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.
Upon the exchange of contracts, you often gain an insurable interest in your newly acquired property. So although you have not completed, it comes ‘on risk’, meaning that you have the responsibility to insure it immediately under the terms of the auctioneer’s conditions of sale. To cover this liability you will need to find an insurer that can provide same day cover.
Bickers Insurance Service are a UK based insurance brokers, specialising in property insurance. When the hammer drops, you need cover immediately, so our webquote facility is available 24/7 for quotes and instant cover.
When you buy a property at /auction, it is often unoccupied for a period whilst works are completed. If this isn’t disclosed to your insurer, your policy could be void, rendering it useless in the event of a claim. Be sure to obtain the cover you need, by buying a policy designed specifically for your situation.