Pre-Auction Conveyancing Solicitors in London and UK

Pre-auction conveyancing refers to the legal process of handling property transactions that occur before an auction in the United Kingdom. When a property is put up for auction, potential buyers have the opportunity to conduct due diligence and obtain legal advice before bidding on the property. Pre-auction conveyancing ensures that all necessary legal checks and documentation are completed before the auction takes place.

Reviewing an auction legal pack

As a buyer, you can obtain the auction legal pack from the auctioneer or the seller’s solicitor prior to the auction.

Reviewing an auction legal pack is a crucial step in the pre-auction conveyancing process. The legal pack contains important documents and information about the property being auctioned, and it is provided by the seller’s solicitor. Here are some key considerations when reviewing an auction legal pack:

1. Title Deeds – The legal pack should include the property’s title deeds, which provide information about the ownership and any restrictions or charges affecting the property. Reviewing the title deeds helps ensure that the seller has the legal right to sell the property.
2. Searches and Reports – The legal pack should include various searches and reports that provide information about the property. This may include local authority searches, environmental searches, planning reports, and drainage searches. Reviewing these documents helps identify any potential issues or restrictions that could affect the property.
3. Special Conditions -The legal pack may contain special conditions specific to the auction sale. These conditions outline any additional requirements or obligations that the buyer must adhere to if they are the successful bidder. It is important to carefully review these conditions to understand the implications they may have on the purchase.
4. Leasehold Information – If the property is leasehold, the legal pack should include the lease agreement and associated documents. It is important to review the lease terms, including the length of the lease, ground rent, service charges, and any restrictions or obligations imposed on the leaseholder.
5. Planning and Building Regulations – The legal pack should include any planning permissions, building regulation approvals, or other relevant documents related to alterations or developments on the property. Reviewing this information helps ensure that the property complies with the necessary regulations.
6. Tenancy Agreements – If the property is tenanted, the legal pack should include copies of the tenancy agreements and relevant documentation. Reviewing these agreements helps assess the status of the tenancy and any obligations or restrictions that may apply.
7. Other Legal Documentation – The legal pack may contain additional legal documentation, such as warranties, guarantees, or insurance policies. Reviewing these documents helps assess the property’s condition and any associated warranties or guarantees.

Auction Legal pack review cost

At Creative Legals we review your Auction Legal Pack in 24 hours at a fixed cost of £150 plus VAT.

FAQs on Pre-Auction Conveyancing

What does a solicitor do when buying a house at auction

When buying a house at auction, a solicitor plays a crucial role in the pre-auction conveyancing process. Their responsibilities include

1. Reviewing the Legal Pack: The solicitor will carefully review the auction legal pack, which contains important documentation and information about the property. They will assess the title deeds, searches, leases (if applicable), special conditions, and other relevant documents to identify any legal issues or risks.
2. Advising the Buyer: The solicitor will provide legal advice to the buyer based on their review of the legal pack. They will highlight any potential concerns, legal implications, or obligations associated with the property. The solicitor will ensure that the buyer understands the terms and conditions of the auction sale.
3. Conducting Searches and Due Diligence: The solicitor will conduct additional searches and due diligence on the property to gather information beyond what is provided in the legal pack. This may involve local authority searches, environmental searches, or other specific searches to uncover any potential issues that may affect the property..
4. Exchanging Contracts and Completion: Once the buyer is satisfied with the legal aspects, the solicitor will guide them through the process of exchanging contracts and completing the purchase. They will handle the legal paperwork, coordinate the transfer of funds, and ensure that all necessary legal obligations are met.
5. Post-Auction Support: After the auction, the solicitor continue to provide support to the buyer, such as handling post-completion matters, registering the property with the Land Registry, or addressing any outstanding legal issues that arise.

How is a property sold prior to auction?

In some cases, a property scheduled for auction may be sold before the auction takes place. This can occur through a process known as a “pre-auction sale” or “pre-auction transaction.” Here’s how it typically works:

1. Negotiation: Interested buyers can submit offers to the seller or their agent before the auction. The negotiation process is similar to a traditional property sale, where the buyer and seller try to agree on a purchase price and other terms.
2. Accepted Offer: If the seller finds an offer acceptable, they may choose to accept it and sell the property before the auction. The terms of the sale, including the purchase price, deposit, and completion date, are typically documented in a contract.
3. Exchange of Contracts: Once the offer is accepted, the buyer’s solicitor and the seller’s solicitor proceed with exchanging contracts. This makes the sale legally binding, and both parties are obligated to complete the transaction according to the agreed-upon terms.
4. Completion: On the agreed completion date, the buyer pays the purchase price, and the seller transfers the ownership of the property. The buyer takes possession of the property, and the conveyancing process is finalized.

It’s important to note that the process of selling a property prior to auction may vary depending on the specific circumstances and the terms negotiated between the buyer and the seller. The involvement of solicitors or conveyancers is crucial to ensure that all legal aspects are handled properly.

Are auction properties sold as seen?

Yes, auction properties are typically sold as seen. Unlike traditional property sales, where buyers often have the opportunity to conduct extensive property inspections and surveys, auction properties are usually sold without warranties or guarantees. The buyer is expected to thoroughly inspect the property and carry out due diligence before the auction.

Do auction houses charge the seller and the buyer?

Yes, auction houses typically charge fees to both the seller and the buyer. The specific fees and percentages may vary among different auction houses, so it’s important to check with the auction house directly for their fee structure. Generally, the seller is responsible for paying a seller’s commission or fee, which is a percentage of the sale price, upon a successful sale.

The buyer may be required to pay a buyer’s premium, which is an additional fee added to the final bid price. These fees are in addition to any other costs associated with the transaction, such as legal fees or stamp duty.