In short
- You're usually treated as knowing what's in the pack, read or not.
- Check the special conditions and the addendum for extra costs and late changes.
- Ask a solicitor to review it before you bid.
The legal pack is the most important document for any auction lot. Auction conditions usually treat you as knowing what is in it, whether or not you have read it. RICS advises getting legal advice before you bid, especially if you are new to auctions.
What is usually inside
- Conditions of sale: the general terms, often based on the RICS Common Auction Conditions.
- Special conditions of sale: terms specific to this lot.
- Memorandum of sale: the contract record you sign, or that is signed for you, when you win.
- Title documents from HM Land Registry, including the register and title plan.
- Searches, such as local authority, drainage and water. These are not always included.
- Leases for leasehold flats or tenanted property, with ground rent and service charge details if supplied.
- An Energy Performance Certificate and any planning documents.
Also check the addendum, which lists late changes to the particulars and legal pack. It can change the lot, the fees or the completion date.
Special conditions to look out for
- A completion date shorter or longer than usual.
- The buyer paying the seller's legal costs, search fees or arrears.
- A buyer's premium or administration fee.
- VAT payable on the price.
- Limits on your right to raise questions about the title.
- Missing documents, such as no lease, no searches or an unregistered title.
Questions to ask a solicitor
- Is the title sound, and does the plan match what I saw on site?
- For a leasehold, how many years are left, what are the ground rent and service charges, and is a lender likely to accept it?
- Are there tenants, and on what terms?
- What will I pay on top of the price?
- Is anything missing that would worry a mortgage lender?
- What happens if I cannot complete on time?
Leave enough time. Packs can appear only days before the auction and documents are sometimes added late. If the pack is incomplete and the seller will not provide more, think carefully about whether the risk is worth taking. Check with a solicitor before you bid.
Sources
- RICS consumer guide: Property auctions
- RICS: Auctioneers selling real estate (incorporating Common Auction Conditions)
General information, not advice. Check with a solicitor or broker for your situation.
