Property Auction Solicitors

Ahead of the auction, you’ll be able to see a catalogue of what will be on sale and the contents of the auction legal pack for each property. We strongly recommend instructing a property auction solicitor to review this and advise you on your potential purchase ahead of time. You should also be able to arrange a viewing with the seller before the auction takes place. 

During the auction, competition can be fierce, with lots of bids. Bear in mind that the winning bid when the hammer falls is legally binding under the traditional auction method, and you’ll be required to pay a 10% deposit on the day if you’re the winner. There is also typically a ‘reserve price’ – a price set by the seller that marks the maximum price they will sell for. Bidders are not aware of this figure, although the guide price giving an idea of the property’s value is public.

After the auction, you’ll need to go through the conveyancing process to ensure the legal transfer of ownership. The remaining 90% of the price is due within 28 days of the auction, paid either in cash or with a mortgage. 

Under the modern auction method, things can take a little longer. Buyers have 28 days to exchange contracts and pay the deposit, and another 28 days after this to complete the purchase.

Selling a property at auction is a popular option for properties that are particularly unique, in a state of disrepair, or for sellers who require funds from the sale quickly.

If you want to sell your property at auction, you should first instruct a property auction solicitor. They will prepare all of the relevant legal documents for the auction pack that is presented to potential buyers ahead of auction day. You may also wish to instruct an estate agent who specialises in auctions to help market the property.

On auction day, you’ll set a reserve price (the minimum amount you will sell the property for) and a guide price (giving buyers an idea of what the property is worth). Buyers will only be able to see the guide price. If the auction doesn’t reach your reserve price, the property will be withdrawn from the auction.

With traditional auctions, when the auction finishes, the winning bidder is legally obligated to complete the purchase and will pay a 10% deposit. If they back out after this, you will keep this deposit.

Under the modern auction method, the buyer must exchange and pay the deposit with 28 days (when the sale becomes legally binding), and complete the sale within another 28 days after this.

Yes. You’ll need to provide proof of funds for the entire value on top of your 10% deposit. So, if you’re buying in cash, you’ll need to show that you have the funds ready. If you’re using a mortgage, you should have an agreement in principle ahead of the auction day.

There are a few benefits to selling your property at auction over more traditional methods. These usually apply to specific types of properties and the goals you have as a seller. For example:

• Auction sales and purchases complete more quickly than traditional transactions – within 28 days for traditional auctions and 56 days for modern auctions. This is ideal for sellers who want access to the sale proceeds fast. 
• Sales are less likely to fall through, especially with traditional auctions where the seller becomes legally bound to the transaction as soon as the hammer falls, and must forfeit their 10% deposit if they pull out of the purchase.
• Some auctions can see properties sell for a higher price than they would with traditional sales methods, as auctions can encourage competitive bidding. 
• Auction can be a good way to quickly sell properties that may struggle to sell with more traditional methods, including those in a state of disrepair or unique properties.