Buying a property at auction

Buying property at an auction can be a fairly stress free way to buy a property - one of the main advantages is the straight forward approach to the sale.

The traditional route to buying usually takes around twelve weeks from the day an offer is accepted to the exchange of contracts - and a lot can go wrong during that time. Once the hammer falls at auction, you have effectively exchanged contracts and neither party can back out.

On that basis, it is essential to do your homework before auction day. The first thing you should do is request a catalogue; this will give detailed information and guide prices.

Your finances must be in place before you start bidding, normally a 10% deposit is required if you are the successful bidder. A valuation carried out by your mortgage lender must be carried out before the day of auction.

You will need to register your personal details, your solicitor’s full name, phone number and address before entering the auction room.

Jennifer Smith, a Conveyancing Solicitor in our team, says “As your solicitors, we are able to request a legal pack from the auctioneer which contains all the legal documents for the property - Land Registry certificate, legal searches required by the mortgage lender, including environmental and local authority searches, and are studied carefully to ensure there are no hidden conditions. The pack may also contain any ‘special conditions’ to the sale. It is vital that a solicitor sees these as they fall outside the general conditions of sale. This can be anything from a shorter completion date to the seller requiring the reimbursement of part or all of their legal fees.”

Our Conveyancing Team, based in Christchurch, also cover Bournemouth, Poole and the New Forest. If you have any questions, you only have to ask us at Frettens. Please call 01202 499255 and Jennifer or her team, will be happy to chat about your situation and you particular requirements.