Our property auction lawyers and solicitors have extensive experience of acting for clients both buying and selling commercial and residential properties at auction. Property transactions at auction have increased by 60% since 1998, there can be some real bargains, and there are an increasing number of auction repossessions, but with high reward also comes higher risk and it is vital, whether buying or selling at property auction, that you have the backup of an experienced property lawyer with genuine experience of property auction transactions.
At a Property auction, contracts are legally exchanged, and both seller and buyer committed (and usually 10% deposit must be paid on the day) immediately the reserve price is met and the auctioneer accepts the highest bid. Consequently, a sensible buyer and his/her conveyancer/solicitor/lawyer and surveyor will have undertaken all the necessary checks and enquiries before the day of the property auction.
Practical considerations for buying at property auction are:
• Carefully check the general and special conditions of the auction contract
• Give consideration to the auction pack, including Home Information Pack, searches, replies to enquiries, and further considerations if leasehold
• Arrange an inspection or preferably a survey of the property prior to auction
• Check comparable property sales of the same type in similar area as recently as possible
• Double check whether VAT is payable on the purchase with commercial property
• Ensure that 10% deposit is available in clear funds
• Decide whether extra searches are advisable and if any of the information or searches provided by the seller out of date
• Consider whether replies to enquiries satisfactory or are there areas of concern
• Ensure funds are available to complete, if mortgage needed, survey position important and is mortgage in principle enough
• If the property is tenanted check all paperwork and status of tenancy and underlying tenancy documents
Selling at Auction
We will assemble all necessary documents for a full property auction pack in good time before the auction and anticipate the concerns or possible enquiries which might be raised by a buyer or his/her lawyers. The Home Information Pack will include an Energy Performance Certificate (EPC) a personal local authority search together with drainage and water search, the registered title and a Property Information Questionnaire (PIQ). There is additional information required in respect of a leasehold properties and again pre-planning by our experienced lawyers is vital.
At the Auction, once the hammer goes down on the highest bid, contracts are exchanged and quick completion usually agreed to take place within 28 days.
Please contact our specilist property auction lawyers and solicitors today by telephone or by completing our online property auctions enquiry form for immediate advice and/or a quote.
