If you are a Property Investor, Property Developer, First Time Buyer and thinking of buying or selling property at an auction, you are not alone. Property auctions take place right across the country on a regular basis. Many of our Conveyancing clients at Emmersons Solicitors seek our help either to legally prepare their properties for an auction sale or to obtain advice prior to taking part in an auction and then to progress their purchase quickly once they have successfully bid on a property.
An auction is a specialist type of transaction whereby you can bid on property or land, both Residential and Commercial. Generally speaking, there are two main reasons people put their properties into an auction, and that is for a pain-free easy sale, or because there is something that is unique about it which would cause too much expense and time to list with a traditional estate agent.
Conveyancing Solicitors Newcastle and Sunderland
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There are two types of property auction;
If you successfully bid at an auction that uses the traditional method, you will be required to exchange contracts and pay a 10% deposit as soon as the auction ends. You must legally complete the completion within 28 days. Exchanging contracts means that you are legally bound to go ahead with the purchase. If you later try to withdraw your offer, there will be severe financial consequences. It is therefore of the utmost importance that you know what you are buying in terms of the legal title prior to making your bid.
If you make a successful bid, you won’t have to exchange contracts immediately. Instead, you pay a fee to reserve the property; this is non-refundable if you don’t go ahead with the purchase. The reservation fee is normally a percentage of your purchase price. This method of auction is less pressurised from a buyer’s point of view as you then have 56 days after the auction date to exchange contracts and complete the purchase.
We work with you to ensure that you include all necessary information and documents in the Sale Pack. It is often the case that certain materials/documents are missed out of Auction Packs. You may not think this is an issue; you may assume the buyer will bid on your property in any event. However, you could deter potential bidders as their solicitors (who would have checked the pack) will have advised them that essential legal documents are missing. The property may, therefore, present as too risky to purchase.
It is therefore essential that you obtain legal advice, before incurring the expense of putting the property into auction. Property auctions are not cheap, so you should get it right first time!
It is the job of your solicitor to ensure that you have all you need in order to make a sound decision whether or not to proceed with your bid. The more information you have, the easier your decision will be. Our Auction Solicitors will check all of the documentation in the Auction Pack and prepare a pre-auction report for you. We also go one step further, try to obtain the answers to some of the issues which we may have raised in our report. This could be by speaking to the managing agents on a leasehold flat to clarify the position on a particular matter for you, or speaking to the estate agents to clarify a boundary concern we may have raised.
It is vital that you know which type of auction the property is in prior to bidding, as this can cause issues later down the line if your circumstances change and you can no longer proceed. It could be the difference between losing a few thousand pounds or being sued for breach of contract!At Emmersons, our Auction Solicitors use our skills and expertise to assist you to prepare an Auction Pack for a property that you are going to enter into an auction or to review an Auction Pack relating to a property upon which you would like to bid.
One thing is clear; we will do all we can to ensure you are fully advised and prepared to confidently place your bid. For any auction-related queries, contact us:
Expert Auction Conveyancing Solicitors- Newcastle: 0191 284 6989
Expert Auction Conveyancing Solicitors - Sunderland: 0191 567 6667or email us: firstname.lastname@example.org
"I recently sold a property through Emmersons; they could not have been more professional and helpful. Countless issues were faced due to the nature of selling a new build property. However they handled everything brilliantly well, and I would strongly recommend them to anyone."
"I used this firm primarily based on their google reviews. I must admit they are wonderful people and very responsive and professional. I mostly communicated with them via email and the responses were swift. I never waited for more than two hours for them to respond. I definitely recommend them and would use them again if I need to in the future. I must point out, before choosing them I had few quotes from other firms and all of them were slightly cheaper, but I didn't like their reviews. I decided to pay a bit extra and it was well worth it for us."
"Everyone I have dealt with has been courteous, professional and helpful. As a first time buyer, I have had many questions, all of which were answered promptly and explained clearly."
For most people, buying or selling their own home is the largest single financial transaction that they deal with during their lives. If you are contemplating a buying or selling your home, and wondering whether you need a solicitor to assist you, then my FREE eGuide To Buying and Selling Your Home will help you to decide.
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For initial discussions or to obtain costs information, contact our Conveyancing Solicitors Newcastle office:
0191 284 6989 Newcastle Office