Many sellers new to property auctions are unsure how the legal processes work. In short, you will need a solicitor or a conveyancer to manage the legal aspects of your property sale, and the best time to appoint a professional is before you enter your home or land into an auction.
Unlike a private treaty sale, the legally binding agreement occurs immediately when the hammer falls. Provided a successful bid is placed before the end of the auction.
Having a solicitor or conveyancer on hand is also essential for preparing the legal pack in plenty of time for the auction.. This ensures these are clear and properly communicated in the legal pack before the auction begins. The timing of instructing a solicitor is key.
Instructing a Solicitor When Selling a Property at Auction
- Sellers and buyers participating in property auctions require a solicitor or conveyancer to carry out checks and advise on their planned sale or purchase, just as they would with any other real estate transaction.
- The best time to appoint or instruct a solicitor is as soon as you have decided to enter a property into an auction, if you are selling or before you participate and place a bid if you are buying.
- Legal professionals can review terms, draft contractual clauses or provide input around aspects that might influence your decision to buy or sell a property.
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Do I need a Solictor?
Selling a house by auction is one of the largest financial transactions most people will engage in, which means you need a solicitor or a conveyancer to act on your behalf. Their primary role is managing the paperwork and offering independent advice based on your circumstances.
For some sellers, that guidance may be more complex, such as when selling a property as part of a probate process, when there are contentions about ownership rights, or when the proceeds from the sale will be split between separated partners or former owners.
In other cases, your solicitor may assist with the legal documentation, such as:
Putting together property information documentation or verifying that your documents, contracts and certificates are appropriate, up-to-date and compliant.
Advising on the financial aspects, including advice on the amount you may expect to receive , and providing support with any potential issues.
Providing input during the preparation of the legal pack, clarifying that all the essential details are accurate and correct, and dealing with any possible queries that arise.
Related reading: Do I need a solicitor to auction my property.
As the seller, you are responsible for ensuring you have the right to sell the property and provide all material information . While we can offer input as your auctioneer, usually based on the values achieved for similar properties in the local area, you should always ensure a solicitor has conducted all necessary due diligence on your behalf.
Examples could include situations with complexities around the legal title or where there are covenants and restrictions on the use or future development of the property, all of which must be resolved or clarified in the legal pack before the auction takes place.
Legal Support You May Require as a Property Auction Seller
The major contrast between a property auction and another sales process is that your solicitor's contributions will be most relevant when you assemble the legal pack—a downloadable package of information and documents offered to all potential bidders before the scheduled auction date.
Depending on the specifics of the house you intend to sell, your solicitor may need to assist with collating and verifying the details of:
Planning permission for existing changes or modifications or planning consent provisionally granted for future works or changes of use.
Plans and searches that include the exact property boundaries and perimeters.
Title searches and bankruptcy searches – a standard requirement in any property sale, and necessary to confirm there are no outstanding issues or securities against the home that might prevent you from selling.
The conditions and tenancy agreements are attached to leases or contracts.
Certifications for building regulations and energy performance.
Your solicitor can also help collate other information, such as inventory listings showing all the fixtures and inclusions within the sale price. This eliminates the potential for future complications if a buyer feels something is not as originally stated once the sale has concluded.
Hiring a Solicitor Before Selling a House at Auction
You may have a solicitor you have used before with sufficient real estate experience to manage the auction sale for you. However, having a legal representative who understands the property auction sale process remains important since this differs from a private treaty sale.
Otherwise, you can look for a solicitor or conveyancer who specialises in auction sales or compare pricing schedules from local solicitors to compare the anticipated fees.
Checking the Cost of Legal Representation as a Property Auction Seller
The costs of hiring a solicitor may depend on the complexities of the sale and the amount of work they need to complete, but many will offer a fixed fee or charge per hour and provide an indication of a maximum number of hours they believe will be necessary.
Sellers often choose a property auction due to the speed and convenience it offers. Equally, this means your solicitor will need to be ready to proceed and handle any necessary documents, signatures, and inspections in a timely manner to slot into the faster auction timescales.
Property auctions have an excellent success rate, which means that in most scenarios, you will be able to complete the transaction quickly.
In the rare scenarios where a property does not sell at auction the first time it is listed, you should verify whether the fees paid for searches and documentation collation remain payable ,since these are often paid upfront and are not refundable.
For more information about the legal and contractual aspects of selling at auction, you are welcome to contact the Clive Emson team at your convenience. Our experienced auctioneers will be happy to walk you through the process.
