Are property auctions just for investors and developers?

Are property auctions just for investors and developers?

With the current stamp duty holiday and time in lockdown influencing peoples lifestyles, buying at auction could offer many an alternative way of buying their dream home or starting a property portfolio.

But aren’t property auctions just for developers and investors? Ipswich based Attwells Solicitors don’t think so and, to help, they have published a helpful guide to preparing for a property auction on their website; just in time for the September 9th property auction scheduled at Auction House East Anglia.

“Buying at auction is a great way to develop your property portfolio or begin one. Likewise, selling at auction can help achieve a quick sell or enable you to sell a property that requires structural work or alterations” Attwells suggest.

As part of an auction sale the auction house takes care of the marketing and viewings but an Auction Pack relating to the property will need to be prepared or made available (depending on whether you are the buyer or seller). The legal pack is the responsibility of the seller and contains various documents relating to the property. It is key to ensuring a successful auction sale.

“Our Auction team can help you with the legal work required to buy and sell at auction and we pride ourselves on being able to offer a 48-72 hour turnaround from the point of receipt of the pack” comments Senior Solicitor, Tanya Warnes.

The contents of the legal pack may address ‘Conditions of sale’ and this is why taking a professional opinion is vital, as only solicitors will be able to interpret the conditions of the contract and apply it to the remainder of the pack to be able to give you an overview of whether the title to the property is good and marketable.

Attwells also recommend heeding reference to ‘Other Financial Conditions’ usually added to a contract to limit vendors costs. This could be fees they have paid for: – searches, – auctioneer fees, – leasehold pack fees etc. However, there may also be financial conditions which are not specified but left purposefully vague. Any financial condition which is not specified with a specific sum is a red flag.

Having a ‘Legal Review’ carried out will give you the certainty that the seller’s solicitors hold the relevant pieces of evidence needed to prove ownership and in turn that they will provide any documents which may be needed for your registration on successful purchase of the property.

For further information about buying or selling at auction visit the Attwells website or speak to Tanya Warnes on 01473 239857 to discuss a legal pack.

 

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