07 Apr Auction Property Conveyancing
We are noticing an increase in the number of properties being sold at auction. Since Auction Property Conveyancing goes hand-in-hand with this increase of instructions, we are hoping to make sense of what and why Auction Conveyancing is important, what to expect and what to look out for, if you are considering selling or purchasing a property through Auction.
There is good reason for sellers looking to follow this route to market, some of which are listed below –
- Cost effective – most auction properties being sold require the purchaser to pay the auctioneers costs
- Time effective – upon a successful bid at auction, contracts become legally binding immediately and the purchaser is required to complete the transaction in a set period of time. This naturally eliminates the usual void time involved in selling using conventional methods with no clear guarantee of the buyer completing on the purchase.
- Committed – expanding the above point and on receiving a winning bid, the purchaser irrevocably commits a deposit (usually 10%). Should the buyer later fail to complete the purchase, they will lose the deposit and further, the seller is free to remarket the property.
- Non-marketable titles – it is not uncommon sometimes for properties that were originally non-saleable to ‘crop up’ on auctions on the hope that they will find a buyer. This is not illegal or misrepresentation of information. Auction properties are almost always ‘sold as seen’ and therefore, once a buyer commits with a winning bid, the purchaser will then be contractually obliged to complete the transaction or forfeit the deposit if they can longer do so.
What you can expect when buying or selling an auction property?
Whether you are looking to sell or purchase at a property auction, the transaction must progress at speed. Our panel of experienced Property Lawyers and Conveyancing Solicitors regularly deal with sellers for some of UK’s biggest Auction Houses and their purchaser’s post-auction.
Speak to our Auction Property Conveyancing team on 0203 375 187 for a no obligation Conveyancing Quote and more information if you are considering buying or selling at auction.
Prior to auction, the sellers’ solicitor prepares a Contract Bundle which is made available by the auctioneers. Typically, the Contract Bundle will contain, Special Conditions of Auction, Title Deeds, Plans, any Protocol Information forms and miscellaneous documents the sellers might hold. Unfortunately, though a property might appear sound, structurally; this does not automatically mean that the property in question has a marketable title (the property might have a plethora title defects which could mean the property is unmortgageable etc).
It is therefore imperative that any prospective bidders (purchasers) have these contract documents professionally reviewed by a Conveyancing Solicitor before committing to the purchase as for reasons explained above, once you have committed yourself to purchasing the property.
Auction Property Conveyancing Process – following your auction
Assuming you have been successful at auction and have paid your deposit, contracts and the special conditions previously supplied becomes legally binding. More often than not, you are now legally required to complete the purchase in 28 days – failure to do so would inevitably mean you forfeit your exchange deposit. Our Auction Conveyancing Solicitors recognise both the sensitive and time critical nature of the transaction and will ensure these prescribed time frames are met. It is also worth noting that, given our track record of having dealt with similar transactions in the past, we have established relationships with Bridging Lenders who work closely with us in ensuring they are able to offer solutions to potential complications which you might not have originally accounted for.
Contact our team at Express Conveyancing on 0203 375 2187 to discuss how we may assist you, with your auction sale or purchase.