Property Auctions
‹ Back to list 19 Apr 10
Over the last year or so, we have noticed how property auctions have increased in popularity. Sellers have realised that they can obtain better prices given the competition between prospective bidders who, in turn, think they may be in line for a bargain. Sellers love it because they know that when the hammer falls, the property is sold and they can plan ahead.
What makes a successful auction? Good preparation before the auction and close liaison between the solicitor and the auctioneer, we have found, are the key elements of a successful sale. In preparation for an auction we create a pack of information about the property including copies of the title deeds, special conditions of sale, relevant searches and copies of any planning permissions, building regulation control certificates and any guarantees. This is called the Legal Pack.
When prospective purchasers telephone for the Legal Pack, we can engage them to assess whether they are seriously interested or just window shoppers and report the level of interest to the auctioneer before the final reserve price (being the price below which the property cannot be sold) is set.
In turn, prospective bidders are well advised to call us prior to the auction to check the Legal Pack. Remember that the auction house can be the sale of last resort of a dodgy property. A bidder who has not done his homework could land up with a house suffering from subsidence, be on contaminated land, have squatters or sitting tenants or even have a potentially fatal defect in the title. The old maxim holds good “let the buyer be aware”.
If you are thinking of either selling or buying at auction, please give us a ring.
Anthony Marris
Commercial Property Solicitor
