Buying a property at auction is a great way getting yourself onto the property ladder. Not only will you bag a bargain property but the purchase will usually proceed to completion within 3-4 weeks. Despite this, as with all property purchases, purchasing an auction property requires careful planning and attention to detail and a solicitor that can work at speed. If you have expressed an interest in an auction property, it is important that you thoroughly research the property you are thinking of buying. You can request a legal pack from the auctioneers and you must ensure that you understand as much of that information as possible and carry out as many investigations about the property beforehand.
The pack generally includes copies of: the title deeds, office copy entries, special conditions of sale, any leases, searches and replies to pre-contract enquiries. These documents should be reviewed by a solicitor so that they can alert you to any potential issues. You must remember that at an auction house when the hammer falls, the bidder is contractually committed to buy. At Brearleys, our conveyancing department are pleased to offer a fixed fee to review the legal pack for you and provide a report on the property. This will allow you to make an informed decision as to whether or not you wish to proceed with the property at auction. It may seem like an unnecessary cost when you do not own the property, but it may help you avoid or be aware of a costly problem as you buy subject to all documentation and terms of contract whether or not you have read them.
At auction, a 10% deposit is paid on exchange of contracts and a completion date is fixed usually for 28 days. The remaining 90% of the value of the property is usually payable within 28 days. Our dedicated team will ensure that this deadline is met and will keep you informed of the progress throughout. A fixed fee service is offered to all clients wishing to instruct us to handle the conveyancing of the property from purchase at auction through to completion.