This creates a legally binding agreement between both parties. There is then a limited period of time to formerly 'complete' transferring what is more commonly a significant asset, for a large sum of money.
The auction conveyancing process is therefore condensed into a matter of days rather than months. For both buyer and seller, this speed can prove to be extremely advantageous; however, it should not diminish the significance of the transaction – there are many considerations for both parties.
Do I need to use a lawyer or solicitor before the auction?
Quite simply, it’s not mandatory but it might prove money well spent.
On the whole potential buyers with limited auction experience, will consult a solicitor, lawyer or licensed conveyancer prior to auction to advise upon the content of the Legal Pack. Such professional due diligence provides an experienced, clearer interpretation of the content, scope, costs and risks of the intended asset acquisition.
That said many experienced auction buyers feel sufficiently educated to commit their investment to their own analysis. However, on occasion even professional investors and developers opt to employ a legal professional to provide further analysis and guidance to their initial due diligence.
Upon instruction, your appointed legal adviser will be able to liaise with the auctioneers and download the Legal Pack from their website liaising with the seller’s lawyers and solicitors where necessary.
Post auction, if you are the successful purchaser and have exchange contracts on the fall of the gavel you will need to provide the auctioneer with your appointed solicitor or lawyer’s details. This will be recorded on the Memorandum of Sale and contracts will be sent to them.
For more information, please review - https://www.auctionconveyancing.com/auction-legal-process
Do I need a survey when buying an auction property?
Obtaining a survey isn’t compulsory but if you are unsure about the condition, structure or costs associated with a property then you might wish to engage a surveyor, an engineer or builder. Remember that once the gavel falls, contracts are exchanged and, whatever the condition, you are committed to buying it.
How long will I have to complete an auction purchase?
Statutory Completion is twenty working days but a different schedule or specific date maybe included in the Auction Special Conditions of Sale.
What deposit will I need when buying an auction property?
The deposit is payable on exchange (the fall of the gavel) and is normally 10% of the purchase price and sometimes with a minimum amount. The deposit may differ for certain Lots, where it should be detailed in the Auction Special Conditions of Sale.
Do I need to arrange finance before the auction?
At an auction you are committed to buy the property on the fall of the gavel and Completion then occurs within a short limited period. So it crucial to arrange and secure your finances in advance of any bidding. Who will lend on the asset? How much can you borrow and is it sufficient? Will your application will be processed, with funds released, in time for Completion?
What Solicitor details can I put down when registering for an auction?
Solicitors: Taylor Rose MW
Contact: Jane Baird and Luke Humphries
Address: Stuart House, St John’s Street, Peterborough PE1 5DD