Before You Bid: How to Approach an Auction Legal Pack with Confidence

An appealing photograph and an accessible guide price can make an auction property stand out. Before placing a bid, however, the legal pack deserves just as much attention as the property itself. September is a good time to build that habit if you are exploring your first auction purchase.

Know what you are buying

The legal pack brings together information about the property and the proposed sale. Depending on the lot, it may include title documents, searches, lease information, tenancy papers and special conditions. Contents vary, and the presence of a pack does not mean every issue has been resolved. Ask a solicitor experienced in auction purchases to review it before you commit.

Look beyond the purchase price

Special conditions can affect the total cost and the obligations you take on. Ask your solicitor to identify any additional payments, completion requirements or unusual provisions. For leasehold lots, establish the remaining lease term and investigate service charges, ground rent and relevant restrictions. For occupied property, understand the tenancy position rather than assuming you will receive vacant possession.

Check that your funding fits the contract

A mortgage agreement in principle is not the same as a mortgage offer for a particular property. Some homes may not meet a lender’s criteria in their current condition. Confirm that your funding can be available within the completion period stated for the lot. Allow for applicable tax, fees and professional costs, and take appropriate advice before considering short-term finance.

Read updates as well as the original pack

Documents can be updated as the auction approaches. Check the latest legal pack and any auction addendum, and make sure your solicitor has considered changes before you bid. A viewing and, where appropriate, a survey should complement the paperwork. Neither photographs nor a catalogue description can replace your own due diligence.

Prepare first, bid second

In a traditional auction, a successful bid normally creates a binding contract at the fall of the hammer. Do not treat bidding as an opportunity to reserve a property while you investigate later. Decide your maximum bid after reviewing the legal position and all expected costs. Visit Phillip Arnold Auctions’ website to explore current lots and remote bidding information, and ask the team about the practical process before auction day.

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