It can be an exhilarating feeling buying a house at auction be that in person or online. Your bid has been accepted and you are now the owner of a new property. For many buyers however this is when they first learn what they have bought. We recently had a client who purchased a leasehold property through auction to only then realise that the lease only had 13 years to go. For the client this was useless as he wanted the property as a family home. We were instructed to liaise with the freeholder to agree an extension of the lease (as the client did not qualify for an automatic statutory lease extension). We had another client who purchased an old chapel thinking that he could convert it into a living accommodation only to find after purchase that he did not have and would not get planning permission. We were instructed to resell the chapel at the next auction date. In both cases the clients saw a property they liked and purchased at auction but they did not conduct due sufficient due diligence before buying which would have avoided them problems. It costs both clients money to rectify the issues. 

‘Due diligence’ is what the conveyancing solicitor does for the you. The solicitor’s role is to review the documents contained in the auction pack and advise you on the issues affecting the property so you can make an informed decision. In reviewing auction pack it is also important to note what is ABSENT from the auction pack e.g. no environmental search, no energy performance certificate, no contents and fittings forms. If something you may expect to be present you the buyer must decide if you are willing to run the risk that you may buy a property with problems. That is the reality. There is in reality no scope to ‘raise queries’ with the seller’s solicitor so all you have is what is in the auction pack. So the lesson: if you see a good deal get a professional to review that auction pack. You need to know what you are buying before you buy!



If you need assistance buying (or selling) a property at auction feel free to call us on 0208858 5996.