Auction Sales & Purchases Conveyancing Solicitors on Isle of Wight

Buying a property at auction offers the chance of a tempting bargain or an unusual property such as a folly or a lighthouse which cannot be valued through conventional means.

Your successful bid is a binding commitment to buy and has all the legal obligations of a conventional contract.

Before a sale, the auctioneers usually provide a catalogue giving details of each property. This catalogue is sent to anyone who requests it and gives prospective buyers a chance to arrange a viewing before the sale.

If you are interested in a property in the catalogue, you should find out all you can about it before the day of the auction. For example, you should:

• Look into the history of the property.
• Investigate the location.
• Check the state of repair.
• If possible, have a chat with one of the neighbours and make sure that the catalogue description and estimated guide price match the market value.
• If you’re concerned about the condition of the property, it could be worth involving a surveyor and maybe a builder as well to find out how extensive the renovations required are and how much they will cost to undertake.

After these investigations contact the Glanvilles Damant Property Team for support on how to proceed.

Why choose Glanvilles Damant for your auction property conveyancing?

First of all, Glanvilles Damant will check the catalogue conditions of sale and advise on any legal issues therein. We’ll carry out all the usual land and property searches for you to make sure there are no nasty surprises later. If you are thinking of making alterations to the property, we’ll ascertain whether there are any potential problems with your plans.

If everything is in order, you can go ahead and make your bid:

• You’ll need a 10% deposit on the day of the auction, so you’ll need to make financial arrangements to make sure these funds are available.
• If your bid is successful, the remaining 90% needs to be paid within 28 days (or whatever time period is specified in the Contract) or you lose your deposit.

Your successful bid is a binding commitment to buy and has all the legal obligations of a conventional contract.

Copies of the seller’s legal documents will be lodged at the auctioneer’s office. You need to make sure these are handed to the Glanvilles Damant Property team as soon as possible to ensure that the property is legally yours within the agreed time of the sale.

Frequently Asked Questions About Auction Purchases

What is an Auction legal pack?

An auction legal pack consists of documents assembled by the seller's solicitor, providing essential information about a property for prospective buyers before they bid at an auction. This is especially important when considering a property on the Isle of Wight or any other location. The legal pack can typically be accessed through the auction house or the seller's solicitor.

The legal pack generally contains these documents:

• Official copy of the property's register of title (office copy entry), title plan, or copy deeds, specifying whether the property is freehold or leasehold.
• Planning permission documents.
• Special conditions of sale, including vital details such as completion date, extra disbursements due upon completion, and overage clauses.
• Terms and conditions of sale, which follow the Royal Institute of Chartered Surveyors (RICS) 4th edition Common Auction Conditions for most reputable auctioneers.
• Other pertinent documents like leases, tenancy agreements, and searches related to conveyancing enquiry.

Before bidding on a property, potential buyers should examine the legal pack and consult a solicitor or conveyancer experienced in auction sales, particularly one offering a fixed fee service. Failing to review the legal aspects of a property purchase at auction can lead to significant financial losses. It is essential to understand the implications of a leasehold or freehold property, as well as any other aspects of the sale or purchase process. The legal pack remains valid for six months from the date the documents are issued.

Where can I find an Auction legal pack?

To find an auction legal pack, prospective buyers can usually access them via the auction house's website via a link on the property details page.

A hard copy of the legal pack is usually available in the auction room as well. It is recommended that all elements of the legal pack are inspected by those wishing to bid and their legal advisors.

Can a first-time buyer purchase a property at auction?

Yes, a first-time buyer can purchase a property at auction as long as they have their financing in place.

In most auctions, buyers cannot finance the purchase with a mortgage, so they need to be prepared with cash to bid. Before participating in an auction, bidders must agree to the terms of the auction by completing the requisite paperwork or accepting an end-user license agreement. It is important to conduct due diligence prior to the auction, attend the auction with funding in hand, and often register with the auctioneer and receive a bidder number.

There are instances where buyers obtaining mortgage finance can purchase property at an auction but there are a number of factors which make this a difficult process to manage. Please see the section on I am not a cash buyer. Can I buy a property at auction? below:

As an auction purchaser, do I need a solicitor?

The simple answer is yes. As an auction purchaser, you will need a solicitor to help you with the legal aspects of buying a property at auction.

Your solicitor is vital in the legal due diligence process that occurs before bidding. They will guide you through the legal pack contents and help you steer clear of potential errors and unwarranted expenses. It is advisable for buyers to consult a solicitor before the auction to guarantee they have the essential legal support when needed. Auction property solicitors should examine matters like the special conditions in the auction contract, which can significantly differ from those in a conventional property sale.

I am not a cash buyer. Can I buy a property at auction?

You can purchase a property at auction even if you're not a cash buyer. Acquiring a property at auction with a mortgage is feasible, but it's crucial to initiate the arrangement as soon as possible. On the day of the auction, you'll need to provide a 10% deposit for the property, so ensure you can afford your bid and have immediate access to these funds. It's recommended to seek a mortgage deal where the lender can guarantee to complete the process within 20 days, as this is a requirement for auction purchases.

Nonetheless, it's important to note that most auctions don't allow financing with a mortgage, so being prepared with cash is essential for bidding. It is also important to note that many mortgage lenders will not lend on auction purchases. With this in mind, before participating in an auction, conduct thorough due diligence as to whether you are able to obtain a mortgage for the property you intend to bid on.

Why choose Glanvilles Damant's conveyancing service?

Choosing Glanvilles Damant's conveyancing service for your property transaction on the Isle of Wight offers several advantages. We have extensive knowledge of the local property market and are experts in handling residential conveyancing for both freehold and leasehold properties.

Our conveyancing service covers all aspects of property law, including stamp duty land tax or land transaction tax, depending on whether the property is in England or Wales. Our conveyancing fees are transparent, with no hidden costs. These conveyancing costs include both professional fees and disbursements, which are costs related to your matter that are payable to third parties. These may include land registry fees, fees for dealing with registration at the land registry, and payment of stamp duty land tax or land transaction tax.

As members of the Solicitors Regulation Authority, our conveyancers here at Glanvilles Damant adhere to the highest standards in providing legal services for all property matters. We have a solid track record of assisting first-time buyers, those moving home, and clients dealing with more complex property transactions, such as leasehold properties requiring an extension of the lease.

In summary, opting for Glanvilles Damant's conveyancing service ensures you receive comprehensive legal support from conveyancing solicitors on the Isle of Wight who have extensive experience with the local property market.