Property Auctions give buyers and sellers a different way to buy or sell a property. There are two methods available and here we discuss both, with our comments on the legal side and the legal implications of each method.
The Modern Method/Online Auction
This is a popular way of selling a property and is often termed as the ‘Modern Method of Auction’.
This is conditional when an offer or winning bid has been accepted. A buyer pays a fee of usually 3.5% or £5000 to secure the property and then the buyer has 28 days to exchange contracts and often a further 28 days to legally complete.
This is also a popular method of selling a property and is often termed as a ‘Traditional Auction’.
This is unconditional so when the gavel goes down, contracts are exchanged at the auction and in the contract, there is a legally binding completion date, usually 28 days later.
However, we have seen contracts exchanged unconditionally at auction with a completion date only 14 days later, this is often when the seller is a mortgagee in possession.
Selling a Property at Auction
We prepare the auction pack for both methods of auction.
Our work on your behalf work does not alter whichever method you choose.
We ask you to fill in a Fittings and Contents Form and a Property Information Form, we also ask you for any guarantees/warranties and any other documents that you have regarding the property.
For registered land we download your title deeds from Land Registry and prepare the contract for sale.
In an auction pack the seller provides the searches so we also ask you for search fees so that we can obtain searches in advance on your behalf.
Once we have prepared the auction pack we usually upload the pack electronically through your providers portal together with providing all parties (buyer’s solicitor, agent and client) copies by email.
Our pre-auction service does not stop there.
We are available by telephone and email to answer any questions that any prospective purchaser may have and any questions that may arise from a buyer’s solicitor reviewing the auction pack.
Once the property has sold at auction we see the conveyancing through to completion.
Buying a Property at Auction
If you see a property at auction that you would like to purchase, we would happily review the auction pack documents on your behalf and have a detailed discussion by telephone appointment or face to face meeting.
We do not charge for this service on the basis that we would charge you a normal fee for your conveyancing if you are successful with your bid at auction.
Please feel free to contact us prior to choosing to sell or buy at auction.
We are familiar with both methods and we have acted for many clients with different scenarios and needs.
We have acted for clients selling and buying residential and commercial properties at auction and we have also acted for clients buying at selling land at auction.