Buying at auction is not for the faint of heart or those without the money to hand.
The slowdown in the property market following the recession has led to the resurgence in auction houses particularly of distressed properties.
It can seem like an opportunity to snap up a bargain at a discount and yet caution is necessary. Buying a house or a commercial property is one of the biggest investments most people will make in a lifetime.
Getting legal advice
Carmody Moran Solicitors and indeed the standard Law Society format Contract for Sale advise against executing a contract to buy a property and its legal title without first obtaining legal advice.
The process is quick, generally once the hammer falls and you execute the contract you have four weeks to complete the transaction irrespective of how you intend to finance it or the availability of your funds or any problems with the title, planning, structure or otherwise of the property.
As such experienced legal advice is essential to review the title and advise on the process. It is vital not to get swept away in the speed of the process and to first do your research and take advice. Ideally you should contact your Solicitor two to three weeks in advance of the auction and brief them on your intended transaction.
The legal pack and contracts with special conditions will all need to be reviewed and analysed and you will need to discuss the report with your solicitor and decide if you wish to proceed to make a bid at the auction and if you wish your solicitor to attend the auction with you or on your behalf.
Remember if the bids don’t meet the reserve on the day there may still be scope to negotiate after the auction and Contracts may still be signed and negotiated at the auction.
“Unless you do your homework in advance there is a real chance you get carried away in the bidding and find yourself with a property impossible to mortgage or have overspent. Early and experienced legal advice is crucial in such transactions”
– Niamh Moran | Partner in Carmody Moran Solicitors
If you have purchased at auction without legal advice you are likely to need assistance to complete the transaction.
The Golden Rules of Buying at Auction
- Do your homework including survey
- Obtain the legal pack including contracts
- Speak with a solicitor and have the contracts and title reviewed
- Organise your finances
- Know your budget and stick to it
- Don’t get carried away by the bidding and excitement
- Don’t let other buyers intimidate you
Please telephone us on 00353 1 8272888 to speak with one of our team to discuss your requirements and for further information or use the quick enquiry form here.