Buying Property at Auction and How to Protect Your Investment

• Posted onFebruary 24, 2025

If you’re considering purchasing property or land at auction, whether it’s a residential home, commercial property, or a development project, the process offers both unique opportunities and challenges. Auction sales are fast-paced and often come with a host of complexities that make having a solicitor by your side essential. Remy Taylor Trainee Solicitor in our Commercial Property Department guides you through the process.

Understanding the legal implications of buying a property at auction 

In an auction, once the hammer falls, the sale is legally binding, and you are committed to completing the purchase. There is no opportunity to negotiate terms after the fact. This makes it imperative to have a solicitor who can provide guidance ahead of the auction in the following ways:

Reviewing the legal pack before the auction

Each lot offered at auction comes with a legal pack containing documents such as the title deeds, searches, and property information forms. WSP Solicitors expertise is invaluable in identifying any issues within these documents that could pose financial or legal risks. Our team will be able to identify potential concerns, such as restrictive covenants or unexpected liabilities.

Understanding auction contract conditions

Contained in the auction pack is the contract, which is often drafted on an “as-is” basis, meaning the property is being sold in its current state, including any undisclosed problems. Our team can help you understand these risks and advise on how they might impact your bid price or financing requirements.

On occasion, the contract may include overage provisions that allow the seller to receive additional payments in the future if the property increases in value due to certain events, like redevelopment. It is important to seek advice on these provisions to understand your long-term financial liabilities.

Securing a mortgage for an auction purchase

Securing finance for an auction purchase can be challenging. Many lenders impose strict timelines on completing auction transactions, which can add additional pressure. It is imperative that you liaise with your lender or broker well in advance to establish if finance is available.

Meeting post-auction legal requirements

Once the auction is over, the race to completion begins, with strict deadlines and heavy penalties if you fail to meet them. WSP Solicitors is able to offer assistance throughout, including coordinating with the transfer of funds, filing stamp duty land tax (SDLT) returns, and registering your ownership with hm land registry.

Why legal support is essential for buying property at auction

Purchasing property at auction can offer incredible opportunities, but it also demands a deep understanding of legal obligations and the ability to act quickly under pressure. Our team provides the expertise and support needed to navigate the complex legal landscape of auction sales, ensuring you are fully protected throughout the process.

At WSP Solicitors, we are dedicated to providing comprehensive legal support to auction buyers, helping you minimise risks and maximise the value of your investment. With our experienced team on your side, you can approach the auction with confidence, knowing that we are here to protect your interests every step of the way.