Property Auction Solicitors.
Receive an instant quote now.
Buying or selling a property through auction can sometimes be a faster alternative to traditional methods. However, it can have its challenges and require a specialist solicitor or conveyancer who understands the processes involved.
The auction conveyancing team at Holden Smith has helped clients achieve successful purchases and sales of properties through auctions. Our team understands the pressures and potential pitfalls that can occur when purchasing and selling, and applies this to provide a seamless experience.
To speak to a member of our property auctions team, you can phone one of our offices or complete our online enquiry for a 30-minute free initial consultation.
What Holden Smith can do for you
Communication is essential as part of any conveyancing process, and our specialist auction team understands this. Our team will remain in constant contact with you whilst we complete your purchase or sale. You will also be given access to our app, which provides you with 24/7 updates on the progress of your case.
If you are selling your property through an auction, we will work with you to prepare all the necessary documents for your legal pack and advise on the searches undertaken on the property.
For buyers, we can assist you by reviewing the legal packs provided by the sellers, ensuring that all documents are correct and that there are no issues on the searches that could complicate the purchase. We will work with you to ensure a seamless buying experience.
What is the process of buying at an auction
These are the typical steps involved in the auction conveyancing process. Please note that once your bid has been accepted, most auctioneers require you to exchange contracts within 28 days of acceptance. This makes it essential to have a conveyancing professional with experience in purchasing auction properties.
There are six steps when purchasing through auction:
Identify and view your desired property
Instruct your solicitor to review the legal pack and raise enquiries
Prepare your finances
Place a bid on your property
Arrange a survey
Insure the property
Complete
Do I need a solicitor to purchase an auction property?
It is crucial that you appoint a solicitor or conveyancer with experience in auction sales and purchases. A professional with experience can review all the documents and highlight any potential issues that could arise with your purchase or sale, as well as advise you on whether you are making the correct investment.
What is in an auction legal pack?
A legal pack is a set of documents that is available to you before an auction. It is essential that you review this pack with your solicitor prior to the auction, so you are aware of what you are purchasing. A typical legal pack contains the following documents:
Property searches
Special conditions of sale
Title deed
Fixtures and fittings form
Energy Performance Certificate (EPC)
Lease
Office copy entries from the Land Registry
Planning permission documents
Responses to conveyancing searches
There may also be additional documents included, depending on the property.
Can I purchase a property at an auction with a mortgage?
In theory, it is possible to purchase at an auction with a mortgage if you have one in place; however, with the 28-day limit to exchange contracts, you will be required to obtain a mortgage in this short period. Typically, buyers apply for a bridging loan to purchase the remainder of the property after the deposit has been paid, and then refinance with a mortgage to repay the bridging loan.
Why use Holden Smith?
At Holden Smith, our team has been assisting clients in buying and selling properties through auctions since 2019. We understand the processes inside and out and will be by your side at every step of the process.
With offices across Leeds, Manchester and the West Yorkshire area our property auction solicitors are ready to assist you throughout the auction process. Despite being based within the North of England, we have been helping clients across all of England and Wales.
As members of the conveyancing association, we are passionate and committed to delivering the best possible conveyancing experience to our clients.
FAQs
What are the required conditions to buy a house at an auction?
You will be required to have a few documents ready to show at an auction:
Proof of funds
Method of paying your deposit
Proof of address and valid identification
Are auction bids legally binding?
Yes, once a bid from an auction has been successful, you are in a legally binding agreement between yourself and the buyer/seller.
Is it cheaper to buy a property through auction?
This is dependent entirely on the property itself as well as how many people place bids on it. One of the key benefits of using auctions for property purchases or sales is the speed of the process with auctions usually taking less time than a traditional purchase/sale.
Are there any additional fees that I need to pay?
On top of your deposit for the property, you may also have to pay a fee to the auctioneer or auction house. This is typically known as a buyer’s premium or auction fee. The amount you will have to pay varies from auction to auction, which is why it is essential to check with the auctioneer to determine this amount.
Your solicitor or conveyancer may also charge a fee for reviewing the auction pack and documents. However, they will typically deduct this from your final bill if you proceed with the sale or purchase of the property.
Do I need the money up front when buying a house through an auction?
This is dependent on how you are purchasing the property.
If you are purchasing as a “cash buyer,” you will need to have your deposit amount ready for the exchange of contracts and the remaining amount ready to be transferred upon completion.
If you are purchasing through a mortgage or bridging loan, you will not need to have all the money up front to purchase the property, but you will be required to have a deposit ready. The amount for the deposit varies, but most auction houses typically accept a 10% deposit.
What if the property has issues after completion?
Once you have completed your purchase of a property, any issues you encounter with the property will be your responsibility to resolve. This is why it is important to view the property yourself pre-auction before making a bid and to review the auction pack which will include details of the property and the results of the searches.
What happens if I do not complete my purchase within the 28 days?
If you fail to exchange contracts by the deadline set by the auction house, you will be in breach of contract, and the property owner will be allowed to re-list the property on the market. As a buyer, you may also lose your reservation deposit.
Start your journey.
Get in touch.
If you are considering purchasing or selling a property through an auction, please do not hesitate to contact our team of property auction solicitors and conveyancers. You can contact the team by calling one of our offices or by completing our online enquiry form.