Whilst buying a property at auction can be a great investment, it can also be a nightmare waiting to happen. Unfortunately, in August of this year, a purchaser from Glasgow learnt this lesson the hard way when he purchased a property for £7,000, and then discovered it was due to be demolished due to its severe state of dilapidation. Whilst the purchaser is currently seeking legal assistance to try and withdraw from the contract, at his expense, this situation could have been easily avoided if he had sought legal assistance prior to making a bid.
If you are thinking of buying a property at auction, one of our experienced conveyancing lawyerswould be happy to assist. Not only would your solicitor examine the Home Report and advise whether a more in depth survey may be required, they would also examine the title deeds to ensure that the property can be used in accordance with your wishes and confirm that there are no unduly onerous title conditions affecting the property. They could also obtain specialist reports and searches to ensure that there are no adverse local authority notices or orders affecting the marketability of the property. Your solicitor would also investigate whether there have been any unauthorised alterations, advise on the consequences of the same, and suggest a possible resolution to remove any possible issues at re-sale.
It is vital that the above-mentioned checks are completed prior to making an offer as often a deposit of 10% is immediately payable on a successful bid, with the rest of the price often being payable within the succeeding 28 days. Spending both time and a little money from the offset could prevent a nasty surprise waiting for you further down the line.
Below are some tips to consider if you are interested in buying at an auction.
Tips for Buying At Auction:
• Visit the property prior to making a bid to ensure that it corresponds with the sales particulars.
• Instruct a Solicitor to examine the title deeds.
• Invest in a structural survey to check for any hidden “nasties”.
• Finalise your funding arrangements (such as mortgage finance) in advance of a bid.
• Read the addendum sheet on the morning of the auction as this will reveal any amendments to the marketing of the property since the sales particulars were produced.
• Decide the maximum you wish to offer before the auction and stick to it!
If you would like advice about buying a property at auction, please contact us and one of our experienced lawyerswill be happy to assist you.
North Berwick - 01620 892138
