase price. If you fail to complete you will face losing your deposit and/or potentially other claims for damages. You will not be able to pull out if you get a survey or valuation which suggests the property is worth less than you agreed at auction or of something is flagged on a survey as a structural or other problem with the property.