Auction Legal Pack Review And Our Top 10 Preparation Checklist for a Property Auction
Auction-Legal-Pack-Review

Auction Legal Pack Review And Our Top 10 Preparation Checklist for a Property Auction

Are you looking to purchase a Residential or Commercial Property at Auction? Please visit our Auction Property Page for details on what you can expect and how we can assist with an Auction Legal Pack review (very important), prior to your auction.

An Auction Legal Pack review entails a qualified Conveyancing Solicitor or Property Lawyer, reviewing the Title Deeds your Auctioneers would have made available (this information is always made available albeit in a limited form) prior to the Auction date. You will be expected to part with a significant deposit upon a successful bid at Auction which contractually is the same as you exchanging Contracts on a conventional Property transaction; i.e. you are legally committed to purchasing the Property. If it later transpires that the property you have purchased has a non-mortgageable or non-marketable Title, you will either have to raise money from a Bridging Loan (at a significantly higher interest rate) or risk losing the deposit you have already paid plus further costs. A Pre Auction Legal Pack review will reveal any onerous clauses or conditions on the title and our expert Pre Auction Conveyancing Solicitors or Property Lawyers can quickly advise if the Property is worth bidding on (or more importantly safe to bid upon).

Our Top 10 Preparation Checklist for a Property Auction is:

(1) Research is key

This goes without saying but research is always key! Though Auctioneers come in all shapes and sizes, they will always publish an Auction catalogue at least a few weeks in advance. This is naturally where a quick and savvy Conveyancing Solicitor comes into play. It will also be quite clear from the information supplied on the Auction Legal Pack or Pre Auction Conveyancing Pack as to the reasons for the sale. Most Repossession Properties and/or Sale by Probate etc end up in Auctions, but unfortunately, it is common for other, not so marketable properties to end up in the Auctions too.

(2) Do you know what to expect at a Property Auction?

It is not a bad idea for you to visit at least a couple of Auction houses prior to going into bid without knowing what to expect. As you probably have seen on some popular Auction television programmes, when the Auctioneer starts the bidding, the actual Auction only lasts a few minutes at most. It is important for you to know how quickly you have to react and also to see what it is like and how most buyers get carried away with their bids to a point where the original lot which would have looked very lucrative on the basis of the guide price, no longer is.

(3) Pre Auction Conveyancing Pack

As we have briefly mentioned above, prior to the date of the Auction, Auctioneers always make an Auction Conveyancing Pack available. It is imperative that you have this information reviewed either by a Conveyancing Solicitor or Property Lawyer even before considering if the property is suitable to bid on. Our Pre Auction Conveyancing Check service can act quickly by having a Conveyancing Solicitor review and prepare a report for you to advise in simple terms if the Property or Properties you are looking to bid on are worth considering.

(4) Viewings

Almost all Auctioneers hold at least a group viewing prior to the Auction, however since your Conveyancer never really has sight of the Property, it is virtually impossible for them to comment on the physical aspects. Ensure you view the Property at least once prior to the Auction. Remember, just as it is possible for the Property to look structurally sound but have a completely unmarketable title, it is also possible for the Property to have a perfectly marketable title (as per your Conveyancer) but have significant structural defects which will unfortunately and inevitably be your responsibility on completion.

(5) Understand what the Guide Price is

As the name suggests, the Guide Price is mainly used to give potential bidders a feel for what the sellers are expecting and also what the Auctioneers feel the asset is worth. This does not necessarily mean that the Guide is a true reflection of the Reserve Price. It is very common for Properties to regularly be sold for significantly higher prices than the Guide. Keep your options open – shortlist a few Properties from any given Auction than concentrating both efforts and all your spending power on a single unit. This is a classic example where bidders regular over bid.

Auction Legal Pack Review And Our Top 10 Preparation Checklist for a Property Auction Express Conveyancing(6) Do you have funding in place?

Upon a successful bid, you will be expected to pay your 10% deposit (unless otherwise stated) and completion will be fixed for 28 days from that point onwards. Since your successful Auction bid is classed a legally binding contract, you will be required to complete the transaction irrespective of what your circumstances are within the set time period. It is therefore imperative that you have a mortgage offer in principle (this is similar to a credit note) giving you an indication of how much your Lender is prepared to lend you, subject to a successful valuation on the Property. Failure to have this in place would result in instances where you will be required to seek short term lending options such as Bridging Finance (far more expensive at all stages, i.e. application fees, Solicitor costs and monthly interest rates). You can read more about Bridging Finance here.

(7) Do you need a Property Survey?

The Author of this article has seen certain referencing documents on the internet advising potential bidders to commission property surveys as well. We do not see this being either necessary nor practical (not taking into account the cost element). This does not however mean that you cannot get a good understanding of what the current market conditions are in the vicinity of the property you are looking to bid on. Resources such as Zoopla or Rightmove can give a good indicative price of recently sold properties and their visual conditions.

(8) Have you done your maths right?

Did you know that most Properties sold at Auction are riddled with additional costs such as Auctioneers, Sellers legal costs, further charges, Mortgage and Valuation costs? You will also have to account for your personal costs for Conveyancing and also the necessary evil – Stamp Duty. You can use our Conveyancing quote calculator to generate accurate costings (you as the buyer) so that you know what your maximum spending threshold is.

(9) Be responsible with your bid

Carrying on from the point above, make sure you stick to your maximum spending threshold. It is better to lose out on a Property you like knowing you will be stretching your budget too thinly than to get carried away with a Property and committing 10% + costs to later find out that you are unable to bridge the gap between the two; inevitably losing your deposit. Though this might sound farfetched, unfortunately, it isn’t and happens regularly.

(10) And the day is finally here

Assuming you have followed the steps outlined above, you should be more than ready and prepared for the Auction. The Auctioneers would usually run through the Properties in Lot order but tend to conclude bids quickly. Pay attention as it is easy to miss off the lot you are intending to bid on. Auction Houses are large/noisy places and you need to think quickly on your feet (without getting carried away). Your Auctioneers would have requested you bring along with you certain pieces of Identification, both photographic and proof of address. Upon your successful bid at the Auction, you will be required to pay your deposit there and then and pass your Solicitors details so that formalities can commence immediately.

Express Conveyancing has a panel of specialist Auction Property Conveyancing Solicitors based in Manchester, with a nationwide reach. Our experts can advise both pre and post Auction. Contact our team on 0203 375 2187 to discuss how we may assist you.

What our clients say

Great value for money. Everything went smoothly and I was very pleased with the service provided
Rachel Whitfield
Rachel Whitfield
20:59 12 Oct 18
Excellent! Very responsive, and really helped to push the purchase. There were unexpected delays during the process, but Anthony really helped to reassure me that he was doing everything he could to progress the sale. Ultimately, it all worked out in the end, and I would highly recommend! I would also recommend for auction purposes.
Sean Stevens
Sean Stevens
09:14 21 May 18
Very happy customer. Understanding of our needs and recommended a really fantastic solicitor.
Jack Hearne
Jack Hearne
17:49 12 Oct 18
I have just completed the purchase of my flat with them. They were recommend by the estates agents Phillip Arnold and they were fantastic. My case was handled by Milena who was really helpful and always available on the phone. The online system is also really easy to use. If I buy or sell a property I will definitely be using them again.
Sharon Kelly
Sharon Kelly
18:27 20 Dec 17
I used this service following a recommendation. The online case tracker worked really well. I would recommend this service as it's vital in the coordination between Estate Agencies and between Solicitors. The service proved invaluable in helping progress the conveyancing work efficiently and effectively. Completed the transaction just before Christmas having instructed the Solicitors on the 4th.
Shelly Harrill
Shelly Harrill
16:30 19 Dec 17
Excellent Service. Final Price same as quoted.
A Google User
A Google User
14:26 19 Dec 18
Have used them twice. Both times completion happened in less than 4 weeks, even over Xmas! Totally amazing. They take the stress out of the whole process.
Daniel West
Daniel West
13:04 21 Dec 18
Excellent Service. Final Price same as quoted
Parsa Khamooshi
Parsa Khamooshi
15:54 21 Dec 18
Being a first time buyer they guided me smoothly through the whole process of moving into my first home. Very professional and economical.
Uday Seth
Uday Seth
12:31 24 Dec 18
Express Conveyancing have been excellent in the handling of my recent house sale and purchase. Would highly recommend
James Ellis
James Ellis
11:43 30 Apr 19
Express Conveyancing have been excellent in the handling of my recent house sale and purchase. Would highly recommend
Michelle Preston
Michelle Preston
12:20 30 Apr 19
ThanksThanks for handling my sale and purchase. No complaints from me. Rebecca was regularly on hand to help with my queries and deal with issues.
Claire Miles
Claire Miles
17:48 07 May 19
I bought my first home in South London with Express Conveyancing . Great professional service, I was regularly updated and looked after. Top marks, 100% recommendation from me!
Dale Griffiths
Dale Griffiths
15:58 02 May 19
Good service and happy with the conveyancer
Chris Jenkins
Chris Jenkins
22:01 17 May 19
Great service from start to finish. Was great being able to see progress online! Very quick and efficient! All staff were helpful. Highly recommend
Reece Moseley
Reece Moseley
06:20 30 May 19
I would highly recommend them. They deal with any queries promptly and efficiently. Would definitely use them again.
Sahar Dalini
Sahar Dalini
09:13 10 Jun 19
Fair prices good efficient service
Sue Batchelor
Sue Batchelor
18:46 01 Jun 19
I would highly recommend them. They deal with any queries promptly and efficiently. Would definitely use them again.
Sahar Dalini
Sahar Dalini
09:14 10 Jun 19

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