FAQs: Property Auction Solicitors

If you’re buying, a solicitor will check the auction legal pack before the auction. They’ll look for any potential issues and carry out property searches to help you understand exactly what you’re buying. The solicitor will also review all relevant documentation to assess legal risks and ensure a smooth transaction.

If your bid is successful, they’ll handle all the legal work needed to complete the purchase on time (which is especially important with the strict auction deadlines).

If you’re selling, your solicitor will prepare the legal pack and relevant documentation in advance.

A conveyancing solicitor is a legal specialist in property law, focusing specifically on the legal aspects of buying and selling property.

A general solicitor is qualified in broader areas of law, and while they can assist with property transactions, a conveyancing solicitor will have more in-depth experience and knowledge.

For auction transactions, it is particularly important to work with a specialist solicitor, as they are familiar with the unique legal complexities, potential pitfalls, and detailed review of auction legal packs required for a secure purchase.

An auction legal pack is created by the seller's conveyancer and should include key conveyancing searches, such as local authority and water searches. The auction pack is tailored to each individual property and contains property-specific legal information, including terms, conditions, and searches relevant to that property.

Your conveyancer will be able to identify if anything is missing from the pack and can contact the seller’s conveyancer to request any additional information.

By thoroughly reviewing the legal pack, you can move forward with greater confidence, knowing you have all the necessary information to make an informed decision.

It’s highly recommended to get your chosen property surveyed by an RICS Surveyor before the auction. You can opt for a Level 2 Homebuyers Survey or the more thorough Level 3 Building Survey.

The survey will identify structural issues and give a professional opinion on the property’s condition. It may also reveal whether any alterations or extensions have been made without the necessary planning permission, which could impact the legality or future development of the property.

Alongside the survey, you should also get a valuation. This gives you an accurate figure to help guide your bidding.

An experienced solicitor will be able to advise on any issues that arise as a result of these surveys and can recommend whether you should purchase the property.

At traditional auctions, once the gavel falls, the buyer enters a legally binding contract and must complete the purchase within 28 days. Property auctions typically have a fixed completion date, providing certainty for both buyers and sellers about when the transaction will close. With the modern method of auction, the timeline is slightly longer: typically 56 days from the winning bid.

While this timeframe can be advantageous, it requires a lot more preparation upfront for a property you might not ultimately win.

Choosing a solicitor experienced in this field is helpful as they will work towards these timelines and ensure everything is completed on time.

Properties that are auctioned can have some issues around the title such as it being unregistered or having defects, resulting in difficulty selling on the open market. It is the seller’s responsibility to disclose these beforehand. If they don’t it can take time to resolve. This can result in the buyer making a claim against the seller.

Whether you are a buyer or seller, having an experienced solicitor before the auction can help spot these issues, saving you both time and costs.

Before bidding at an auction, you should conduct thorough research. Research the type of auction and any additional fees you may need to pay beyond the purchase price, along with the deadlines for exchange and completion.

Be sure to review the auction brochure for important details about the property, fees, and buyer's premiums. Also, remember to view the property multiple times.

As part of the process, it is advisable to obtain both a valuation and a home survey of the property you intend to bid on. While this step may seem unnecessary due to the possibility of an unsuccessful bid, it can be highly beneficial if your offer is successful. Both surveys can provide clarity on the property’s condition and value.

After a successful bid, arranging building insurance is an important step to protect your investment and to meet lender requirements.

When purchasing with cash, you must ensure that your funds are accessible to meet the auction deadlines should your bid be accepted. You must provide your conveyancer with full source of funds evidence before the auction.

If buying with a mortgage or loan, you’ll need to check you can borrow the amount required. Mortgage lenders may have specific requirements for auction properties, often assessing the property's condition and marketability, which can affect your ability to secure a mortgage.

Some buyers consider bridging loans as a fast-acting financing option to meet tight auction deadlines, especially when traditional mortgage arrangements may not be completed in time. You must also confirm with your conveyancer that the auction deadlines can be met. This is because the completion of a mortgage and/or loan will involve extra legal work that could cause delays.

Your conveyancing solicitor will look through the legal pack. They will also complete the relevant conveyancing searches. This should happen before the auction.

Arriving promptly on auction day gives you time to read any changes made to the property listing through an addendum. It will allow you the opportunity to speak to your conveyancer beforehand to ensure everything can continue as planned. During the auction, participants can place multiple bids, and the highest bid at the end secures the property.

Following your successful bid, you will have 28 or 56 days to complete the purchase. The completion date is the scheduled day by which the transaction must be finalised, including transferring funds and registering the property. This includes registering your ownership and paying the rest of the balance.

Your solicitor will handle the registration of the property with HM Land Registry to ensure your ownership is officially recorded in the land registry. Check with the auction house for their terms.

To purchase a property at auction, you'll need to provide photo ID and proof of address, such as a recent utility bill or bank statement. You'll also need to show evidence that you can afford the deposit, which is usually 5% or 10% of the purchase price.

If you are unsure whether you have the correct documentation, you can check with your solicitor beforehand.

Auction purchases come with a range of additional costs, some of which are outlined in the legal pack. While many of these fees start as the seller’s responsibility, they’re often passed on to the buyer through specific clauses.

Your solicitor will review the legal pack before the auction and flag any unexpected or unfair costs, giving you a clearer picture of what you’re really committing to. This can include administrative fees, legal charges, or even non-standard clauses tucked into the small print. Some solicitors offer fixed fees for auction conveyancing services, providing transparency and certainty over your legal costs.

Here are some of the typical costs you may need to budget for:

 *These figures are based on the average UK property price of £292,000.

Even when purchasing a property at auction, you are still required to pay the relevant stamp duty: Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land Transaction Tax (LTT) in Wales, or Land and Buildings Transaction Tax (LBTT) in Scotland. This must be paid within 28 days of the auction date.

The estimated tax would be £4,600 in England and Northern Ireland, £4,020 in Wales, and £4,200 in Scotland.

Your solicitor will be able to transfer the stamp duty owed to HM Revenue and Customs (HMRC).

*These figures are based on the average UK property price of £292,000, Use our stamp duty calculator to determine the exact amount for your purchase.