When a property is sold at auction, auctioneers and sellers along with their solicitors and legal teams produce an auction pack. An auction pack contains title, property and contract information about a property and under what terms the property is being sold. They can also be known as legal pack auction, buyers pack, information packs etc. In this article, one of our auction conveyancing solicitors considers the merits having a legal expert provide pre auction conveyancing with an auction pack review.
What is an auction pack review?
An auction pack review is a service by which a legal pack auction expert in property such as a conveyancer or conveyancing solicitor will review all the documents provided in the legal pack for the property. They also may consider other information available to them about the property. A report will be produced containing their findings and highlighting risks so you can make an informed decision about whether to proceed with the purchase under auction conditions.
Why is it important to have an auction pack review?
Whether you are a seasoned property investor having bought and sold many properties, or this is your first time buying at auction, or even your first time ever buying a property, it is important to consider having a legal expert look at the property title. When buying under non-auction conditions, this happens as part of the conveyancing process and you have the option to walk away without being legally obligated to buy the property at any point up to exchange of contracts. When buying under auction conditions, you do not have this luxury. You are legally bound to complete the purchase once the hammer falls, or face substantial financial penalties. Even when buying via modern method auction, you are bound by a non-refundable reservation fee. By having a legal pack review, you are going into the purchase with your eyes open to any issues and have the opportunity to walk away before bidding and entering into a contract.
Different Types of Auctions
Most properties that are sold via auction are done so online. It is more common for auctioneers to offer online auctions rather than the traditional auctions held in large rooms with a physical auctioneer using a gavel for each successful bid. Even the large auction companies such as Savills now offer online auctions. There are still different types of auction, and it is important to understand the differences and how this materially affects you as the buyer. Traditional auction methods that are held online usually have shorter completion timeframes such as 14-28 days. There is also the modern method auction which is also held online, but involves a lengthier process with a 56 day completion timeframe. Having an auction pack review ensures you are sure of the method by which you are purchasing and what your obligations are under this method.
An auction pack review can help you identify legal risks
When completing an auction pack review, the conveyancer will consider the purchase from a legal point of view, both when it comes to the property title itself but also the contract under which you will purchase the property. The conveyancer will highlight any risks as the owner of the property, or risky clauses within the contract of sale which you may not have spotted yourself. An experienced auction conveyancing solicitor knows exactly what to look out for and can provide detailed information about the risks you face. Our article on problems with buying property at auction details more about the risk to consider
An auction pack review can help you avoid surprises
Sadly, it is not uncommon for legal packs to be incomplete or have missing documents, especially if there are particular circumstances surrounding a sale such as a probate property or repossession, where the property owner is not selling the property directly. An experienced auction conveyancing solicitor can advise on what is missing and what implications that has.
An auction pack review can help you understand financial obligations
There are always financial obligations when buying and selling houses, however when it comes to purchasing houses via auction, there are often additional fees that may not be easily spotted. Auction properties also come with contracts that contain costly penalties for delayed completions or certain circumstances that could arise as part of your purchase. Having an experienced auction conveyancing solicitor look over the legal pack will allow them to highlight these fees and contract terms so you can be prepared where necessary.
Speed and Expertise
An experienced auction conveyancing solicitor understands that speed is key when purchasing at auction. There are tight timeframes imposed with bidding, paying fees and completing all the legal work. Working with someone who is experienced at working at this kind of speed, and with expertise can really help you bid confidently and they can then guide you through the completion formalities thus avoiding any penalties.
What is the cost of auction pack review?
This is an important question we get asked regularly, what is an auction legal pack review cost? Auction pack review costs do vary depending on the complexity of the property and the time allowed. You would expect to pay less for a freehold property, than a leasehold for example. Prices often start from around £400. It is important to talk to your legal pack auction conveyancing solicitor about the fees both for the legal pack review and completion work after bidding to ensure you fully understand what you are paying for. Availability also tends to vary especially when there are several auctions running at once, so it is important to speak to the conveyancer at the earliest opportunity to ensure the best possible chance of having a review completed by and experienced conveyancer and understand what is the auction legal pack review cost.
Where to get an auction pack review?
You can speak to your local solicitor and those offering auction specific services. At Express Conveyancing, we offer services for auction properties both before bidding, as an auction pack review, but also the completion formalities if you have been successful either after a review or without having had a review carried out. We provide fully comprehensive reports with all our auction pack reviews and you find out more by visiting the property auction page of our website.
Conclusion
In summary, whilst it is optional, it is recommended that you consider having an auction pack review completed before bidding on a property being sold at auction. An experienced auction conveyancing solicitor can provide vital information about risky contract clauses, fees, property title defects, financial obligations and missing information. It can be a worthwhile investment even for those experienced at buying property at auction. At Express Conveyancing, our team are on hand to discuss our auction services with you and provide a no obligation quotation for your auction pack review and completion conveyancing once successful. We have compiled a top 10 checklist for preparing to purchase property at auction.
Selling Property at auction?
Are you considering selling property at auction? Our team at Express Conveyancing are also experienced at handling the sale side of auctions. Get in touch with our team today to discuss selling property at auction for a no obligation quotation and a chat about our auction sale service.
