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Legal Matters And More On Conveyancing For Auction Properties

Conveyancing is necessary in the UK, being a mandatory legal process – it has to be followed and maintained at all times when buying or selling properties. There are many different types of properties available in the UK that can be bought directly by paying cash or taking a bank loan or taking a mortgage. Lawyers who specialize in property dealing are known as conveyancing solicitors or just solicitors. They are ones who conveyance for properties. Of all the different types of properties available, one is auction property. In the previous article, we discussed the general idea of auction properties and started the discussion on how to buy it. In the following article, we will be analyzing that and present conveyancing for auction properties.

General idea of auction properties

Repeating what was said in the previous article, auction properties are properties that have the chance of being a profitable buy. It is a great type of property to buy because auction means there is a lot of competition. Auction property purchase usually takes less time than normal property purchase and the guideline are as follows.

Buying an auction property

After you have shortlisted which property you are interested in, research the property. Do it thoroughly and compare the condition and price of the property to the others in the catalogue. Likewise, you can compare it with properties that are sold by local estate agents. It is worthy to mention that auction property prices are usually lower than general property prices to attract more buyers. Therefore, find the information and understand the actual market value of it.

There are legal matters that needs to be looked after when buying a property on auction. The auctioneers usually provide a legal pack which you can read to know the details. If you are confused about anything here, then ask your conveyancing solicitor. Also, the best thing to do is to give this to your solicitor so that they can give you advice that is in your best interests.

Afterwards, it is time to make necessary financial arrangements before the auction commences. You should also manage mortgage if you require one to buy the property. Next, be prepared when the time of auction arrives. The process can be overwhelming and so you can discuss this with your solicitor to help you go through it swiftly. Things to do in the auction day is to register and be present early. After bidding starts, you will have to be aware to remember the true value of the property. If bid surpasses that then it is best not to buy that property, if it does not then you should buy it.

After the auction is done, a binding contract is concluded. This is the major notable difference between a normal property and an auction property. Usually, when buying normal properties, there is no binding that you will have to buy or sell the property unless there is some sort of contract signed. However, in case of this type of property, when you have won the bidding you must sign the binding contract and buy it afterwards. Your conveyancing solicitor will check the details and help you get through the process easily.

Auction bargains do not always mean and ensure that properties will come in cheap. In the previous article we had mentioned that properties are put on auction because they are in very poor condition or they do not have proper legal titles. Therefore, you have to be aware of this at all times during and before the bidding process to ensure that you do not find yourself in any problem afterwards. Property renovation is costly in current times and if the amount which you are paying to buy the property and the amount you will be spending to renovate it together surpass the amount of buying a normal property then it is best to not buy it on auction.

Therefore, before going into an auction and bidding, get a pre-auction title report from your conveyancing solicitor and ask them to get a proper building survey done. That way they will be able to ensure that you can buy a good property and be profited. In the UK, Nigel Broadhead Mynard Conveyancing Solicitors do property conveyancing and residential conveyancing. They also deal with auction properties and it is best to check them out if you plan to buy an auction property.

Posted by on 12/07/2016 in Buying at auction

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