Auctions are full of unmortgageable, unregistrable and legally defective properties
28 day Conveyancing
Speed is key for auction conveyancing. Buyers exchange contracts, pay a deposit on the day of the Property Auction and must complete within 28 days. Standard conveyancing typically takes around 56 days, so you need a fast solicitor that can push your purchase through more quickly.
Our proactive lawyers are highly experienced at handling auction property.
Seller's Legal Pack
Homeward Legal act for sellers too.
If you are a seller wanting to assemble the legal documentation before an auction, or if you are an auctioneer looking for the rapid and accurate compilation of Auction Legal Packs, call us now for more information on how we can help.
Solicitors Pre-Auction Report (SPAR)
Auctions are full of unmortgageable, unregistrable and legally defective property. Legally defective property is often dumped via auction onto unsuspecting buyers. Unless a property's legal documentation is reviewed by a professional, you really have no idea what you are buying!
Our SPAR (Solicitors Pre-Auction Report) is a comprehensive report completed by a property solicitor which gives you ‘pre-bid peace of mind'.
Rapid Pre-Auction Surveys
Don't risk it - It isn't just legally problematic property that finds its way into property auctions. Structurally defective property is also common and buying without a survey is risky.
Frequently asked questions...
Find an auction online or in local papers and look into the houses you like beforehand. Get a solicitor to look over the seller's pack and view the property with a surveyor to check for hidden problems. Get your mortgage lined up and ready beforehand, then on the day, you'll need two forms of ID to bid, plus immediate access to 10% of the final property price (by cheque or banker's draft) if you win.
No, you can buy a house at auction with a mortgage. Most mortgage lenders are experienced with auctions and will get your funds ready in time, but you'll need to set it all up before you bid as when that hammer comes down, you'll need to cough up 10% immediately, and the rest of it usually in less than 28 days.
Not at all. If you keep your wits about you and consult a property solicitor, you can get yourself a real bargain home at auction. If you get an in-depth auction property survey done beforehand, you shouldn't have anything to worry about.
While auctions work on a “sold as seen/buyer beware” arrangement, you won't be buying completely blind. You'll have the seller's pack (often called a Legal Pack), which will include details of any legal problems which may affect the property, as well as details of existing tenants if you are bidding on a commercial property.
You can usually download an auction catalogue directly from the auction house's website, usually around seven days before the auction is due to take place. Sometimes you can request a hard copy, or you may find that companies such as Rightmove list their auction properties directly on the website for buyers to see before the auction.
You should definitely view the property before bidding and take your surveyor with you. This way you can guarantee the property doesn't have any hidden issues before you buy.
You can make an offer on any property before it goes to auction. We recommend that you speak with a solicitor before doing this as there may be issues that bring the asking price down.
You'll pay 10% of the final price on the day and the rest is usually due within 28 days. This means you'll need to complete all conveyancing and have your mortgage or cash lined up within this time. Friday's Move offers a guaranteed 28 Day Conveyancing package specifically for properties bought at auction.
Selling your property at auction often comes with a wide range of fees including: around 2.5% commission to the auction house, advertising costs, a portion of the auction room hire fees, admin fees, legal costs for creating a Seller's Pack and drawing up final contracts.
When the hammer falls, your top bidder has entered a legally binding contract that you both must follow through on. The buyer will have to pay 10% of the final price on the day of auction and pay the remaining amount within 28 days. If your buyer fails to pay the full amount by then, you have legal grounds to sue them for the costs of having to re-list the property.
Shop around for auction houses and choose one that is not only more established, and so can guarantee a large turn out on the day, but also make sure that you choose a specialist auction house with experience of selling the same kind of property.
You can sell your property quickly without much complication. Buyers can't pull out without heavy penalties and you can guarantee that the exchange will have gone through within 28 days. Sometimes you might be able to sell your property for more than the guide price if you get buyers in a “bidding war”, and if there is something wrong with your property which may affect its chances of selling on the housing market, you may find that it sells better at auction where many buyers are looking to renovate or buy to let.
The kind of property that sells well at auction are those in high demand which could attract many buyers, like London-based houses, also unique properties which are hard to value, properties which need to be sold quickly, or properties in a bad state of repair which need renovating.
You'll need to factor in your own conveyancing and survey costs, plus stamp duty fees if the property is over £250k. In some cases, there will be a buyer's premium to be paid to the auctioneer and you may also be charged seller's legal costs, search fees and auction fees. These costs should be listed in the Seller's Pack.
You will pay an administration fee and have the opportunity to contact any interested buyers in order to negotiate a sale outside of the auction room, or you can list the property in another auction, perhaps with a reduced reserve and guide price.