Auction Conveyancing & Auction Legal Pack Review

When buying a property at auction, and prior to bidding, you should have all the relevant information to hand to be able to make an informed decision, both in terms of whether the property represents a safe investment and, if so, how much to bid.

Before the auction itself, a legal pack for the property should be available via the Auction House which will need to be reviewed by an experienced conveyancer. This pack should contain a number of documents, including the contract of sale, the title deeds and title boundary plan, together with any conveyancing searches. It should also include various forms completed by the seller such as the Property Information Form, Fittings and Contents form if applicable and, if the property is leasehold, the Leasehold Information Form plus the Management Information Pack.

It is only by carefully scrutinising these documents that a Lawyer specialising in conveyancing can flag any legal risks. Although buying a property at auction can often mean bagging a bargain, there can be all sorts of costly issues which first need to be flushed out; issues with the legal title not being good and marketable, not suitable for lending purposes.

Within the Contract there are usually a number of Special Conditions of Sale, these often require the buyer to pay the seller’s legal fees and disbursements. There can also be financial penalties for not completing within the time frame stipulated in the Contract. It is therefore vital you are advised on these costs prior to bidding in order for you to budget accordingly.

Moreover, unlike a conventional property purchase, where the purchaser will have plenty of time prior to exchange to do their due diligence, a buyer at auction becomes legally bound once the hammer goes down to complete the purchase within so many days, usually 28, regardless of any hidden problems.