Buying a house at an auction is an effective way to enter the property market. However, conveyancing for an auction property is different than conveyancing for a normal purchase.
Potential buyers who are looking into auction properties, should consult with an experienced mortgage solicitor in London, such as Saracens Solicitors. If someone has expressed an interest in a specific property, then the auctioneers will give them a legal package. This package contains essential information about the property as well as other legal information that the bidder has to read carefully. A mortgage solicitor in London can help read between the lines and explain the procedure as thoroughly as possible.
How is buying a house at auction different?
The most important difference between property auction conveyancing and the ordinary purchase of a house is that the contract is binding as soon as the hammer falls. An ordinary purchase is not final until the seller and the buyer have agreed on the contract details and the contracts are concluded.
Therefore, there is a period of time between the initial agreement and the contract signing. During this period, the buyer and their mortgage solicitor in London will have the time to check the property’s titles and do a thorough research on the property. After this period has passed and the buyer is satisfied with the property, contracts will be exchanged and both parties will be legally bound to commit.
This doesn’t mean that buying a house at auction has to be hasty. The buyer will have time to read the legal package carefully prior to the auction, visit the property for inspection and even make enquiries about the property to the conveyancer. However, it is important to remember that all checks should be completed before the sale, because once the sale is done, then it is final.
Be adequately prepared
It is never a good idea to go to an auction and bid for a property without having a good background knowledge. The best strategy is to consult a mortgage solicitor in London, get a title report from a conveyancer and conduct a proper building survey.