Buying Property by Auction
The process of buying a property by auction is a little different from a normal purchase as basically when someone makes the winning bid at a property auction, they ‘exchange contracts’ with the seller the moment the gavel falls. Therefore, auction buyers must complete their legal due diligence on the property before the auction.
Auctioneers will make available an auction legal pack, containing key documents such as the title deeds, local authority searches, property forms, and the conditions of sale. This helps identify any potential legal issues, such as restrictions, defective leases, missing consents, and other legal issues that could affect the property’s value or future use.
The buyer’s solicitors carry out a review of the pre-auction legal pack to advise the buyer on any potentially serious legal issues. Auction legal packs may contain a range of documents, and a review typically covers an in-depth analysis of the following:
- Official copy of the title register
- The title plan
- Conveyancing searches
- Lease (if leasehold)
- Planning permission documentation
- Property information form (TA6)
- Fixtures and contents form (TA10)
- Special conditions of sale
- Energy Performance Certificate (EPC)
- Tenancy agreements
- Other relevant information
A review of a property auction legal pack is crucial to identify potential issues, ensuring buyers make informed decisions before bidding. Sometimes auction legal packs are only completed and available for review a few days before the auction date.
The legal pack review legal work is charged separately from the auction conveyancing legal work required if you win the auction. The seller pays a solicitor to compile the auction pack and the buyer will not normally be expected to pay the auction house for a copy of the auction pack. If you win the auction, however, you will typically have to pay the seller for the property searches, which you would normally have to pay for when buying a property.
If you have any enquiries regarding buying a property by auction, please contact our property solicitors at 020 8240 9018 or info@jypartnerssolicitors.com.