1.          Why buy at auction?

The attraction of buying at auction is clear: prices are often more competitive than the open market and the process is speedier than a conventional transaction.

2.         How do I find properties being sold at auction?

Contact the various Auction Houses and subscribe to their catalogue mailing lists.   Check the details of the properties you are interested in and arrange a viewing.

3.         If I find a property of interest, what should I do next?

The principal of buyer beware prevails in auction purchases just as in conventional transactions: it is imperative to detect any problems from the outset. You should instruct a Surveyor to check the property is structurally sound and to give an indication at the price you should be willing to bid for the property

4.         When should I instruct a Solicitor?

If you are to bid for a particular property you should ask the Auction House to send a copy of the Legal Pack relating to the property, to your Solicitor. This Pack will include the Auction Contract, the Title Deeds and the Searches. This will enable the Solicitor to check that the property is satisfactory from a legal perspective. You should ensure that your Solicitor has enough time to check the Pack prior to the Auction in order that any legal questions which may arise, can be satisfactorily dealt with.

5.         I am given the Green Light by my Solicitor, what should my next step be?

In the first instance, ensure that you have the finds in place to pay the 10% Deposit which will be paid to the Auctioneer if you are successful. You will also need to make sure financial arrangements are in place to pay the remaining 90% of the purchase price on the Completion Date. This Date will be set out in the Auction Contract and is often 20 or 28 days from the date of the Auction.

6.         If my funding is in place, what should I do next?

A course of action often neglected, it is worth taking a chance and calling the Auction House to consider whether the Seller would accept an offer on the property and withdrawal it from the Auction. The response will largely be determined by the interest, or lack of it, in that particular property, coupled with the desire of the Seller to dispose of the property and obtain the purchase price earlier than anticipated. In any event, it is worth making a call.

7.         If the offer is not accepted, what should I do at the Auction?

You will need to attend the venue where the Auction is taking place (or in certain instances, bids can be made via telephone) and bid for the property. Give yourself plenty of time so that you feel relaxed and comfortable and more importantly, set yourself a bidding limit that you will not exceed, no matter how much the adrenalin is pumping!

8.         What are the legal implications of making a bid?

You must be aware that the buying an auction is a binding commitment: The moment a bid is accepted, then you are legally obliged to complete the purchase on the specified Completion Date. This is a fact that is often not appreciated by a bidder and its significance cannot be overstated.

9.         What happens if my bid is successful?

The Auctioneer will take you to a designated area and will ask you to sign the Auction Contract and to pay to him a 10% Deposit.

10.       Do I need to contact my Solicitor again?

Following the Auction, you will need to send a copy of the Auction Contract to your Solicitor. He will then make the necessary arrangements with the Sellers Solicitor to take the matter through to Completion. This will include drawing up the Transfer Document which will have the effect of legally transferring the property to you on the Completion Date. He will also make the necessary arrangements for you to transfer the balance of the purchase price to him which in turn will be forwarded on to the Sellers Solicitor on the Completion Date. He will then register the transfer at the Land Registry evidencing your ownership of the property.

If you need any advice regarding buying or selling at auction or any residential or commercial property related issue please contact Andrew Foley Jones at Mackenzie Jones Solicitors on 01745 536030, by email at afj@macjones.com or by visiting www.macjones.com