Buying a Property at Auction

Buying at auction is a binding commitment and carries the same legal implications as signing contracts through a solicitor. In most cases, auction offices have copies of legal documentation provided by the seller's solicitors which can be sent to you beforehand and you should make sure that you get a copy of anything that is available and have it checked by a solicitor. You should also:-

• Contact the relevant auction house and request their catalogue, then go through their catalogue carefully and make a note of the properties you are interested in.

• Arrange a viewing of any lot that is of interest to you and, if necessary, organise a surveyor to do a survey of the property.

• Research the property thoroughly and ask local estate agents and neighbours for their opinions.

• Make sure the description of the lot is accurate.

• If any documents are missing from the legal pack, try to find out why and consider obtaining them for yourself.

• Make sure that you understand and are happy with the small print, both from the auctioneer and the seller.

• Make sure your financial arrangements are in place. It is essential that you have a 10% deposit ready for payment on auction day, when the contracts are signed, and access to the remaining 90% within the period set by the auctioneer for completion (often somewhere between 21 and 28 days).

• Plan ahead if you need mortgage assistance. It's wise to arrange a mortgage in principle with a bank or building society before buying at auction. You could lose your 10% deposit as well as being sued for damages if you fail to complete within the time given.