Specialist residential
Residential auction purchase
Buying a home at auction, with the legal pack reviewed before you bid and the purchase completed within the auction's short deadline.
Every cost on its own line: the law firm's legal fee, VAT, the searches and other third-party costs, and any property tax. Your quote opens as soon as you send the form.
Bidding at a traditional auction is legally binding when the hammer falls. Have the legal pack reviewed and your funding in place before you bid.
Buying at auction moves much faster than a normal purchase. At a traditional auction the deal becomes legally binding when the hammer falls: you pay a deposit on the day, commonly 10% of the price, and usually have to complete within about 20 working days, about four weeks. Some auctions use a different format, often called a modern method of auction, where the winning bidder pays a non-refundable reservation fee and then has a set period to exchange and complete.
Either way, the legal work needs to happen before you bid, not after. The auctioneer publishes a legal pack containing the title, searches, special conditions and, for flats, the lease. This service covers reviewing that pack, reporting the risks and then completing the purchase to the auction deadline.
Your instant quote includes the charge for auction work. If you go ahead, Keyfolio introduces you to a regulated law firm that handles auction work, so allow enough time before the auction for the pack to be reviewed.
What is involved
Auction work is front-loaded, so most of it happens before you bid:
- Legal pack review: checking the title, searches, special conditions, any lease and any tenancies, and asking the auctioneer or the seller's solicitors about anything missing.
- Report before bidding: explaining the risks and the extra costs in plain terms, such as buyer's fees, the seller's legal costs or arrears you would have to pay on top of the price.
- Extra searches: recommending any searches the pack does not include, which may need ordering urgently or covering with insurance.
- Funding check: confirming your deposit and completion money are ready, and that your lender can meet the deadline if you are borrowing.
- After the hammer falls: receiving the signed contract and deposit receipt from the auctioneer and agreeing a timetable to completion.
- Lender requirements: if you have a mortgage or bridging loan, reporting on the title and requesting the funds in good time.
- Completion: sending the rest of the price by the contractual deadline.
- After completion: sending the tax return within the deadline and applying to HM Land Registry to record you as the owner.
What the legal fee covers
- Reviewing the auction legal pack before you bid
- A written report on the title, searches and special conditions
- Explaining the extra costs and obligations in the contract
- Raising questions with the auctioneer or the seller's solicitors
- Acting for your lender on a mortgage or bridging loan
- Completing the purchase by the auction deadline
- Filing the property tax return
- Registering your ownership at HM Land Registry
Costs you may see on top
- The charge for auction work, for reviewing the pack to tight deadlines (your instant quote includes it)
- Searches not included in the legal pack, or insurance in their place
- Buyer's or administration fees charged by the auctioneer
- Seller's costs that the special conditions pass to you, such as their legal fees or search costs
- Arrears of service charge or ground rent that the contract makes your responsibility
- HM Land Registry fees
- A fee for acting for your lender, and an urgent completion admin fee if the timetable is very tight
- Stamp Duty Land Tax, or the Welsh equivalent
What to have ready
- The complete, latest legal pack, including any addendum issued by the auctioneer
- Proof of funds for the deposit and the rest of the price
- Your mortgage or bridging offer, or the lender's confirmation it can complete in time
- Photo identification and proof of address, which auctioneers also check
- The auction date, the auction format and the completion deadline
- Your survey, or notes from your viewing
How long it takes
At a traditional auction, completion is usually required about 20 working days (about four weeks) after the hammer falls, although the special conditions may set a different period. With a modern method of auction, there is often a set period to exchange followed by another to complete. The pack review itself ideally needs several working days before the auction. Delays after the auction are risky: if you cannot complete on time you may lose your deposit and face further claims, so funding must be arranged in advance.
Things to watch for
- Read the special conditions and any addendum. They can add costs, such as the seller's legal fees, or shift risks to you, and late changes are often announced on the day.
- A mortgage offer is not a promise that the money will arrive in time. Check your lender can complete within the deadline, or line up bridging finance as a back-up.
- Arrange buildings insurance from the moment the contract is binding, which at a traditional auction is the fall of the hammer, unless the conditions say otherwise.
- Check whether the property is sold with tenants or with vacant possession, and read any tenancy documents in the pack before you bid.
- An online conveyancing quote is not a legal pack review. Instruct a conveyancer early enough for the pack to be properly checked before the auction.
Questions people ask
When should I instruct a conveyancer?
As soon as you are seriously interested in a lot, and ideally at least a week before the auction. The conveyancer needs the full legal pack and time to raise questions and order any extra searches. If the pack is incomplete or arrives late, they can tell you what is missing and what risks you would be taking by bidding without it.
What happens if I cannot complete on time?
If you miss the deadline, the seller can usually serve a notice requiring you to complete, and if you still cannot, keep your deposit, resell the property and claim any loss from you. This is why funding needs to be arranged before you bid. If a delay looks likely, tell your conveyancer immediately so they can speak to the seller's solicitors.
Can I get a mortgage for an auction purchase?
Sometimes, but the timetable is tight. You need a lender that can value the property and issue an offer quickly, and the property must be acceptable as security, which can be a problem for homes needing major work. Many buyers use savings or bridging finance and refinance later. Our auction guide has more on preparing to bid.
Is a modern method of auction different?
Yes. Instead of exchanging at the fall of the hammer, the winning bidder usually pays a non-refundable reservation fee and signs a reservation agreement, then has a set period to exchange and complete. The fee is often payable on top of the price, so read the terms carefully and ask your conveyancer to review the reservation agreement as well as the legal pack.
Who does the work
Your matter is handled by a law firm regulated by the Solicitors Regulation Authority, the Council for Licensed Conveyancers or CILEx Regulation, or in Northern Ireland by a solicitor regulated by the Law Society of Northern Ireland. At the moment the law firms on our panel act for property in England and Wales, so for property in Northern Ireland we tell you whether a firm can act for you before we pass your details to anyone. The firm confirms who will work on your file, their experience and its terms before you instruct it. How we choose our firms.
Helpful guides
The other costs of your move
- Stamp duty calculator: stamp duty in England and Northern Ireland, Land Transaction Tax in Wales
- Moving costs calculator: the other costs of the move, from the survey to removals