Property News

Going once, going twice……..Buying property at auction and, why you need an Auction Conveyancing Solicitor

Property auctions can be a great way of bagging a new home at a rock bottom price - and avoiding the disappointment of a sale falling through at the last minute. Increasingly popular with people looking for a property a little out of the ordinary, auctions are when potential buyers bid on a property, with the winner being the highest bidder and, unlike traditional property sales, the sale is confirmed the moment that the hammer falls. As with a traditional purchase, you’ll need to find yourself a good Conveyancing Solicitor - and one who specialises in auction property conveyancing.

What’s the difference?

When buying a property in the traditional way, the actual sale is not confirmed - or legally binding - until contracts have been exchanged and signed. Between the offer being accepted and the ink drying on the contracts, your Conveyancing Solicitor will be busy making checks and searches to make sure that all is above board before proceeding with completion.

When buying a property at auction, the sale is considered complete and binding the moment that the hammer falls - meaning that the winning bidder is then legally required to take all steps necessary to complete the purchase.

In terms of conveyancing, this means that you and your solicitor will have to make all the necessary checks before the auction even begins. As the purchaser, this means that, well before the auction, you will need to look at the catalogue to find possible properties, view the properties that interest you, organise a survey and, make sure that you have a mortgage or bridging finance in place before you set foot in the auction house.

For your auction conveyancing solicitor, this means that he or she will need access to the legal pack with plenty of time to spare in order to highlight any potential problems. He or she should also make you aware of all of the sale conditions before you make that first bid.

If you’re thinking of buying a property at auction, it’s vital that you instruct an auction conveyancing solicitor with plenty of experience as mistakes can result in you buying a property with major flaws, extortionate ground rent, lack of planning permission and other disastrous conditions. In certain extreme cases, this could also potentially lead to you losing the full deposit plus any further costs your auctioneer might have incurred.

Your checklist for buying a property at auction

• Find a great auction Conveyancing Solicitor with plenty of experience. Speed is now of the essence.

• Get hold of the auction legal pack and share this with your solicitor.

• Secure a mortgage or bridging finance.

• Have a survey been carried out on the the property you’re interested in?

• Make sure you know about all the costs involved - the auctioneer may demand a buyer’s premium which is often equivalent to 1. 5% of the sale price. Your seller may also ask for the auction fee and conveyancing work to be paid for by the buyer - always make sure that you know what’s involved beforehand.

• Do a trial run - visit a property auction as an observer to make sure that you understand how it works.

• Arrive fully prepared - On the day of the auction, you will need a couple of pieces of ID, plus a cheque to the amount of 10% of the buying price. .

Buying at auction can be fun, rewarding and, at times, lucrative - just make sure that you know how it works before you start; and that you hire a Conveyancing Solicitor who knows the auction world back to front!

You can sign up to our newsletter and join Nethouseprice’s community of over 190,000 members who get regular property tips, relevant offers and news, click here  http://nethouseprices.com/auth/user-register