How Long Do Buyers Have to Buy After an Auction?

The speed of a property auction means that you, as a prospective buyer, should be conscious of the payment timescales and have the funds or financing in place to remit the required amounts to secure the property against which you’ve submitted the highest bid.

So how long do you have to complete the purchase after an auction? In most cases, you pay a 10% deposit once the auction concludes, followed by the remaining 90% within 20 working days. 

Depending on the date of the auction, that usually means you have roughly four weeks from the end of the auction until the balance payment falls due.

Key Takeaways

• Commit to the Purchase - Recognise the legally binding nature of your bid at an auction. Once you submit a bid and it's accepted, you are committed to completing the purchase within the stipulated time frame to avoid losing your deposit or facing legal consequences.

• Prepare Your Finances Early - Ensure you have the necessary funds or financing arranged prior to participating in a property auction, as you'll need to pay a 10% deposit immediately after the auction concludes and the remaining 90% within 20 working days.

• Understand the Payment Terms - Familiarise yourself with the standard and any specific payment terms outlined in the legal pack, including any fees or charges beyond the deposit. This will help you avoid any surprises and ensure you meet all deadlines.

What Are the Standard Property Auction Payment Terms?

Sellers often choose an auction sale because the turnaround times from listing a property through to completion are significantly faster than other options, and the buyer commits to the purchase when submitting their bid.

There is little likelihood that a buyer will back out of the purchase after the auction since they will have paid a deposit and potentially stand to lose this if they breach the payment terms or otherwise decide not to proceed.

When the hammer falls, or the auction ends for an online auction, the buyer pays the deposit there and then. That deposit is usually 10% of the agreed price, although you'll also need to pay any other fees or charges associated with the transaction.

The legal pack, which you can download before the auction, will specify any variations on those payment due dates. For instance, if there are any conditions, or changes to the typical completion date that mean the buyer will have to pay sooner or will have an extended time in which to pay, this will be detailed in the pack.

You can read more about the auction legal pack here. 

Otherwise, the 20 working days apply from the day following the auction, and the auctioneer will clarify the arrangements and ways in which you can submit the balance payment to finalise the purchase.

Related Reading: How long does it take to sell a house at auction?

Failure to pay can be serious since the auction sale process is legally binding. 

A quote from our auctioneer: 

It’s highly advisable you only submit a bid during a property auction if you have every intention to proceed with the purchase and have the funds or financing in place to pay the same-day deposit and the full balance in 20 working days. 

James Emson, Auctioneer

What Happens Immediately After a Property Auction Ends?

Property auctions may run for a specific number of hours or over consecutive days, depending on whether you're attending an in-person auction or bidding online. 

Once the auction finishes, the successful bidder will be expected to sign a contract confirming the details of the transaction and pay the deposit.

In most cases, you are liable for insuring the property from that time onward, although again, this is something you can clarify with the auctioneer or check in the property details included in the legal pack.

If you have pre-registered as a verified online bidder, you may have already passed through verification checks. If not, you will usually be asked to provide two forms of identification to confirm that the name and details on the purchase contract are correct.

These processes are in place to protect the interests of both buyers and sellers. All parties know that the owner listing a property for sale or the buyer submitting a bid at auction is serious about the transaction and has conducted their due diligence in advance.

Please contact the Clive Emson team at any point if you'd like further information about the process of selling or buying a property at auction or how the payment systems work. Alternatively, you'll find a wealth of information within our published knowledge guides and articles.

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So, if you are thinking of selling your property at auction or have any questions about the process, then please call us on 0345 8500333 or complete the online form below for a free independent appraisal.