Property Auctions

Buying a property in an auction can be cost effective, but even if you find a bargain before going to an auction you need a solicitor to advise you on the contents of the legal pack.

Once your bid is accepted you are legally tied into the contract and if you do not complete the purchase, you risk losing your 10% deposit.

The basic rule under English law for the sale of land is that the buyer must make his own enquiries. It is particularly important to discover any misrepresentation in the sales pack, because you may not have an opportunity to raise enquiries.  

Many properties are put into auctions because they are blighted and unmortgageable.  Lenders might reject your mortgage application.  Even if you are a cash buyer, you have to think about the future prospects of sale and in the future, you may wish to borrow against the property.  If you find a house or a flat on an auction website which is of interest, we can provide you with a Report on the property.  Properties are often put into auctions, because there are problems which either cannot be resolved, or the owner does not have the money nor the wherewithal to deal with them.  There are risks in buying a property at an auction.  Often auction properties are distressed and in a bad condition. It might need a lot of remedial work and which will become your responsibility.  The seller’s special conditions might (and often do) contain onerous conditions which if not explained to you by a professional solicitor could make the purchase a bad investment.