We have undertaken legal work for properties offered in Auctions for close to 50 years so we have an expertise and a wealth of experience that you can rely upon. We act for both sellers and buyers although obviously not in respect of the same property. Some Auctioneers recommend our services to their seller clients and maybe that is why you are on this page? In the past we have attended local Auctions on behalf of both sellers and buyers at their request to deal with any last minute issues.
Buying a property at an Auction is dangerous so you need to understand the process and you will need legal help and guidance. The preparation of an Auction pack for a sale requires expertise. If you are buying or selling a property at Auction our specialist property lawyers can provide the expert advice you need to avoid the pitfalls and will deal with matters quickly as speed is of the essence.
Long established in the area we have the local knowledge you need when buying or selling a property at Auction in Bolton, Cheshire or across the North West. However our expertise and reputation are such that we have helped clients buy and sell properties at Auction throughout England and Wales.
I want to buy or sell a property at auction, what should I know?
Start by giving us a call on 0800 103 2600 or complete an enquiry form and we will call you back. Our property team will be able to guide you through the entire process but here are some of the questions we get asked a lot:
I am a seller. How do I prepare for an Auction?
In the first instance you should contact us on 0800 103 2600. An enquiry costs nothing.
If you are considering selling at Auction - whether “Traditional” or “Modern Method” - you need a specialist property lawyer to prepare a comprehensive pack of legal documents for the Auctioneer. We will advise you on what documents should be included in the pack to give the property the best change of selling and at the highest price. A poor quality pack with essential documents or searches missing will attract lower bids than a better quality pack. We have considerable experience of preparing packs and know how and where to source the documents and information needed. We collate documents quickly and efficiently and provide them to Auctioneers in electronic format. You can instruct us through our portal to speed up the process. It makes sense of course for the same law firm to prepare the pack and then complete the sale when you have found a buyer. We can do this for you.
I am a buyer. How do I prepare for an Auction?
In the first instance you should contact us on 0800 103 2600. An enquiry costs nothing.
If you are considering buying at Auction you need an experienced property lawyer to review the pack of legal documents available from the Auctioneer. We will advise you on the contents and report to you generally. We will advise you on issues apparent from the pack and any omissions such as essential searches or deeds. You should have a survey carried out. You should make absolutely sure that your funds are in place and will be available to fund the deposit and to pay the full purchase monies by the date of completion. Having a DIP (decision in principle) from a lender does not guarantee that you will get a mortgage as a lender will still require a survey. Most buyers at Auction have cash funds available or take out what can be an expensive bridging loan.
You should not bid at an Auction without first taking legal advice as once your bid is accepted you are liable to proceed.
What is a 'traditional' auction?
It is a dedicated event on a specified day and time, where properties are sold for the highest amount offered and a binding legal obligation to proceed is at that time immediately placed on both parties. Some Auctions take place with the parties physically present at the Auctioneers rooms or similar. Some take place using facilities on the internet.
What happens at a 'traditional' auction?
A seller will enter their property or land (known as a “Lot”) into the Auction and it will be allocated a number. Prior to the Auction taking place, the seller will advise the Auctioneer whether to set a “Reserve”. If a Reserve is set the seller is instructing the Auctioneer not to sell for less than the amount of the Reserve. If a Reserve is set the amount is not made public. Setting a “Reserve” is different from giving a “Guide” price. A “Guide” price is simply the Auctioneers idea of what the Lot should fetch.
Bidding commences and once it appears there are no more bids the Auctioneer will withdraw the property from the Auction if the Reserve price has not been met otherwise the Auctioneer announces that an acceptable bid has been received, the hammer goes down and the winning bidder is legally bound to purchase the property at the price bid.
A deposit of 10% of the sale price is payable on the day by the buyer. There may also be fees due – these will be outlined in the legal pack for the Lot.
Are there other processes available and what is a Modern Method of Auction?
There are other ways of selling such as by “Conditional sale”, “Tender” or by “Put Option” or “Call Option”. Speak to us if you want advice on these alternative methods of sale.
The “Modern Method” of Auction is by comparison a type of conditional sale process. The winning bidder pays a reservation fee at the end of the Auction. This gives them an exclusive period in which to buy the property but a contract may not have been created and the sale may not be legally binding. The buyer then has 28 days to exchange contracts and a further 28 days to complete. If the buyer fails to complete within the allotted timescale the reservation fee is forfeit (the Auctioneer keeps it) and the seller has to look for a new buyer. So both parties are back to square one and the sale process starts all over again. This type of Auction again involves a pack being prepared and reviewed but the costs will not necessarily be recovered.
How much does it cost for the work you would undertake to buy a property at Auction?
We charge a fixed fee to review the legal pack of a property you’re interested in. The pack review fee is payable upfront.
We charge a separate fee for dealing with the second stage of the purchase process if your offer is successful. That fee is payable on or before completion of the purchase.
Contact us for details of our fees for the two stages of the purchase.
How much does it cost for the work you would undertake to sell a property at Auction?
We charge a fixed fee to prepare the Auction pack and sell a property on your behalf. The pack preparation fee is payable upfront. You can ask that the Auction Contract includes a condition that the successful buyer reimburses you for that fee on completion of the sale.
We charge a separate fee for dealing with the second stage of the sale process if you find a buyer at Auction. That fee is payable on or before completion of the sale.
Contact us for details of our fees for the two stages of the sale.
Could there be any additional fees?
That depends on the Auction contract and of course if any issues or disputes arise. Sometimes an Auction Contract will contain additional provisions requiring that the successful buyer pays additional fees and a buyer’s premium. These can be unexpected surprise costs to the buyer if the Auction Contract is not checked carefully.
We will always honour our fixed fee quoted unless the information relied upon by us at the time of the estimate was incorrect or it subsequently becomes apparent that there's an aspect of the transaction that will significantly affect the amount of time that has to be spent by us – in either case we will notify you of any such development before we proceed further.
Will Russell & Russell provide a written fee estimate for an auction property?
We always provide a written estimate at the outset of a transaction based on the information provided to us at that time, so that you know where you stand and to ensure that there's no misunderstanding between us at a later time.
In the case of residential property transactions, we are usually able to offer a fixed fee for our time. We will quote a fixed fee for the work normally undertaken in a standard case and will provide you with a list of additional fixed fees that we would charge if you require additional work to be undertaken. Examples of this would be arranging a Title Indemnity Policy, preparing a Trust Deed or dealing with a Deed of Covenant.
We will always honour the fixed fee quoted unless the information relied upon by us at the time of the estimate was incorrect or it subsequently becomes apparent that there's an aspect of the transaction that will significantly affect the amount of time that has to be spent by us – in either case we will notify you of any such development before we proceed further. Examples of circumstances that might change the cost would be if the property is a flat, not a house as you initially informed us, if a lease extension is required or if the ownership is defective and remedial action is needed. For a free quote and breakdown of related third party payments (disbursements) known at this time, please use our quote enquiry form.
In addition to receiving instructions direct from buyers and sellers, we also work alongside brokers, referrers and property agents who refer clients to us. If we've agreed to pay to them a referral fee for recommending us to act for you then we will disclose the amount to you and We will pay the amount involved to the referrer out of our fee.
How long is between the Auction and completion
It is usually 28 days but the seller will instruct the Auctioneer how long to allow and for the required timescale to be put in the Auction Contract. If you intend to bid, you should ask us to review the contract for you before the Auction and advise you of any legal requirements.
How long will the conveyancing process take for an auction property?
For a property bought at Auction the completion date is fixed by the seller and the sale must usually be completed with 28 days. However, a sale can be completed in a shorter period providing all parties are agreeable and are willing and able to work together to achieve this.
Will you have the time to undertake the work that needs to be carried out before the Auction?
We usually have capacity to take on Auction work but it will obviously depend how close we are to the date of the Auction when you instruct us so do not delay. If we do not have the capacity to deal with the transaction in the required timescale we will say so. The best thing you could do is call us now to discuss on 0800 103 2600.
Sales outside the Auction
Properties placed in an Auction are sometimes withdrawn from the Auction before it takes place because the seller receives an acceptable offer pre-auction and does not wish to risk the property selling at Auction.
Properties not sold during the Auction because no bids were received or because the bids received did not meet the reserve are sometimes still be sold on the day after the Auction has taken place. Some canny buyers specifically look for such opportunities.
Does my location, or that of the property, matter?
No, your location is irrelevant – we can act for you whether or not you are local to our offices. ID verification can be dealt with electronically and you can on-board (instruct us) by completing documents on our Portal. If face to face is needed we also have the facility to use Zoom and/or Teams video conferencing if you cannot get to one of our offices.
The location of the property you are dealing with is also irrelevant as the same principles apply to properties across all of England and Wales.
What is completion?
The completion date is the day when ownership of the property is transferred from the seller to the buyer. The completion day can take place on any working day (Monday to Friday) and it is also the day the keys should be handed over and the buyer is entitled to possession. Financial penalties are imposed if one of the partiers fails to complete on or before the completion date. If there is a default a Notice to Complete can be served after expiration of a set number of days as provided for in the Auction contract. If the Notice expires without completion taking place there are further financial implications.
Will I have a direct contact number and email for my conveyancer?
Yes, we will let you know the name and direct contact details of the person who is primarily dealing with your case when you become our client. That person will have support and also a Supervisor.
What happens if I need to speak to someone out of normal office hours or at a weekend?
We operate an out of hours, seven days a week service so you can speak to us in the evening or at weekend if you need to. The number to call is 07884 067 920.
“Having come back to work for a rest, I just wanted to thank you both again for your help and support throughout. As mentioned to you last week Michelle, Adina has been absolutely superb and has worked hard to maintain good communication between all parties, including the NatWest. Her helpful attitude and willingness to go that extra mile was very much appreciated and although I didn’t deal with you very much Michelle, I understand Adina can only work as fast as you did, so a BIG thank you to you too for your efficiency throughout the process.
“It’s very often the case that you’ll hear how solicitors can be slow in turning these things around so I was very pleased to have had such a good experience with Russell and Russell and would highly recommended your services in future to friends and family.”
Conveyancing
"May I take this opportunity to thank you so very much for the efficient professional and courteous manner with which you have conducted this matter. Your patience and helpfulness have made our dealings run so smoothly. I am grateful to you"
Conveyancing
"Thank you very much. I was extremely happy with the way you handled this sale. I would highly recommend Russell and Russell and will be in touch as soon as I find a property to buy."
Conveyancing
"If ever I move again I will endeavour to instruct you. THE most efficient service from any legal practice I ever worked with."
Conveyancing
"Thanks for all you've done and for making the whole process so much easier than it could've been, I really appreciate it. End of a huge era for all of us and your professionalism and empathic approach really was amazing."
Suffered an injury?
New home?
Get a quote now
