Buying a Property at Auction (UK)

Purchasing at auction ensures an instant swap of contracts with no dragged out negotiations or problems. Most Auctioneers sell properties all over the UK and the world, enabling you to find an investment wherever suits you.



If you are thinking of buying a property at one of these auctions, finding out as much as possible in relation to the property and the sale process before you bid is vital.



1. Investigation



Information on all properties, legal information and dates of potential auctions will be offered from the auctioneers. It is also crucial to inspect earlier catalogues to get a feel for demand and prices.



2. Identify lots



An up to date catalogue will be obtainable from the auctioneers. Look through the catalogue and identify individuals lots that may be of appeal.



3. Guide prices



Guide prices are not necessarily prices at which a property will sell for; they are only intended to be a guide of the seller’s minimum expectation. They are subject to change during the marketing period so methodically check the guide prices prior to auction.



These can be collected on the sites under "guide prices". If you register as a subscriber you will normally receive guide prices by email.



4. Inspection/Viewing property



You should always go and see the property before you bid. To organize to view a property you should either follow the advice on the lot web page or if there are no instructions, speak to the office of the individual auctioneer who will arrange an appointment for you. Note that at least 48 hours prior notice is normally required.



5. Legal documents



If you wish to receive special conditions of auction or legal documentation in respect of any lot, contact the office of the Particular auctioneer. Documents may be accessible to download from the website for free, otherwise they will be available from the vendors solicitors, typically at a cost to cover the copying. Solicitor’s details for each lot can be normally be found on the web lot page or in the catalogue.



If you need further legal information, contact the vendor’s solicitor. Official packs will commonly be available for examination in the auction room, although this cannot be guaranteed. Remember that you buy according to all documentation and conditions of contract whether or not you have read them. It is imperative that you check with the vendor’s solicitors prior to the sale to ensure that you receive any documents subsequently available.



6 Addendum/Changes to Property Information



Occasionally changes need to be made to the lot information or the Special Conditions of auction. These can be found on the website under "Addendum". Prior to your bid, it is essential that you check for any changes that may have happened, even up to the day of the auction.



7 Sales preceding to the Auction



In some instances a vendor may consider selling his property before the auction. It is worth registering your interest in a particular lot with the auction team as they will keep you up to date, wherever possible, of any risk of the lot being sold prior to auction. You can produce an offer at any time up to the date of the auction, but if your offer is accepted you will have to be in a position to exchange contracts and pay your deposit immediately.



8 Put Together Finance



If you successfully bid for a property you will be required to provide a 10% deposit on the day of the auction. You should make certain that you arrange any finance required to complete the sale well in advance of the auction.



9 Can’t attend the auction?



Proxy/ Telephone/ Internet Bidding

If you are unable to attend the sale, you can bid by telephone by proxy in writing (where you specify your maximum bid and the auctioneer bids on your behalf) or on-line. The individual auctioneers should be contacted to organise this arrangement.



10 Find out if the property is still vacant



Likely purchasers should always either look on the website or ring on the day prior to the auction, to make sure that the lots in which they are interested are still offered.



11 Understand all terms & conditions



Purchasing property at auction is not the same as buying property privately, and budding purchasers are strongly advised to check that they have read and understood all the associated legal documents and terms & conditions.



Before the auction:



1 Things to bring with you:



* Your catalogue

* Cheque book with at least one cheque for each lot.

Please note that neither cash nor credit or debit cards

Are accepted.

* Identification – either your driving licence or passport

(for photo ID)

* Details of the solicitors you intend to use



2 Do I need to register?



Unless on the respective web page or stated in the catalogue for a particular lot, you should not need to register. Simply pick up an order of sale (see below) and the most recent addendum (see below) and take a seat.



3 Order of Sale



This is a complete and up to date list of all the lots that will be sold on the day and in what order. Some lots will have been withdrawn or sold prior so you should check this list carefully to ensure that the lot you have come to buy is still included in the sale.



At the auction



1 Addendum



Occasionally changes need to be made to the lot information or the Special Conditions of Sale. Before you bid it is crucial that you check the printed addendum and listen for any announcements made specifying any changes that may have occurred as these will form part of the Memorandum of Sale.



2 Start of Auction



The auction will start immediately at the time stated in the catalogue. The auctioneer will make a number of announcements about the auction procedure. A rundown of the auctioneer’s pre-sale announcements will be printed in the catalogue and will appear on the website.



3 Bidding



The auctioneer will announce each lot and refer to any last minute changes. The current lot number is usually displayed on a screen next to the auctioneer, which will also display the last bid taken for the lot being offered. The auctioneer will invite bids at a particular level and you can make this bid by raising your hand or catalogue. The auction room is likely to be full, so make your bids clear and ensure you have the Auctioneer’s attention.



All lots will be offered for sale subject to an undisclosed reserve price (unless stated otherwise). The auctioneer will control the bidding increments and the property will be ‘knocked down’ to the highest bidder, assuming that the reserve is met or exceeded. Note that enquiries will not be taken by the auctioneer from the floor once the auction is in progress.



If you do have any last minute queries, you should speak to a member of the auction team. If you have any doubts, do not bid.



4 On the fall of the gavel



When the hammer falls, if you are the highest bidder, you have purchased the lot and a legal and binding contract has been formed.



What happens if I am the successful bidder?

When a lot is ‘knocked down’ to you, you will be asked to complete a purchaser’s slip, give a deposit cheque and provide identification.



Purchaser’s Slip

You will be asked to give your contact details, the name to appear on the memorandum of sale and details of your solicitor.



Deposit cheque

You will be asked for a deposit cheque for the deposit, normally 10% of the purchase price. Please note that cash deposits are not accepted. Personal cheques, company cheque and bankers drafts are acceptable subject to the Conditions of Sale and to the provisions of the notices to prospective buyers.



Identification

You will be asked for photo ID so ensure you take either your driving licence or your passport.

5 Exchange of Contract



After completing the purchaser’s slip and handing over your Payment, you will be given a lot card by way of receipt. After About 10-15 minutes you should approach the contract desk in the room and hand this card to the staff there who you will ask you to sign the Memorandum of Sale. You will take away the Vendor’s part contract and give this to your solicitor. The Auctioneer will send your signed contract to the Vendor’s solicitor and completion will take place as specified on the special conditions of sale. Do not leave the auction room without taking your signed contract.



Also note that as soon as the sale has been made, the vendor is responsible for insurance on the property.



6 Unsold Lots



In the event that the property you wish to buy does not sell, you should register your highest bid with the auctioneer before you leave the auction room.



7 Results



Results can occasionally be viewed on the website after the auction.