Buying a property at auction may prove to be one of the benefits of the recent downturn in the property market. For those investors looking for a bargain or for those looking to get onto the property ladder this can be a way of making your money stretch further.
There are risks which do need to be considered and it is vital to make sure:-
The legal pack (including the contract) which is made available by the auctioneers is reviewed as early as possible. The contract itself may reveal additional costs which will be incurred by the successful bidder and additional searches may need to be undertaken.
A survey is commissioned and if there are works required to the property that you are aware of the cost implications.
Your finance or funding is secured. If it is not you will need to be confident that it will be in place for completion or you risk being in breach of contract, losing your deposit and suffering penalties.
If your bid is successful the purchase is binding on you and contracts are deemed to be exchanged. You will be expected to pay a full ten per cent deposit immediately and usually complete within 28 days. The contract may require you to put buildings insurance on risk from the auction date and you will therefore need to make sure that you have a policy available.
If you would like advice on any of the
above, or similar issues, please contact
Anne Elliss or a member of the Property
Department at Wortley Byers on 01277
268304 or aelliss@wortleybyers.co.uk.
