Buying at auction is different to buying a property from an estate agent. If your bid is accepted on the property at auction you as the purchaser will be required to sign Contracts and pay a non-refundable deposit to the auctioneer. This means that on the day of the auction there is a binding Contract between you and the seller of the property.
Therefore it is important to note the following prior to attending and bidding at an auction:-
- You should arrange to have the property surveyed by an engineer/architect before the auction and have them also check the map and have them carry out a planning office search in the Local Authority Office.
- You should engage a solicitor and instruct them to review the Contracts and title documents as soon as possible prior to the auction so they can raise any queries that are necessary on the title or Contract provisions.
- You will need to have your financial arrangements in place prior to the auction and if you are obtaining a Mortgage the application will need to be arranged prior to the auction. Properties at auction are not sold subject to finance and a binding Contract will be in place if your bid on the property is accepted at auction.
- Prepare a budget and set your maximum bid limit. You should also be aware that there will be stamp duty costs and solicitors fees and outlay. At the auction do not be pressurised into making additional bids over and above your maximum bid limit.
- If your bid is successful at auction and once the hammer falls, you will be required to sign the Contract for Sale and pay a 10% non-refundable deposit.
- The signed Contracts and copy title documents will be sent to your solicitors and completion of the sale will usually take place within 4-6 weeks after the date of the auction.
For further information on buying a property at an auction please contact us by telephone or email.