Auction Conveyancing Solicitors

Buying a property at auction differs from the standard conveyancing process primarily because you'll be contractually bound to buy the auction property after you win the bid. The below article explains the conveyancing process at auction, however, if you're more interested in the risks, then read this article - What are the risks of buying at auction?

What is the auction conveyancing process?

1. Seller lists the property at the auction house

They'll also instruct auction property solicitors to prepare the auction legal pack.

2. The buyer chooses the property they are interested to bid on

3. Auction Legal Pack becomes available to review

Normally, the auction pack becomes available to view 2-5 days before the auction date. It isn't mandatory to use a solicitor to review the documents; however, many savvy buyers do.

4. Auction takes place.

If you win, you pay your 10% deposit on the day and are contractually bound to buy the property. Read our - Top tips for buying at auction property

5. Post Auction Conveyancing

What documents are included within the Auction Legal Pack?

Prior to the auction day, the auction house provides a legal pack about the property being sold. The pack will normally contain all of the following:

• Contract of Sale
• Title Plan - the boundary of the property
• Official copy of the register of title - also known as the title deeds
• Conveyancing Searches - normally the local authority, drainage and environmental search
• Protocol Forms - TA6 Property Information Form, TA10 Fittings and Contents Form and (if leasehold) TA7 Leasehold Information Form
• (If Leasehold) Leasehold Information Pack - also known as the Management Information Pack. It contains information about the ground rent, service charge and major works.

Whilst the above is what you should receive when buying property at auction, the legal pack can lack information, especially if it is a repossession auction because the seller didn't live in or own the property, so they have very little knowledge of the auction property. This is why you need specialist auction solicitors to review the legal pack before the auction. The review should highlight missing information and flag issues in what documents have been provided.

The information is normally limited and should be reviewed by a solicitor before you make an offer. Conveyancing solicitors will be happy to prepare a pre-auction report based on this information and any other that they can obtain prior to you attending the auction house. This costs much less than the conveyancing for a full purchase.

Freehold Pre-Auction Report Review

£299 INC VAT 2 working day turnaround* | Completed by our panel solicitor. Order Freehold Report

Leasehold Pre-Auction Report Review

£480 INC VAT 5 working day turnaround* | Completed by our panel solicitor. Order Leasehold Report

Watch out when buying leasehold flats at auction

A common mistake is buying a leasehold property at auction without determining the lease term first. Leasehold properties with short leases (under 80 years) may not be able to be mortgaged. For some seasoned auction buyers a short lease is an opportunity, here's what you can do: Buying a leasehold property with a short lease.

Unlike with standard conveyancing, where you can take as much time as you like before you confirm you are happy to exchange contracts, an auction property is legally binding at the point the hammer comes down. You'll have to pay your auction fees and 10% deposit and complete the purchase in 28 days (the normal agreed time frame).

You never truly know why a property is being sold at auction. Was it that the seller needed a fast sale? Does the property have a structural defect that can't be fixed? Is the lease short and the freeholder won't extend? Is the council looking to enforce the removal of an extension with no planning permission? (read more about What hazards to look for when buying a home)

The challenge is that if there is an issue post-auction, you could be buying a property that can't be sold on the open market, or your mortgage lender won't lend you the money because of the issue. This exposes you to losing your 10% deposit and the seller's legal costs.

What are the risks of buying at auction?

When buying at auction, there are no guarantees. If you buy at auction, you do so caveat emptor (literally 'let the buyer beware'), which means that if there's something wrong with the property, you probably won’t have any comeback against the seller or the auctioneers. You might have a remedy if there were misrepresentations in the auction catalogue or legal pack, however this is a complicated area of law and you'll need a property auction solicitors. You could face the prospect of expensive litigation, which is best avoided. Read more - What are the risks of buying at auction?