Buying and Selling at Auction
Buying and selling a property at auction can help you avoid the delays and uncertainties often associated with the property market.
However, this method carries some risks. A traditional property auction is legally binding, and once the hammer comes down, you are committed to your purchase. You cannot renegotiate the price or retract your offer without considerable cost, even if you discover a significant issue or can’t secure appropriate finance. This is usually the price of your deposit plus the seller’s costs.
Our commercial property team supports landlords and investors, making sure the legal groundwork is in place.
Whatever your sector or portfolio size, we make sure you’re properly prepared, whether you’re buying or selling at auction.
How we can help
To ensure our team can fully support you, it’s important that you get in touch with us well in advance if you are considering buying a property at auction. This gives us time to thoroughly review the property’s auction pack, identify any potential issues and advise you on the risks before you decide whether to proceed. We recommend that you instruct us at least three weeks before the auction date, and earlier if you need a mortgage.
It is standard practice for successful buyers to reimburse the seller for the cost of searches. We also recommend you instruct a surveyor to carry out a survey. This is especially important if you are funding your purchase with a mortgage. Your lender will need to know that the property is sound, and discovering problems after you’ve committed to a purchase could result in your lender withdrawing their offer.
If your proposed purchase is in order and you place the winning bid, we will process the purchase and handle all registration and stamp duty land tax formalities.
We prepare a comprehensive legal pack for your property as required by the auctioneer. This gives prospective bidders all the information they need to decide whether to bid.
We then progress your sale and take it to completion, while liaising with your buyer’s solicitors throughout the transaction.
Our Lawyers.
Nathan Chalmers
Amira Hughes
