The Auction Legal Process

Provided by Richard Franco-Robinson, Auction Department Manager, The Foster Partnership

Whether you are buying or selling at auction, the legal process can be divided into two distinct stages:

• Pre Auction – all the due diligence work up to and including the auction itself.
• Post Auction – all work after the date of the auction, up to and including completion and registration of the transaction.

Auction Purchase

Pre Auction

1. Obtain the auction legal pack from the auctioneers
2. Consider the Special Conditions that apply and advise you in respect of the same
3. Undertake any necessary searches
4. Raise enquiries with the Seller’s Solicitors and receive replies
5. Fully investigate the title
6. Prepare a full report for you on the property, prior to the auction

Post Auction

1. Receive the auction sales memorandum from the auctioneers
2. Draft and submit the Transfer Deed and requisitions on title to the Seller’s Solicitors
3. Undertake the usual pre-completion searches
4. Report to you with the mortgage deed for signature (if you are taking a mortgage over the property)
5. Obtain the completion statement from the Seller’s solicitors
6. Obtain the completion monies from you
7. Deal with the completion of the transaction
8. Submit the Stamp Duty forms to HM Revenue & Customs on your behalf, paying any necessary Stamp Duty
9. Register the transaction at the Land Registry
10. Send out the Title Deeds, following registration, either to you or to your mortgage lender (as appropriate)
11. On a leasehold transaction, register notice of your interest with the freeholder or Managing Agents

Auction Sale

Pre Auction

1. Draft the Special Conditions that apply and advise you in respect of the same
2. Submit to you the usual information forms, for you to complete and return
3. Undertake any necessary searches
4. Prepare and submit the auction legal pack to the auctioneers
5. Deal with any enquiries raised by potential buyers

Post Auction

1. Receive the auction sales memorandum from the auctioneers
2. Receive and approve the Transfer Deed and requisitions on title from the Buyer’s Solicitors
3. Submit replies to requisitions
4. Send you the Transfer Deed for signature
5. Obtain the title deeds and a redemption statement from your mortgage lender (if you are have a mortgage over the property)
6. Prepare and submit the completion statement to the Buyer’s solicitors
7. Deal with the completion of the transaction
8. Repay any mortgages you have over the property
9. Send out the Title Deeds, following completion, to your Buyer’s Solicitors
10. Account to you for the balance of the sale monies

Remember at an auction, the process of buying or selling a property is condensed into a matter of minutes rather than months. For both buyer and seller this speed can prove to be extremely advantageous; however, it should not diminish the significance of the transaction – there are many considerations for both parties and time, good consideration and professional counsel are still critical.