The Essential Guide to Understanding Your Auction Legal Pack
Buying a property at auction offers great deals and unique opportunities, however there is also the element of risk, so understanding the auction legal pack is the key to you being well informed before placing a bid on a property. As you enter into a binding contract the moment the hammer falls, and there’s no going back, it is also especially important to carefully go through each component of the legal pack, keeping an eye out for any quirks to avoid surprises later down the line.
Here at Attwells, our highly experienced auction conveyancing team can ensure you a smooth auction experience through reviewing and helping you understand what to look out for in an auction legal pack as well as discuss any concerns you may have.
What is an auction legal pack?
An auction legal pack is a compilation of documents containing information that a potential buyer will want to know about a property being sold at auction. It is prepared by the seller’s solicitor and is available on the auctioneer’s website.
What does a good auction pack include?
- Title documents – these confirm if the land is registered with the land registry or not, whether it’s a freehold or leasehold, outlines the boundaries of the property on the title plan and any restrictions or covenants which could affect your use of the property.
- A Property Information Form – also known as a TA6, provides insight into property’s condition and history. It includes details about any disputes, or any structural issues with the property such as damp or repairs needed which could lead to future expenses. This form also states whether there are any current occupants.
- Special conditions of sale – every auction has different terms and conditions regarding deposit requirements, completion timeframes and deadlines or any sellers’ fees to be paid for by the buyer. To avoid any unexpected surprises, these should be paid close attention to.
- Searches:
Local authority – reveals any planning permissions, legal restrictions or environmental issues that may affect the property, e.g. whether the property lies in a conservation area or if there are any upcoming roadworks
Environmental – highlights risks relating to land itself, such as flood risks or contaminated land if the surrounding area was used for industrial purposes previously.
Water & drainage – indicates whether the property is connected to the public water supply and sewerage system and the location of nearby pipes.
- Energy Performance Certificate (EPC) – provides an assessment of the property’s energy efficiency. A poor energy rating can leave you with high utility costs and expensive repairs.
- Leasehold information – if the property is a leasehold, this document is essential as it contains terms for the leaser and obligations of the freeholder. It also contains the remaining term of the lease, rent and restrictions on making changes to the property.
Why is it important to review a legal pack?
- Identifying risks
The legal pack may reveal potential issues, such as current disputes, restrictions and regulations. Becoming aware of these will mitigate risk and help you better plan and prepare for the future.
- Understanding the full cost of ownership
Firstly, any seller’s and auctioneer’s fees found within the special conditions will need to be factored into your bid otherwise you’ll end up paying a lot more than you anticipated. Searches and the Property Information Form may reveal structural or environmental issues which may be expensive to repair in the future, and this may affect bidding decisions.
- Planning for future use
The legal pack may contain planning permissions which is vital if you are planning to develop the property, as your plans will have to comply with local regulations. Restrictions within the title documents explain what the owners can and can’t do.
This information will help you assess whether the property meets your needs.
How can Attwells help you?
While you can review an auction legal pack on your own, it is highly recommended that you seek professional legal advice. At Attwells, we aim to review a legal pack for you within 48-72 hours. Our Auction Department will not only help you understand the different documents, but we will also highlight any red flags as well as raise enquiries and request any documents missing from the legal pack that may be relevant to your future plans for the property.
Our blogs and articles are correct at the time of writing.
These have been created for marketing purposes only and should not be considered as legal advice.
