Express Conveyancing offers a range of fast, high quality and low cost auction property conveyancing services in London and nationwide. Read on to find out more about buying an auction property and how we can help you, or call us on 020 3375 2187 to speak to one of our property solicitors right away.
It is imperative you have a Pre-Auction Title Check carried out on all properties you wish to bid on, prior to the auction. Please read our relevant article on the subject by clicking here.
Buying an Auction Property
Buying a property at auction is a fantastic way to bag a bargain. There are other advantages too. It is fast, it is transparent and, since it isn’t for the faint-hearted, it cuts out many of the competitors that you would be bidding against on the open market.
Like all ‘too good to be true’ deals, there are downsides to purchasing at a property auction. Auctions are often full of unmortgageable, unregistrable and title defective properties. You also need to bear in mind that you will need to have your 10% deposit ready to hand over on the day of the auction if your bid is successful. Contracts become legally binding the moment the hammer falls.
You need to be particularly cautious if you plan to pay for the property with a mortgage. Standard property auction terms usually give you 28 days to pay the balance and arranging a mortgage within that timeframe can be tricky. If you miss the deadline for completion, you may have to pay penalties as you would on a conventional purchase. You may even forfeit the full 10% deposit, so check contract terms carefully prior to the auction. You should always make sure you have an Agreement in Principle with your chosen lender before placing a bid, and you should also compare conveyancing quotes before you go to auction so that you can get the ball rolling immediately if you win.
Why is there a 28 day Completion Deadline?
The average property purchase takes at least 6 weeks from sale agreed to exchange of contracts. During that time, either party can pull out, change the price or drag out the process. The 28 day completion clause in auction property contracts protects both buyer and seller from all of those possibilities and ensures a swift, problem free transaction. The compensation for the inconvenience is the (often) lower purchase price. When you compare conveyancing quotes, keep in mind that choosing a fast, experienced property solicitor through Express Conveyancing can help you meet that deadline and avoid financial penalties. You should also bear in mind that whilst online conveyancing firms offer low prices, they may not have the expertise or speed needed to get you through the full conveyancing process in good time.
What is the Seller’s Legal pack?
The Sellers Legal Pack is similar to the Draft Contracts Pack in a standard transaction. The biggest difference is that the auction pack will usually contain much more information than a standard contract pack.
We at Express Conveyancing act for sellers too. If you are a seller thinking of taking your property to auction or if you are an auctioneer looking for bulk compilation of legal packs then we can help. Contact us today to find out how our Conveyancing Solicitors can help you on 0203 375 2187.
Going to a property auction?
Bid with confidence once you have carried out a legal check on the property you are buying.
As most of the properties going on to be sold in auctions have unmarketable titles, auction properties can be a legal mine field. Our property solicitors offer great value pre-auction title checks upon which you can bid with confidence. Contact us today to find out more about our pre-action checks service by calling 020 3375 2187 or request a call back from one of our experienced team.