As a seller, you may see an auction as a straightforward and quick way to dispose of your property, particularly if there are issues with it or you have struggled to sell it on the open market. As a buyer, you may view the auction room as an opportunity to purchase a bargain
There are risks involved when buying at auction, due to the timescales which are often involved and the lack of information which can be available, but we can help you to identify and minimise these risks.
Selling a property at auction:
We find that the more comprehensive the auction legal pack, the more likely it is that the property will receive interest at auction. A lack of information will often put off a buyer altogether or complicate the completion process. We can assist with the following:
- Preparing a comprehensive title pack including carrying out a set of searches in relation to the property and providing answers to common enquiries
- Tracking down and collating the details of any tenants and leases, rent, service charges paid etc.
- Investigating any anomalies at the property so that these can be brought to the buyer’s attention at an early stage, which will streamline the completion process
- Protecting your position by either resolving any anomalies or covering the risk of these in the sale contract
- Site visits if the property will be split up into separate parcels at auction, to ensure that any land which will be retained by you has any rights you will need to continue to use that property and/or to develop it in the future.
Buying a property at auction:
As soon as the hammer drops after your bid, you are bound to buy the property whether or not you have properly checked the legal information in the auction pack. There may be major title defects or other serious concerns which will not be apparent from a physical inspection. It is always best to approach us prior to an auction, as soon as you have identified that you are interested in a property, so that you can be made aware of any issues with the property before you enter the auction room. We can assist you with the following:
Before you propose to bid:
- Carrying out a thorough due diligence exercise on the property in a limited period of time
- Reporting to you on the property, searches, leases and the sale conditions
- Further investigations and even negotiations if we have an opportunity to do this prior to the auction (though a seller will often refuse to engage in any discussion)
After your successful bid (but you will be legally bound to complete the purchase):
- Carrying out a thorough due diligence exercise of the property to reassure you and check there has been no misrepresentation by the seller and/or auctioneer
- Reporting on to you on the property, searches, leases and any other matters affecting the property
- Preparing for completion in a limited period of time: completions usually take place within 4-6 weeks of the date of the auction