Know what you are buying before the hammer falls.
At a traditional auction the contract is formed the moment the hammer comes down. There is no survey period afterwards, no chance to renegotiate and no way out. Everything a normal buyer does between offer and exchange has to happen before you raise your hand, which is why we read the legal pack first and tell you what the lot actually costs.
What it covers
The order is the whole point.
Auction conveyancing is not a different kind of legal work. It is the same purchase, in a different order, against a clock you cannot move.
In an ordinary purchase your offer is not binding, so the legal work happens after it and you can walk away if something turns up. At auction that safety net is gone. The searches, the title, the lease and the special conditions all have to be understood while you can still decide not to bid, and the completion deadline starts running from a date you do not control.
Before you bid
What we prepare while you can still walk away.
Five things that have to be finished before the auction, not after it.
- 01
The legal pack, read properly
Title, searches, special conditions, leases and any tenancy. This is the document that tells you what you are actually buying and what you are agreeing to pay for on top.
- 02
Special conditions of sale
Where the costs hide. Buyer's premium, the seller's legal fees, search fees and contribution to arrears are routinely passed to the buyer here, and none of it appears in the guide price.
- 03
Searches, or the lack of them
Auction packs often include searches the seller ordered months ago. Your conveyancer checks whether they are recent enough for your lender, and orders replacements while there is still time.
- 04
Finance that can actually complete
A standard residential mortgage rarely completes in 28 days. If you are borrowing, your firm needs to know before the auction whether the lender can meet the deadline, or whether bridging is the honest answer.
- 05
Identity and source of funds
Credas-verified ID and funding evidence done in advance, so the day after the auction is spent on the transfer rather than on paperwork you could have finished a fortnight earlier.
Traditional auction
Contract on the fall of the hammer.
Deposit on the day, and completion to a deadline set in the pack rather than by law.
- 01
Legal pack released
Usually two to three weeks before the sale. Get it to your conveyancer the day it appears; a pack reviewed the night before the auction is a pack reviewed too late.
- 02
Pre-auction review
Your firm reports on the title, the special conditions and anything that changes what the lot is worth to you. You decide your maximum bid knowing the real cost.
- 03
The hammer falls
Contracts are exchanged there and then. You are legally committed, the risk passes to you, and you should insure the property from that moment.
- 04
Deposit on the day
Conventionally 10 percent, payable immediately. Non-refundable in almost all circumstances if you fail to complete.
- 05
Completion, typically 28 days
Set by the contract, not by law. Some lots run to 14 days and some to 56. Whatever it says is binding, and missing it puts your deposit and the property at risk.
Modern method
A reservation, not an exchange.
Also sold as conditional auction. It is a genuinely different contract, and the differences cost money.
You win, but you have not exchanged
Under the modern method (sometimes called conditional auction) winning secures a reservation rather than a contract. Exchange comes later.
A reservation fee, not a deposit
Typically a percentage of the price or a fixed minimum, paid on the day and usually non-refundable. It is often on top of the purchase price rather than part of it.
Two clocks, not one
Commonly 20 working days to exchange and a further 20 to complete. That is more forgiving than 28 days end to end, and is why the modern method suits mortgage buyers better.
The risk is different, not absent
You are not contractually bound to buy, but walking away normally costs you the reservation fee. Read what the reservation agreement actually says before you bid.
The fee
Fixed before you instruct.
So you can factor it into your maximum bid rather than discover it afterwards.
Included
- Full legal pack review and a written report before the auction
- Title checks and official copies from HM Land Registry
- Searches ordered, or existing searches assessed for lender acceptability
- Special conditions reviewed and the true cost of the lot explained
- Exchange and completion handled to the contractual deadline
- Stamp Duty Land Tax return and payment
- Registration of your ownership with HM Land Registry
Paid separately
- The deposit and the purchase price itself
- Buyer's premium or reservation fee charged by the auction house
- Any seller's costs the special conditions pass to you
- Stamp Duty Land Tax, which is payable to HMRC
- Survey or valuation fees
- Bridging finance arrangement fees, if you use it
Where it goes wrong
The four expensive mistakes.
Every one of these is avoidable, and every one is avoided before the auction rather than after.
You bid on a pack nobody read
The single most expensive mistake in auction buying. The contract binds you to whatever the special conditions say, whether or not you have read them.
Your mortgage cannot complete in time
A standard residential offer typically takes longer than 28 days. If the lender cannot meet the contractual date you lose the deposit and can be sued for the shortfall on a resale.
The lot is unmortgageable
Short leases, no kitchen or bathroom, structural problems, non-standard construction. Plenty of auction lots are there precisely because a lender would not touch them.
Arrears and liabilities come with it
Unpaid ground rent, service charges, or a major works notice on a flat can transfer with the property. The legal pack should reveal it; only a review will find it.
Questions
Auction conveyancing, answered.
The ones people ask before their first auction.
Do I need a solicitor before the auction or after?
- Before, and it is not close. At a traditional auction the contract is formed when the hammer falls, so there is no window afterwards in which to take advice. Your conveyancer's work on the legal pack is what tells you whether to bid at all and what the lot really costs.
How long do I get to complete an auction purchase?
- Traditionally 28 days, but the period is set by the contract in the legal pack rather than by law. Fourteen and 56 days both appear. Under the modern method it is commonly 20 working days to exchange and another 20 to complete. Always work from the deadline in your own pack.
Can I use a normal mortgage to buy at auction?
- Sometimes, but you need to be honest about the timetable before you bid. Many lenders cannot get from offer to release of funds inside 28 days, and the property itself has to be one they will lend on. Buyers often use bridging finance and refinance onto a mortgage afterwards.
What happens if I cannot complete on time?
- You normally lose your deposit, and the seller can charge interest, resell the lot and pursue you for any shortfall plus costs. This is the reason the finance question has to be settled before the auction rather than after.
What is the difference between traditional and modern method of auction?
- Traditional exchanges contracts on the fall of the hammer, with a deposit and a fixed completion deadline. The modern method gives you a reservation instead, with a non-refundable reservation fee and a longer window to exchange and complete. The modern method is generally more workable for mortgage buyers, but the fee is usually on top of the price.
Do you charge more for auction conveyancing?
- The quote reflects the work, and an auction purchase includes a legal pack review that a standard purchase does not. What does not change is that the fee is fixed and quoted before you instruct, so you know it before you decide whether to bid.
Other services
If your move is not an auction.
Other services
- Buying a homeFixed-fee conveyancing for your purchase, with searches started early.
- Selling a homeYour contract pack and protocol forms ready before a buyer is found.
- Buying and sellingBoth ends of the chain, one firm, one file, one completion date.
- RemortgageSwitching or renewing your deal, with your lender's requirements met.
- Transfer of equityAdding, removing or buying out an owner without selling the property.
Ready when you are
Send us the legal pack before you bid.
Tell us the lot, the guide price and the auction date. We come back with a fixed fee and a panel firm that can work to your completion deadline, so you know the real cost before you decide what to bid.