Understanding the Role of an Auction Conveyancing Solicitor in Property Transactions

An auction conveyancing solicitor is a specialist property lawyer whose expertise lies in dealing with property auctions.  Their expertise extends beyond traditional property transactions, honing in on the distinct requirements and challenges posed by the auction environment. Their familiarity with auction-specific documentation, such as legal packs and auction catalogues, allows them to decipher complex legal jargon and highlight critical aspects for their clients' consideration. During auctions, time is of the essence. Auction conveyancing solicitors thrive in these high-pressure scenarios, swiftly moving to facilitate the exchange of contracts and payment of deposits immediately following a successful bid. Their efficiency and attention to detail ensure that legal formalities are promptly addressed, meeting the stringent timelines set by auction houses.

Auction Process When Buying Through Auction 

The process of buying a property at auction can be broadly categorised into 3 key milestones. Namely, these are pre-auction, day or auction and the post auction formalities. We will now look at these stages in detail;

Pre-Auction Preparation

Once you have sourced a number of properties you are interested in bidding, you must instruct an auction conveyancing solicitor to review the legal packs for each property. They will then check (but not limited to):

• The title to the property is sound and the seller’s right to sell
• For matters such as restrictive covenants, easements or rights of way attached to the property
• Search results for external matters which could affect the property 
• Mortgages 

They will then highlight these to you, before you make a formal commitment to buy the property. At worst, you would have paid a nominal legal fee for the solicitor’s time and not lost your deposit over the process! Your solicitor will also review the draft contract and auction terms to help you understand your obligations should you be the successful bidder. 

Day of Auction

When the auction starts, it is time to put your game face on. The auctioneer will begin by announcing the property details and opening bid. Once bidding commences, stay alert – things move fast. Raise your paddle or shout “Yes” to bid. The auctioneer will announce each new bid and look for the next highest offer.

The million dollar (or sterling pound) question is, should you start low or go in high? That depends on your budget and how bad you want the property. Some tips to consider are:

• Set a maximum price beforehand and don’t get caught up in the excitement of bidding. Stick to your limited.
• Start with an opening bid below your maximum budget to test the waters. You can always increase your bid, but you can’t decrease it.
• Bid in increments that won’t price you out too quickly. Maybe £2,000 to £5,000 at a time.
• Stay active by bidding whenever the price is within your range. But don’t feel the need to bid on every increase – only when necessary.
• If bidding slows or stops, the auctioneer will warn ‘going once, going twice.’ This is your last chance! Bid now or forever hold your peace.
• Once the gavel drops, the final bidder wins the property! Now the real work begins – time to exchange contracts and finalise all proceedings with your auction conveyancing solicitor.

Buying at auction can be thrilling, but keep a level head. Do your homework, set a budget, and hire a solicitor to guide you through the process. With the right strategy and patience, you will get the property and price you want. The rewards of navigating an auction and scoring a great deal are well worth the effort. 

Post-Auction Conveyancing Process

Once your offer has been accepted at auction, the real work begins, There are several steps that need to be completed to ensure the legal transfer of the property is done properly. An auction conveyancing solicitor will guide you through each of these steps.

As the successful bidder, you will need to sign a memorandum of sale, which is a legally binding document stating you agree to buy the property at the auction price. You will then have a set number of days, typically around 28 days to complete the purchase. You will also be required to pay a non-refundable deposit, usually 10% of the purchase price.

On the completion day, you legally take ownership of the property. Your solicitor will Transfer the remaining funds to the seller along  with any additional fees payable under the terms of the auction. Once this step has completed, the registration formalities involving the land registry are almost identical to that of a non-auction property purchase.

The process of buying a property through auction is both exciting and carry some unusual challenges which you would not otherwise see during a standard conveyancing transaction. To increase your odds at being successful at auction, preparation is key.