Buying and selling Property at Auction
Our expert property solicitors know exactly what to look for in respect of buying and selling property at auction.
Selling your property at auction can seem like a daunting prospect that should be left to professionals. However, it is becoming increasingly popular and can be a good option if you are looking for a quick sale, or the property you are trying to sell has issues which may put off traditional buyers, such as being run down, having title problems or being otherwise un-mortgageable.
The auction house you have chosen will value the property and agree the reserve and guide price with you. Typically, the property will be entered into an auction around 4 weeks after instructing the auction house. This is to allow time for them to advertise the property and provide any potential buyers with the legal pack (see below) in advance of the auction.
The auction is held in public, online or a combination of the two. Potential buyers will bid on the property, and the highest bidder will be legally bound to purchase the property as long as the reserve price has been met.
You will need to instruct solicitors around the same time you instruct the auction house. They will then be able to put together the legal pack for you. This will include the -
Within the special conditions, you will usually claim back the search fees from the successful buyer and can add other conditions specific to the property. Usually it also stops any enquiries being raised after the auction.
Any material defects or issues with the property must also be disclosed at this point. If necessary it may be advised to include indemnity insurance to rectify any issues.
Potential buyers will review the legal pack and may instruct their own solicitors to review this. They can also raise enquiries regarding the legal pack before the auction.
After the auction the successful buyer will sign the contract giving them (usually) 20 working days to complete, and pay a 10% deposit. The buyer cannot withdraw from the purchase after this point without losing their deposit.
Heald Solicitors are experienced at selling all types of properties at auction and would be happy to help. We are also happy to help with auction purchases including reviewing legal packs prior to the auction.
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