Property Auction Conveyancers

Property auctions are a great way for investors and bargain hunters to find properties with plenty of potential for renovation or rental yields, and for vendors to sell a property that has struggled to sell through usual means. But property auctions have specific legal criteria and nuances that buyers and sellers both need to be aware of. For sellers, you need a conveyancer who can create a rigorous auction pack to attract potential buyers. For Buyers, you need a trusted conveyancer to scrutinise an auction pack so that you’re fully informed of what you’re buying. And both will require a conveyancer who knows how to speed up your property sale to completion.

What is a property auction?

A property auction is different to a typical property sale as potential buyers are allowed to “bid” on the property within a given timeframe, with the highest bid then becoming the buyer of the property. Unlike the usual property sales process where buyers may come through, view then never enter an offer price, property auctions tend to have multple buyers all vying for the same property at the same time, making it a useful method for sellers looking to find a buyer quickly, and buyers looking to get a property for a good price.

Property auctions come in two formats, traditional property auctions and the Modern Method of Auction (MMoA).

What is a traditional property auction?

Traditional property auctions often take place in person, usually at an auction house or dedicated venue. A selection of properties is usually sold on the day, with buyers bidding higher and higher until only one remains. Properties here will have a guide price (how much it is recommended to bid) and a reserve price (the minimum the vendor will sell the property for).

If a bid is won, the buyer is legally bound to the purchase, paying a 10% deposit and immediately exchanging the contracts. There is then a 28-day window for the purchase to be completed. Having a conveyancer who specialises in traditional property auctions is important, so that they can perform checks on the auction legal pack before you make a bid, be there to immediately exchange contracts and get your deposit transferred, and be proactive to ensure you complete within the 28 days. For sellers, your conveyancer will hold your buyer to account, and make sure all timelines are being kept, and that your legal pack is compliant and robust.

What is the Modern Method of Auction?

The Modern Method of Auction takes place online. For sellers, you’ll need to prepare a legal pack before the property goes live for buyers to bid on, which is where your conveyancer comes in. The legal pack contains the title deeds, searches, property information forms and any special conditions of the sale. Remember that you do not have to use the conveyancer recommended by your auction house.

Once all photography and information has been provided, the property will go up as an online listing, where users are made aware that is to be sold via auction. Unlike traditional auctions, online property auctions can last up to around 30 days, where buyers can put in bids up until the deadline. Once the deadline is reached, thew property is sold to the highest bidder.

From there, the seller will have 28 days to exchange contracts and then another 28 days to complete. For buyers and sellers, you will want a conveyancer who understands this process to ensure your best interests are kept, and that the sale goes smoothly.

What is the legal pack?

The legal pack is prepared by your conveyancer and is a requirement for any property being sold via auction. It will be available for any buyer who is interested in bidding on a property so that they can make an informed decision.

The legal pack should contan:

• Title Deeds
• Special Conditions of Sale (such as additioanl fees, changes to completion periods, insurance requirements etc)
• Property Information Form (TA6)
• Fixtures and Fittings Form (TA10)
• Leasehold or Management Information (if applicable)
• Tenancy Agreements (if applicable)
• Planning Permission Documentation (if applicable)

Conveyancers for a buyer should thoroughly review this pack before a bid is made, to ensure the buyer is getting a good deal. Conveyancers for vendors should ensure the pack is as robust as possible, to maximise the number of bidders, as a sparse legal pack is a red flag for seasoned property buyers.

What do Conveyancers do for property auctions?

A good conveyancer is there to make your property auction transaction as seamless as possible. There are firmer deadlines in a property auction than a traditional sale, so your conveyancer will ensure all necessary paperwork is completed, all payments made and that the buyer or seller on the other side is hitting their deadlines as well.

With such strict deadlines, it’s important to have a conveyancer that knows how to ensure exchange and completion happen within that timeframe, as failing to adhere to these deadlines can result in fines or the sale falling through.

Your conveyancer is there to ensure the legal pack is managed from a buyer and seller’s perspective, and immediately exchange and transfer any fees or deposits once the property is sold.

It’s safe to say that your auction conveyancer wil be there from before the auction begins, right up until completion, so it’s a good idead to start looking for one before you bid on a property or put yours up for auction.

How much does Auction conveyancing cost?

To find out how much your property auction conveyancing may cost, use our handy fee estimate tool.