Buying a Property at Auction: A Conveyancing Checklist for Buyers

TL;DR – Our advice at a glance

Before bidding at a property auction, ask a conveyancer to review the legal pack, arrange a survey and valuation, confirm your funding and set a firm bidding limit. If your bid succeeds, you will usually pay a 10% non-refundable deposit immediately and complete within 28 days, while also covering conveyancing fees, Stamp Duty Land Tax and any auction house charges.

Buying a property at auction can be an exciting way to secure a home or investment, but the speed of the process brings additional risks. Unlike a conventional purchase, the fall of the hammer normally creates a legally binding contract immediately. Careful preparation and specialist conveyancing advice are therefore essential before you bid.

What to check before bidding at a property auction

• Arrange a legal pack review. Properties may be offered at auction because of title defects, restrictive covenants, short leases or other issues that are not obvious during a viewing. Before bidding, ask an experienced conveyancing lawyer to examine the auction legal pack and explain any risks, special conditions and additional costs.
• Inspect the property and obtain a survey. A legal review does not assess the property’s physical condition. Arrange an appropriate survey and valuation so that you understand potential repair costs and avoid paying more than the property is worth.
• Set a firm bidding limit. Guide prices are not guaranteed sale prices and may be set to attract interest. Decide your maximum bid in advance, taking account of repairs, taxes, conveyancing costs and auction fees, and do not let the excitement of the auction push you beyond it.
• Understand what happens when the hammer falls. A successful bid will normally create a binding contract. You will usually have to pay a 10% non-refundable deposit immediately and provide identification and evidence of funds. Check the auction house’s requirements before attending or bidding online.
• Have your finance ready. Completion is often required within 28 days, although the legal pack may specify a different deadline. Confirm your mortgage, bridging finance or cash arrangements before bidding; delays may lead to interest, financial penalties or loss of the deposit.
• Budget for every cost. In addition to the purchase price, allow for your survey, conveyancing fees, Stamp Duty Land Tax and any buyer’s premium, administration charge or seller’s legal costs specified in the auction conditions.
• Consider a pre-auction offer. It may be possible to agree a purchase before the auction. Any offer should still be made subject to appropriate due diligence, and you should obtain conveyancing advice before committing.

How Hayward Moon can help with auction conveyancing

Hayward Moon specialises solely in conveyancing. Our property lawyers can review an auction legal pack before you bid, highlight title issues and special conditions, explain the likely costs and work to the completion timetable if your bid is successful. We can also help sellers prepare the legal documentation required for an auction sale.

If you are considering buying or selling property at auction, contact Hayward Moon early so that our conveyancing team has enough time to complete the necessary checks before the auction date.

Please note this article is provided for general information purposes only to clients and friends of Hayward Moon Limited. It is not intended to impart legal advice on any matter. Specialist advice should be taken in relation to specific circumstances. Whilst we endeavour to ensure that the information in this article is correct, no warranty, express or implied, is given as to its accuracy, and Hayward Moon Limited does not accept any liability for error or omission.