Guide To Buying at Auction

1. Pre-Auction Preparation:
Research Properties: Identify properties you’re interested in and attend pre-auction viewings.
Legal Pack: Obtain the legal pack for each property you’re considering. This includes important documents such as title deeds, local searches, and conditions of sale.
Finances: Set a budget and arrange financing. Be aware that you may need to pay a deposit (usually 10% of the purchase price) on the day of the auction.

2. Choose a Solicitor or Conveyancer:
Select a solicitor or licensed conveyancer experienced in auction purchases.
Provide them with the legal packs for properties you’re interested in to review.

3. Pre-Auction Due Diligence:
Property Survey: Consider arranging a survey before the auction to identify any potential issues.
Local Authority Searches: Your conveyancer will perform local authority searches to check for any planning or development issues.
Check Legal Pack: Ensure the legal pack is complete and contains all necessary documents.

4. Auction Day:
Arrive Early: Familiarize yourself with the auction venue and arrive early.
Bidding Strategy: Decide on your bidding strategy and stick to your budget.
Winning Bid: If successful, you’ll need to pay a deposit immediately (usually 10%). The remaining balance is typically due within 28 days.

5. Post-Auction:
Sign Memorandum of Sale: Once the auction is successful, sign the Memorandum of Sale. This is a legally binding agreement.
Instruct Conveyancer: Provide your conveyancer with the Memorandum of Sale and legal pack.
Check the Completion Date: Agree on a completion date with the seller, typically within 28 days.

6. Conveyancing Process:
Title Check: Your conveyancer will conduct a thorough title check to ensure there are no legal issues with the property.
Searches: Complete all necessary searches, including land registry checks.
Draft Contracts: Your conveyancer will draft contracts for sale.

7. Exchange of Contracts:
Signing Contracts: Once satisfied with the legal aspects, you’ll exchange signed contracts with the seller.
Deposit Payment: Pay the remaining deposit (usually 90%) on exchange of contracts.

8. Completion:
Final Payment: On the agreed completion date, transfer the remaining balance to the seller’s solicitor.
Collect Keys: Collect the keys and take possession of the property.