Selling a property at auction is becoming increasingly common place, no doubt due to the various television programmes based around the property auction process. But why would you sell a property via auction and how do you go about it?

While it was true that in the past that properties were only disposed of via auction if there was something catastrophic wrong with them that prevented the property being sold  on the open market, this is no longer the case. An auction can be a good way to sell a property if you want the certainty of having a property sold by a certain date, or to sell part finished projects or sites. It can also be a method to sell a property which may have a title issue making it difficult to sell via an estate agents.

To make your property attractive for a prospective bidder, you should appoint a solicitor who has experience of auctions as they differ from the usual sale process.  Your solicitor will prepare an ‘auction pack’. This contains all the title deeds and information a purchaser needs to assess whether they wish to buy before the auction date.

A prospective purchaser will have their solicitor review the auction pack and raise any queries in advance of the sale.  Therefore, once a property is sold at auction, the purchaser is deemed to be aware of all matters, good or bad, contained within the auction pack, pays a 10% deposit, and a completion date is set. After the auction, your solicitor and the solicitor acting for the purchaser will be notified and they will complete the sale for you.

Our Property Law Partner Ruth Flinn is experienced in both selling and buying auction properties. Should you wish to discuss any potential sale or purchase of property at auction, Ruth can be contacted via email on rflinn@fhanna.co.uk or by calling 028 9024 3901