Member Article

The property auction legal pack

Whether you’re a seasoned landlord or someone starting out to build a property portfolio, there are some things you’ve just got to do before making a bid on a property at auction. A key one is for both you and your solicitor to check the legal pack.

It does what it says on the tin – all the important legal documents you need to be aware of in relation to the property or land are in one handy pack for you to review.

The pack is put together by the vendor’s solicitor – so if you intend to sell at an auction this is something you will have to organise to be done in good time before the auction in which your property goes up for sale.

Typically the legal pack will contain details of:

• special conditions of sale
• leases
• tenancy agreements
• local authority searches
• details on the title
• planning permissions

By reading and understanding these documents, it will give you more confidence to bid and know what you are buying.

If you intend to extend the property or change its use once you’ve bought it, the pack will help make you aware, for example, of any restrictive covenants that may prevent you carrying out certain types of work on the property or certain uses the building is allowed to be used for, or not as the case may be.

Auctioneers can provide the legal packs for you and usually they can be posted or downloaded from their websites. Packs are usually ready two to three weeks prior to the auction and at this time it’s worth visiting the property to get a look at the location and condition for yourself. Auctioneers often have specific dates and times for block viewings for all interested bidders, so check these dates with them for the properties you’re interested in.

So, in summary, remember when the gavel falls on your winning bid a binding contract comes into force so do make sure that you do all your research before you bid. And that includes reading the legal pack.

This was posted in Bdaily's Members' News section by Ron Bell .